DuPont Decomposition
Why does TIRUPATIFL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.7% = 3.9% × 0.80 × 1.53
Latest: FY2026
Profitability
Net Margin
3.9%
7.9% →3.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
1.51x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.96x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 18.5 pp over 5 years. Driven by net margin declining (7.9% → 3.9%), asset turnover declining (1.51x → 0.80x), leverage falling (1.96x → 1.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.9% | 1.51 | 1.96 | 23.2% |
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 1.63 | 1.42 | 26.0% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 1.33 | 1.49 | 13.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 0.79 | 1.36 | 7.3% |
| FY2026 | ₹0Cr | ₹0Cr | 3.9% | 0.80 | 1.53 | 4.7% |
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.