DuPont Decomposition
Why does ZYDUSWELL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.4% = 5.0% × 0.38 × 1.77
Latest: FY2026
Profitability
Net Margin
5.0%
15.5% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.35x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.77x
1.18x →1.77x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.0 pp over 5 years. Driven by net margin declining (15.5% → 5.0%), leverage rising (1.18x → 1.77x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.5% | 0.35 | 1.18 | 6.4% |
| FY2023 | ₹0Cr | ₹0Cr | 13.8% | 0.38 | 1.14 | 6.1% |
| FY2024 | ₹0Cr | ₹0Cr | 11.5% | 0.38 | 1.15 | 5.0% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 0.42 | 1.14 | 6.1% |
| FY2026 | ₹0Cr | ₹0Cr | 5.0% | 0.38 | 1.77 | 3.4% |
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.