DuPont Decomposition
Why does THELEELA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.3% = 26.4% × 0.17 × 1.39
Latest: FY2026
Profitability
Net Margin
26.4%
3.7% →26.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.16x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.39x
2.32x →1.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.0 pp over 2 years. Driven by net margin improving (3.7% → 26.4%), leverage falling (2.32x → 1.39x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 0.16 | 2.32 | 1.3% |
| FY2026 | ₹0Cr | ₹0Cr | 26.4% | 0.17 | 1.39 | 6.3% |
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.