DuPont Decomposition
Why does RPOWER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.1% = -4.4% × 0.18 × 2.57
Latest: FY2026
Profitability
Net Margin
-4.4%
-7.4% →-4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
0.15x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.57x
4.23x →2.57x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 5 years. Driven by net margin improving (-7.4% → -4.4%), leverage falling (4.23x → 2.57x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -7.4% | 0.15 | 4.23 | -4.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.3% | 0.16 | 4.19 | -3.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -26.2% | 0.18 | 3.77 | -17.8% |
| FY2025 | ₹0Cr | ₹0Cr | 38.9% | 0.18 | 2.53 | 18.0% |
| FY2026 | ₹0Cr | ₹-0Cr | -4.4% | 0.18 | 2.57 | -2.1% |
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.