DuPont Decomposition
Why does ZEEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.3% = 3.4% × 0.57 × 1.21
Latest: FY2026
Profitability
Net Margin
3.4%
11.8% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.62x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.22x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.6 pp over 5 years. Driven by net margin declining (11.8% → 3.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.8% | 0.62 | 1.22 | 8.9% |
| FY2023 | ₹0Cr | ₹0Cr | 0.6% | 0.59 | 1.28 | 0.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 0.64 | 1.24 | 1.3% |
| FY2025 | ₹0Cr | ₹0Cr | 8.2% | 0.60 | 1.19 | 5.9% |
| FY2026 | ₹0Cr | ₹0Cr | 3.4% | 0.57 | 1.21 | 2.3% |
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.