DuPont Decomposition
Why does INDIAGLYCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.0% = 7.0% × 0.65 × 2.22
Latest: FY2026
Profitability
Net Margin
7.0%
12.1% →7.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.61x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.22x
2.58x →2.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.0 pp over 5 years. Driven by net margin declining (12.1% → 7.0%), leverage falling (2.58x → 2.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.1% | 0.61 | 2.58 | 19.0% |
| FY2023 | ₹0Cr | ₹0Cr | 4.8% | 0.53 | 2.56 | 6.6% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 0.58 | 2.74 | 8.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.61 | 2.74 | 10.2% |
| FY2026 | ₹0Cr | ₹0Cr | 7.0% | 0.65 | 2.22 | 10.0% |
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.