DuPont Decomposition
Why does HDFCAMC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
31.0% = 69.3% × 0.41 × 1.08
Latest: FY2026
Profitability
Net Margin
69.3%
65.7% →69.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.41x
0.33x →0.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.08x
1.07x →1.08x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.7 pp over 4 years. Driven by net margin improving (65.7% → 69.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 65.7% | 0.33 | 1.07 | 23.3% |
| FY2024 | ₹0Cr | ₹0Cr | 75.2% | 0.34 | 1.07 | 27.5% |
| FY2025 | ₹0Cr | ₹0Cr | 70.3% | 0.40 | 1.08 | 30.3% |
| FY2026 | ₹0Cr | ₹0Cr | 69.3% | 0.41 | 1.08 | 31.0% |
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.