DuPont Decomposition
Why does ZUARI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
44.0% = 28.8% × 0.98 × 1.56
Latest: FY2026
Profitability
Net Margin
28.8%
3.6% →28.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
0.57x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.56x
17.06x →1.56x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.5 pp over 5 years. Driven by net margin improving (3.6% → 28.8%), asset turnover improving (0.57x → 0.98x), leverage falling (17.06x → 1.56x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.6% | 0.57 | 17.06 | 35.5% |
| FY2023 | ₹0Cr | ₹0Cr | 10.5% | 0.90 | 3.19 | 30.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.2% | 0.95 | 2.85 | 5.9% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 0.88 | 2.71 | 8.9% |
| FY2026 | ₹0Cr | ₹0Cr | 28.8% | 0.98 | 1.56 | 44.0% |
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.