DuPont Decomposition
Why does DOMS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.9% = 9.9% × 1.36 × 1.40
Latest: FY2026
Profitability
Net Margin
9.9%
2.1% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.36x
1.37x →1.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
2.01x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.1 pp over 5 years. Driven by net margin improving (2.1% → 9.9%), leverage falling (2.01x → 1.40x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.1% | 1.37 | 2.01 | 5.8% |
| FY2023 | ₹0Cr | ₹0Cr | 7.9% | 1.89 | 1.90 | 28.4% |
| FY2024 | ₹0Cr | ₹0Cr | 10.0% | 1.29 | 1.46 | 18.8% |
| FY2025 | ₹0Cr | ₹0Cr | 10.6% | 1.26 | 1.52 | 20.2% |
| FY2026 | ₹0Cr | ₹0Cr | 9.9% | 1.36 | 1.40 | 18.9% |
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.