DuPont Decomposition
Why does IGIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
37.7% = 43.3% × 0.70 × 1.24
Latest: FY2026
Profitability
Net Margin
43.3%
50.0% →43.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
1.18x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.21x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 33.6 pp over 3 years. Driven by net margin declining (50.0% → 43.2%), asset turnover declining (1.18x → 0.70x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 50.0% | 1.18 | 1.21 | 71.3% |
| FY2025 | ₹0Cr | ₹0Cr | 40.6% | 0.70 | 1.42 | 40.2% |
| FY2026 | ₹0Cr | ₹0Cr | 43.3% | 0.70 | 1.24 | 37.7% |
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.