DuPont Decomposition
Why does SOLARA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.6% = -0.5% × 0.59 × 1.86
Latest: FY2026
Profitability
Net Margin
-0.5%
-4.7% →-0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.42x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.86x
1.93x →1.86x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.2 pp over 5 years. Driven by net margin improving (-4.7% → -0.5%), asset turnover improving (0.42x → 0.59x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -4.7% | 0.42 | 1.93 | -3.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.6% | 0.48 | 1.93 | -1.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -45.8% | 0.53 | 2.52 | -60.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.0% | 0.58 | 2.04 | 0.1% |
| FY2026 | ₹0Cr | ₹-0Cr | -0.5% | 0.59 | 1.86 | -0.6% |
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.