DuPont Decomposition
Why does TARIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.4% = 10.5% × 0.94 × 1.76
Latest: FY2026
Profitability
Net Margin
10.5%
3.0% →10.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.94x
1.16x →0.94x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.76x
3.01x →1.76x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.1 pp over 4 years. Driven by net margin improving (3.0% → 10.5%), asset turnover declining (1.16x → 0.94x), leverage falling (3.01x → 1.76x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.0% | 1.16 | 3.01 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 3.5% | 1.08 | 2.11 | 8.0% |
| FY2025 | ₹0Cr | ₹0Cr | 10.6% | 0.92 | 1.75 | 17.1% |
| FY2026 | ₹0Cr | ₹0Cr | 10.5% | 0.94 | 1.76 | 17.4% |
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.