DuPont Decomposition
Why does ZOTA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-10.7% = -13.7% × 0.48 × 1.63
Latest: FY2026
Profitability
Net Margin
-13.7%
6.8% →-13.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.94x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
1.55x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.6 pp over 5 years. Driven by net margin declining (6.8% → -13.7%), asset turnover declining (0.94x → 0.48x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.8% | 0.94 | 1.55 | 9.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -4.1% | 0.89 | 1.97 | -7.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -8.0% | 0.79 | 2.54 | -15.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -19.3% | 0.67 | 1.96 | -25.2% |
| FY2026 | ₹0Cr | ₹-0Cr | -13.7% | 0.48 | 1.63 | -10.7% |
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.