DuPont Decomposition
Why does AAKASH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.5% = 3.1% × 1.06 × 1.66
Latest: FY2026
Profitability
Net Margin
3.1%
8.0% →3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.09x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.66x
1.48x →1.66x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.3 pp over 5 years. Driven by net margin declining (8.0% → 3.1%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.0% | 1.09 | 1.48 | 12.8% |
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 1.11 | 1.59 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 0.98 | 1.60 | 10.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 1.02 | 1.60 | 3.0% |
| FY2026 | ₹0Cr | ₹0Cr | 3.1% | 1.06 | 1.66 | 5.5% |
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.