DuPont Decomposition
Why does IIFLCAPS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.3% = 28.3% × 0.21 × 3.12
Latest: FY2026
Profitability
Net Margin
28.3%
29.1% →28.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.21x
0.17x →0.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.12x
5.11x →3.12x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.6 pp over 5 years. Driven by leverage falling (5.11x → 3.12x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 29.1% | 0.17 | 5.11 | 25.9% |
| FY2023 | ₹0Cr | ₹0Cr | 21.8% | 0.22 | 3.88 | 18.5% |
| FY2024 | ₹0Cr | ₹0Cr | 28.0% | 0.23 | 4.41 | 28.7% |
| FY2025 | ₹0Cr | ₹0Cr | 35.9% | 0.25 | 3.17 | 28.4% |
| FY2026 | ₹0Cr | ₹0Cr | 28.3% | 0.21 | 3.12 | 18.3% |
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.