DuPont Decomposition
Why does DBREALTY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.6% = 1.6% × 0.25 × 1.55
Latest: FY2026
Profitability
Net Margin
1.6%
12.3% →1.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.03x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
4.64x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by net margin declining (12.3% → 1.6%), asset turnover improving (0.03x → 0.25x), leverage falling (4.64x → 1.55x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.3% | 0.03 | 4.64 | 1.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -13.1% | 0.08 | 3.95 | -4.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -16.4% | 0.09 | 1.75 | -2.6% |
| FY2026 | ₹0Cr | ₹0Cr | 1.6% | 0.25 | 1.55 | 0.6% |
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.