DuPont Decomposition
Why does DLF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.7% = 53.9% × 0.11 × 1.65
Latest: FY2026
Profitability
Net Margin
53.9%
26.3% →53.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.11x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.65x
1.44x →1.65x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.6 pp over 5 years. Driven by net margin improving (26.3% → 53.9%), leverage rising (1.44x → 1.65x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 26.3% | 0.11 | 1.44 | 4.1% |
| FY2023 | ₹0Cr | ₹0Cr | 35.8% | 0.11 | 1.43 | 5.4% |
| FY2024 | ₹0Cr | ₹0Cr | 43.6% | 0.10 | 1.53 | 6.9% |
| FY2025 | ₹0Cr | ₹0Cr | 54.6% | 0.12 | 1.63 | 10.3% |
| FY2026 | ₹0Cr | ₹0Cr | 53.9% | 0.11 | 1.65 | 9.7% |
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.