DuPont Decomposition
Why does TEJASNET earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-31.0% = -82.8% × 0.12 × 3.21
Latest: FY2026
Profitability
Net Margin
-82.8%
-4.0% →-82.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.12x
0.26x →0.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.21x
1.21x →3.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 29.8 pp over 4 years. Driven by net margin declining (-4.0% → -82.8%), asset turnover declining (0.26x → 0.12x), leverage rising (1.21x → 3.21x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -4.0% | 0.26 | 1.21 | -1.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 0.28 | 2.60 | 2.0% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 0.81 | 2.72 | 11.6% |
| FY2026 | ₹0Cr | ₹-0Cr | -82.8% | 0.12 | 3.21 | -31.0% |
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.