DuPont Decomposition
Why does INA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.8% = 9.3% × 1.00 × 2.67
Latest: FY2026
Profitability
Net Margin
9.3%
3.2% →9.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.00x
3.08x →1.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.67x
3.14x →2.67x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.6 pp over 5 years. Driven by net margin improving (3.2% → 9.3%), asset turnover declining (3.08x → 1.00x), leverage falling (3.14x → 2.67x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.2% | 3.08 | 3.14 | 31.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 1.75 | 3.01 | 20.2% |
| FY2024 | ₹0Cr | ₹0Cr | 7.5% | 2.80 | 2.43 | 51.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.4% | 1.57 | 1.37 | 20.4% |
| FY2026 | ₹0Cr | ₹0Cr | 9.3% | 1.00 | 2.67 | 24.8% |
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.