DuPont Decomposition
Why does DODLA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.9% = 6.5% × 1.97 × 1.25
Latest: FY2026
Profitability
Net Margin
6.5%
5.9% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.97x
2.06x →1.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.29x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~16%.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.9% | 2.06 | 1.29 | 15.8% |
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 2.25 | 1.29 | 12.6% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 2.11 | 1.30 | 14.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.0% | 2.15 | 1.23 | 18.5% |
| FY2026 | ₹0Cr | ₹0Cr | 6.5% | 1.97 | 1.25 | 15.9% |
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.