DuPont Decomposition
Why does TEXRAIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.2% = 4.5% × 0.87 × 2.13
Latest: FY2026
Profitability
Net Margin
4.5%
1.3% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
0.60x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
2.00x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.7 pp over 5 years. Driven by net margin improving (1.3% → 4.5%), asset turnover improving (0.60x → 0.87x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.3% | 0.60 | 2.00 | 1.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 0.66 | 2.43 | 1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.3% | 0.83 | 1.65 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 1.06 | 1.73 | 8.9% |
| FY2026 | ₹0Cr | ₹0Cr | 4.5% | 0.87 | 2.13 | 8.2% |
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.