DuPont Decomposition
Why does AIRAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.8% = 10.8% × 0.58 × 1.24
Latest: FY2026
Profitability
Net Margin
10.8%
11.0% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.65x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.30x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.5 pp over 5 years.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.0% | 0.65 | 1.30 | 9.3% |
| FY2023 | ₹0Cr | ₹0Cr | 10.6% | 0.66 | 1.30 | 9.1% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 0.67 | 1.26 | 10.0% |
| FY2025 | ₹0Cr | ₹0Cr | 17.4% | 0.60 | 1.24 | 12.8% |
| FY2026 | ₹0Cr | ₹0Cr | 10.8% | 0.58 | 1.24 | 7.8% |
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.