DuPont Decomposition
Why does TATACHEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-8.9% = -13.0% × 0.37 × 1.84
Latest: FY2026
Profitability
Net Margin
-13.0%
10.1% →-13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.37x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.84x
1.85x →1.84x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.8 pp over 5 years. Driven by net margin declining (10.1% → -13.0%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.1% | 0.37 | 1.85 | 6.9% |
| FY2023 | ₹0Cr | ₹0Cr | 13.9% | 0.48 | 1.78 | 11.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 0.42 | 1.65 | 1.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.6% | 0.39 | 1.75 | 1.1% |
| FY2026 | ₹0Cr | ₹-0Cr | -13.0% | 0.37 | 1.84 | -8.9% |
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.