DuPont Decomposition
Why does GALLANTT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.6% = 11.0% × 1.03 × 1.29
Latest: FY2026
Profitability
Net Margin
11.0%
5.9% →11.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.03x
1.11x →1.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.29x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.2 pp over 5 years. Driven by net margin improving (5.9% → 11.0%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.9% | 1.11 | 1.29 | 8.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 1.37 | 1.33 | 6.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 1.32 | 1.28 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.3% | 1.21 | 1.25 | 14.1% |
| FY2026 | ₹0Cr | ₹0Cr | 11.0% | 1.03 | 1.29 | 14.6% |
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.