DuPont Decomposition
Why does GLAND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.9% = 16.0% × 0.51 × 1.21
Latest: FY2026
Profitability
Net Margin
16.0%
27.6% →16.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.56x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.09x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.0 pp over 5 years. Driven by net margin declining (27.6% → 16.0%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 27.6% | 0.56 | 1.09 | 16.9% |
| FY2023 | ₹0Cr | ₹0Cr | 21.7% | 0.41 | 1.10 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 13.7% | 0.53 | 1.22 | 8.8% |
| FY2025 | ₹0Cr | ₹0Cr | 12.4% | 0.50 | 1.23 | 7.6% |
| FY2026 | ₹0Cr | ₹0Cr | 16.0% | 0.51 | 1.21 | 9.9% |
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.