DuPont Decomposition
Why does S&SPOWER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.3% = 3.8% × 0.96 × 3.06
Latest: FY2026
Profitability
Net Margin
3.8%
-2.1% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.83x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.06x
3.21x →3.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.8 pp over 2 years. Driven by net margin improving (-2.1% → 3.8%), asset turnover improving (0.83x → 0.96x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹-0Cr | -2.1% | 0.83 | 3.21 | -5.5% |
| FY2026 | ₹0Cr | ₹0Cr | 3.8% | 0.96 | 3.06 | 11.3% |
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.