DuPont Decomposition
Why does DPABHUSHAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
33.5% = 5.2% × 3.56 × 1.81
Latest: FY2026
Profitability
Net Margin
5.2%
2.3% →5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.56x
4.19x →3.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
3.00x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.2 pp over 5 years. Driven by net margin improving (2.3% → 5.2%), asset turnover declining (4.19x → 3.56x), leverage falling (3.00x → 1.81x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 4.19 | 3.00 | 29.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 4.83 | 2.26 | 25.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 4.35 | 2.25 | 25.9% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 3.95 | 2.07 | 27.9% |
| FY2026 | ₹0Cr | ₹0Cr | 5.2% | 3.56 | 1.81 | 33.5% |
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.