DuPont Decomposition
Why does INDIAMART earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.8% = 30.3% × 0.34 × 1.93
Latest: FY2026
Profitability
Net Margin
30.3%
39.5% →30.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.26x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.93x
1.57x →1.93x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.9 pp over 5 years. Driven by net margin declining (39.5% → 30.2%), leverage rising (1.57x → 1.93x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 39.5% | 0.26 | 1.57 | 15.9% |
| FY2023 | ₹0Cr | ₹0Cr | 28.8% | 0.29 | 1.67 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 27.9% | 0.35 | 1.99 | 19.2% |
| FY2025 | ₹0Cr | ₹0Cr | 39.7% | 0.34 | 1.89 | 25.2% |
| FY2026 | ₹0Cr | ₹0Cr | 30.3% | 0.34 | 1.93 | 19.8% |
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.