DuPont Decomposition
Why does RGL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 0.9% × 0.58 × 1.60
Latest: FY2026
Profitability
Net Margin
0.9%
4.8% →0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
1.09x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
2.17x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.6 pp over 5 years. Driven by net margin declining (4.8% → 0.9%), asset turnover declining (1.09x → 0.58x), leverage falling (2.17x → 1.60x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 1.09 | 2.17 | 11.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.9% | 1.16 | 1.87 | 8.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 1.04 | 1.76 | 6.3% |
| FY2025 | ₹0Cr | ₹0Cr | 1.8% | 0.63 | 1.68 | 1.9% |
| FY2026 | ₹0Cr | ₹0Cr | 0.9% | 0.58 | 1.60 | 0.8% |
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.