DuPont Decomposition
Why does INDIANB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.6% = 31.0% × 0.04 × 12.39
Latest: FY2026
Profitability
Net Margin
31.0%
17.2% →31.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.04x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
12.39x
15.00x →12.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.4 pp over 5 years. Driven by net margin improving (17.2% → 31.0%), leverage falling (15.00x → 12.39x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.2% | 0.04 | 15.00 | 9.2% |
| FY2023 | ₹0Cr | ₹0Cr | 19.9% | 0.04 | 14.41 | 11.3% |
| FY2024 | ₹0Cr | ₹0Cr | 26.4% | 0.04 | 13.21 | 14.0% |
| FY2025 | ₹0Cr | ₹0Cr | 32.0% | 0.04 | 12.26 | 15.8% |
| FY2026 | ₹0Cr | ₹0Cr | 31.0% | 0.04 | 12.39 | 14.6% |
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.