DuPont Decomposition
Why does PPLPHARMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-4.0% = -3.7% × 0.49 × 2.20
Latest: FY2026
Profitability
Net Margin
-3.7%
5.8% →-3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.51x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.20x
1.91x →2.20x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.6 pp over 5 years. Driven by net margin declining (5.8% → -3.7%), leverage rising (1.91x → 2.20x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.8% | 0.51 | 1.91 | 5.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.6% | 0.48 | 2.14 | -2.8% |
| FY2024 | ₹0Cr | ₹0Cr | 0.2% | 0.53 | 1.94 | 0.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.0% | 0.58 | 1.93 | 1.1% |
| FY2026 | ₹0Cr | ₹-0Cr | -3.7% | 0.49 | 2.20 | -4.0% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.