DuPont Decomposition
Why does AIAENG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.8% = 29.2% × 0.51 × 1.06
Latest: FY2026
Profitability
Net Margin
29.2%
17.6% →29.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.69x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.06x
1.08x →1.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 5 years. Driven by net margin improving (17.6% → 29.2%), asset turnover declining (0.69x → 0.51x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.6% | 0.69 | 1.08 | 13.0% |
| FY2023 | ₹0Cr | ₹0Cr | 21.8% | 0.73 | 1.17 | 18.6% |
| FY2024 | ₹0Cr | ₹0Cr | 23.7% | 0.64 | 1.13 | 17.1% |
| FY2025 | ₹0Cr | ₹0Cr | 25.1% | 0.54 | 1.13 | 15.3% |
| FY2026 | ₹0Cr | ₹0Cr | 29.2% | 0.51 | 1.06 | 15.8% |
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.