DuPont Decomposition
Why does RALLIS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.0% = 6.4% × 0.86 × 1.64
Latest: FY2026
Profitability
Net Margin
6.4%
6.3% →6.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.91x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.68x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~9%.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.3% | 0.91 | 1.68 | 9.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 1.06 | 1.62 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.6% | 0.88 | 1.64 | 8.1% |
| FY2025 | ₹0Cr | ₹0Cr | 4.7% | 0.89 | 1.56 | 6.6% |
| FY2026 | ₹0Cr | ₹0Cr | 6.4% | 0.86 | 1.64 | 9.0% |
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.