DuPont Decomposition
Why does ZENSARTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.4% = 13.6% × 0.93 × 1.29
Latest: FY2026
Profitability
Net Margin
13.6%
6.8% →13.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
1.18x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.38x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.4 pp over 4 years. Driven by net margin improving (6.8% → 13.6%), asset turnover declining (1.18x → 0.93x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.8% | 1.18 | 1.38 | 11.0% |
| FY2024 | ₹0Cr | ₹0Cr | 13.6% | 1.05 | 1.30 | 18.7% |
| FY2025 | ₹0Cr | ₹0Cr | 12.3% | 1.02 | 1.27 | 16.0% |
| FY2026 | ₹0Cr | ₹0Cr | 13.6% | 0.93 | 1.29 | 16.4% |
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.