DuPont Decomposition
Why does PATANJALI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.9% = 4.5% × 2.14 × 1.44
Latest: FY2026
Profitability
Net Margin
4.5%
3.4% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.14x
2.08x →2.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.86x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~14%. Driven by net margin improving (3.4% → 4.5%), leverage falling (1.86x → 1.44x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.4% | 2.08 | 1.86 | 13.1% |
| FY2023 | ₹0Cr | ₹0Cr | 2.8% | 2.36 | 1.34 | 9.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 2.39 | 1.30 | 7.5% |
| FY2025 | ₹0Cr | ₹0Cr | 3.9% | 2.18 | 1.36 | 11.4% |
| FY2026 | ₹0Cr | ₹0Cr | 4.5% | 2.14 | 1.44 | 13.9% |
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.