DuPont Decomposition
Why does ADANIENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.5% = 9.3% × 0.38 × 3.23
Latest: FY2026
Profitability
Net Margin
9.3%
1.1% →9.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.68x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.23x
4.57x →3.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.0 pp over 5 years. Driven by net margin improving (1.1% → 9.3%), asset turnover declining (0.68x → 0.38x), leverage falling (4.57x → 3.23x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 0.68 | 4.57 | 3.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.9% | 0.90 | 4.28 | 7.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 0.60 | 4.11 | 8.3% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 0.49 | 3.94 | 14.1% |
| FY2026 | ₹0Cr | ₹0Cr | 9.3% | 0.38 | 3.23 | 11.5% |
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.