DuPont Decomposition
Why does SBGLP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
36.3% = 26.5% × 0.54 × 2.52
Latest: FY2026
Profitability
Net Margin
26.5%
34.0% →26.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.54x
0.52x →0.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.52x
10.82x →2.52x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 154.0 pp over 4 years. Driven by net margin declining (34.0% → 26.5%), leverage falling (10.82x → 2.52x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 34.0% | 0.52 | 10.82 | 190.3% |
| FY2024 | ₹0Cr | ₹0Cr | 38.6% | 0.57 | 2.20 | 48.0% |
| FY2025 | ₹0Cr | ₹0Cr | 30.8% | 0.19 | 2.70 | 16.1% |
| FY2026 | ₹0Cr | ₹0Cr | 26.5% | 0.54 | 2.52 | 36.3% |
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.