DuPont Decomposition
Why does DDEVPLSTIK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.9% = 9.8% × 1.42 × 1.42
Latest: FY2026
Profitability
Net Margin
9.8%
2.5% →9.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.42x
2.40x →1.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.42x
2.37x →1.42x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.9 pp over 5 years. Driven by net margin improving (2.5% → 9.8%), asset turnover declining (2.40x → 1.42x), leverage falling (2.37x → 1.42x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.5% | 2.40 | 2.37 | 14.0% |
| FY2023 | ₹0Cr | ₹0Cr | 4.2% | 2.74 | 1.85 | 21.1% |
| FY2024 | ₹0Cr | ₹0Cr | 7.5% | 2.44 | 1.51 | 27.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 2.25 | 1.38 | 22.2% |
| FY2026 | ₹0Cr | ₹0Cr | 9.8% | 1.42 | 1.42 | 19.9% |
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.