DuPont Decomposition
Why does PYRAMID earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.4% = 4.2% × 1.29 × 1.91
Latest: FY2026
Profitability
Net Margin
4.2%
6.5% →4.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.29x
2.18x →1.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
2.44x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 24.4 pp over 5 years. Driven by net margin declining (6.5% → 4.2%), asset turnover declining (2.18x → 1.29x), leverage falling (2.44x → 1.91x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.5% | 2.18 | 2.44 | 34.8% |
| FY2023 | ₹0Cr | ₹0Cr | 6.6% | 2.13 | 2.11 | 29.6% |
| FY2024 | ₹0Cr | ₹0Cr | 5.5% | 1.76 | 1.37 | 13.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.60 | 1.48 | 10.7% |
| FY2026 | ₹0Cr | ₹0Cr | 4.2% | 1.29 | 1.91 | 10.4% |
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.