DuPont Decomposition
Why does AMBER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.1% = 1.5% × 0.89 × 3.15
Latest: FY2026
Profitability
Net Margin
1.5%
2.7% →1.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.84x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.15x
2.83x →3.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.2 pp over 5 years. Driven by net margin declining (2.7% → 1.5%), leverage rising (2.83x → 3.15x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.7% | 0.84 | 2.83 | 6.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 1.08 | 3.27 | 8.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 0.99 | 3.19 | 6.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.4% | 1.18 | 3.69 | 10.7% |
| FY2026 | ₹0Cr | ₹0Cr | 1.5% | 0.89 | 3.15 | 4.1% |
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.