DuPont Decomposition
Why does AIIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.1% = 74.0% × 0.14 × 1.30
Latest: FY2026
Profitability
Net Margin
74.0%
74.9% →74.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.14x
0.22x →0.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.29x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.3 pp over 5 years.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 74.9% | 0.22 | 1.29 | 21.4% |
| FY2023 | ₹0Cr | ₹0Cr | 998.1% | 0.06 | 2.02 | 126.0% |
| FY2024 | ₹0Cr | ₹0Cr | 191.3% | 0.19 | 1.12 | 41.4% |
| FY2025 | ₹0Cr | ₹0Cr | 92.6% | 0.28 | 1.10 | 28.9% |
| FY2026 | ₹0Cr | ₹0Cr | 74.0% | 0.14 | 1.30 | 13.1% |
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.