DuPont Decomposition
Why does DEEPINDS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.0% = 20.2% × 0.34 × 1.30
Latest: FY2026
Profitability
Net Margin
20.2%
22.4% →20.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.26x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.12x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 5 years. Driven by net margin declining (22.4% → 20.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 22.4% | 0.26 | 1.12 | 6.4% |
| FY2023 | ₹0Cr | ₹0Cr | 36.1% | 0.22 | 1.16 | 9.0% |
| FY2024 | ₹0Cr | ₹0Cr | 29.0% | 0.22 | 1.32 | 8.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -15.6% | 0.24 | 1.31 | -5.0% |
| FY2026 | ₹0Cr | ₹0Cr | 20.2% | 0.34 | 1.30 | 9.0% |
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.