DuPont Decomposition
Why does DOLPHIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.4% = 58.9% × 0.19 × 1.72
Latest: FY2026
Profitability
Net Margin
58.9%
86.2% →58.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.03x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.03x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.9 pp over 3 years. Driven by net margin declining (86.2% → 58.9%), asset turnover improving (0.03x → 0.19x), leverage rising (1.03x → 1.72x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0.1Cr | ₹0.1Cr | 86.2% | 0.03 | 1.03 | 2.5% |
| FY2025 | ₹0Cr | ₹0Cr | 62.8% | 0.16 | 1.69 | 17.1% |
| FY2026 | ₹0Cr | ₹0Cr | 58.9% | 0.19 | 1.72 | 19.4% |
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.