DuPont Decomposition
Why does LUPIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.8% = 19.4% × 0.72 × 1.71
Latest: FY2026
Profitability
Net Margin
19.4%
-9.4% →19.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.74x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
1.80x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 36.3 pp over 5 years. Driven by net margin improving (-9.4% → 19.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -9.4% | 0.74 | 1.80 | -12.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 0.71 | 1.84 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 9.7% | 0.82 | 1.68 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 14.8% | 0.76 | 1.70 | 19.1% |
| FY2026 | ₹0Cr | ₹0Cr | 19.4% | 0.72 | 1.71 | 23.8% |
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.