DuPont Decomposition
Why does HBLENGINE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
36.8% = 24.7% × 1.12 × 1.33
Latest: FY2026
Profitability
Net Margin
24.7%
7.7% →24.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.12x
1.07x →1.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.33x
1.31x →1.33x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 25.9 pp over 5 years. Driven by net margin improving (7.7% → 24.7%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.7% | 1.07 | 1.31 | 10.8% |
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 1.05 | 1.36 | 10.4% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 1.34 | 1.36 | 23.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.1% | 0.99 | 1.34 | 18.7% |
| FY2026 | ₹0Cr | ₹0Cr | 24.7% | 1.12 | 1.33 | 36.8% |
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.