DuPont Decomposition
Why does 5PAISA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.8% = 24.4% × 0.09 × 2.94
Latest: FY2026
Profitability
Net Margin
24.4%
6.4% →24.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.13x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.94x
4.30x →2.94x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.1 pp over 5 years. Driven by net margin improving (6.4% → 24.4%), leverage falling (4.30x → 2.94x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.4% | 0.13 | 4.30 | 3.7% |
| FY2023 | ₹0Cr | ₹0Cr | 18.5% | 0.14 | 3.54 | 9.4% |
| FY2024 | ₹0Cr | ₹0Cr | 21.0% | 0.13 | 3.79 | 10.1% |
| FY2025 | ₹0Cr | ₹0Cr | 29.8% | 0.14 | 2.76 | 11.3% |
| FY2026 | ₹0Cr | ₹0Cr | 24.4% | 0.09 | 2.94 | 6.8% |
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.