DuPont Decomposition
Why does INDGN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.8% = 11.4% × 0.76 × 1.47
Latest: FY2026
Profitability
Net Margin
11.4%
9.9% →11.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
1.23x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
1.77x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.8 pp over 5 years. Driven by net margin improving (9.9% → 11.4%), asset turnover declining (1.23x → 0.76x), leverage falling (1.77x → 1.47x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.9% | 1.23 | 1.77 | 21.6% |
| FY2023 | ₹0Cr | ₹0Cr | 11.5% | 1.05 | 2.07 | 25.0% |
| FY2024 | ₹0Cr | ₹0Cr | 13.0% | 1.02 | 1.78 | 23.6% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 0.85 | 1.27 | 15.6% |
| FY2026 | ₹0Cr | ₹0Cr | 11.4% | 0.76 | 1.47 | 12.8% |
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.