DuPont Decomposition
Why does SHAILY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.7% = 17.1% × 0.86 × 1.60
Latest: FY2026
Profitability
Net Margin
17.1%
6.2% →17.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.83x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
1.85x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.2 pp over 5 years. Driven by net margin improving (6.2% → 17.1%), leverage falling (1.85x → 1.60x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.2% | 0.83 | 1.85 | 9.5% |
| FY2023 | ₹0Cr | ₹0Cr | 5.8% | 0.87 | 1.73 | 8.8% |
| FY2024 | ₹0Cr | ₹0Cr | 8.9% | 0.82 | 1.70 | 12.5% |
| FY2025 | ₹0Cr | ₹0Cr | 11.8% | 0.84 | 1.70 | 17.0% |
| FY2026 | ₹0Cr | ₹0Cr | 17.1% | 0.86 | 1.60 | 23.7% |
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.