DuPont Decomposition
Why does INDOCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-10.1% = -5.3% × 0.69 × 2.76
Latest: FY2026
Profitability
Net Margin
-5.3%
10.3% →-5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
1.01x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.76x
1.64x →2.76x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 27.2 pp over 5 years. Driven by net margin declining (10.3% → -5.3%), asset turnover declining (1.01x → 0.69x), leverage rising (1.64x → 2.76x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.3% | 1.01 | 1.64 | 17.1% |
| FY2023 | ₹0Cr | ₹0Cr | 8.7% | 0.99 | 1.61 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.5% | 0.83 | 1.93 | 8.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -4.5% | 0.68 | 2.38 | -7.2% |
| FY2026 | ₹0Cr | ₹-0Cr | -5.3% | 0.69 | 2.76 | -10.1% |
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.