DuPont Decomposition
Why does AGIIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.4% = 26.9% × 0.22 × 3.40
Latest: FY2026
Profitability
Net Margin
26.9%
18.4% →26.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.32x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.40x
4.84x →3.40x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.5 pp over 5 years. Driven by net margin improving (18.4% → 26.9%), leverage falling (4.84x → 3.40x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.4% | 0.32 | 4.84 | 28.9% |
| FY2023 | ₹0Cr | ₹0Cr | 20.0% | 0.32 | 4.40 | 27.9% |
| FY2024 | ₹0Cr | ₹0Cr | 17.8% | 0.27 | 4.81 | 23.2% |
| FY2025 | ₹0Cr | ₹0Cr | 20.5% | 0.27 | 4.06 | 22.6% |
| FY2026 | ₹0Cr | ₹0Cr | 26.9% | 0.22 | 3.40 | 20.4% |
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.