DuPont Decomposition
Why does DTIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.5% = -0.5% × 0.49 × 1.82
Latest: FY2026
Profitability
Net Margin
-0.5%
-27.0% →-0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.33x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
1.39x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.1 pp over 5 years. Driven by net margin improving (-27.0% → -0.5%), asset turnover improving (0.33x → 0.49x), leverage rising (1.39x → 1.82x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -27.0% | 0.33 | 1.39 | -12.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -7.0% | 0.30 | 1.61 | -3.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -35.8% | 0.41 | 1.82 | -27.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -4.4% | 0.48 | 1.84 | -3.9% |
| FY2026 | ₹0Cr | ₹-0Cr | -0.5% | 0.49 | 1.82 | -0.5% |
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.