DuPont Decomposition
Why does DLINKINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.6% = 6.7% × 1.93 × 1.60
Latest: FY2026
Profitability
Net Margin
6.7%
4.6% →6.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.93x
1.79x →1.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
1.69x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.6 pp over 5 years. Driven by net margin improving (4.6% → 6.7%), asset turnover improving (1.79x → 1.93x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.6% | 1.79 | 1.69 | 14.0% |
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 1.88 | 1.66 | 22.8% |
| FY2024 | ₹0Cr | ₹0Cr | 7.5% | 1.78 | 1.60 | 21.3% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 1.85 | 1.57 | 21.9% |
| FY2026 | ₹0Cr | ₹0Cr | 6.7% | 1.93 | 1.60 | 20.6% |
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.