DuPont Decomposition
Why does ZENTEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.2% = 28.1% × 0.32 × 1.14
Latest: FY2026
Profitability
Net Margin
28.1%
2.9% →28.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.19x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.30x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.5 pp over 5 years. Driven by net margin improving (2.9% → 28.1%), asset turnover improving (0.19x → 0.32x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.9% | 0.19 | 1.30 | 0.7% |
| FY2023 | ₹0Cr | ₹0Cr | 19.5% | 0.46 | 1.50 | 13.5% |
| FY2024 | ₹0Cr | ₹0Cr | 29.1% | 0.59 | 1.67 | 28.5% |
| FY2025 | ₹0Cr | ₹0Cr | 28.8% | 0.48 | 1.20 | 16.5% |
| FY2026 | ₹0Cr | ₹0Cr | 28.1% | 0.32 | 1.14 | 10.2% |
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.