DuPont Decomposition
Why does INDIQUBE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-20.7% = -7.3% × 0.22 × 12.65
Latest: FY2026
Profitability
Net Margin
-7.3%
-41.1% →-7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.23x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
12.65x
28.08x →12.65x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 240.8 pp over 2 years. Driven by net margin improving (-41.1% → -7.3%), leverage falling (28.08x → 12.65x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹-0Cr | -41.1% | 0.23 | 28.08 | -261.4% |
| FY2026 | ₹0Cr | ₹-0Cr | -7.3% | 0.22 | 12.65 | -20.7% |
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.