DuPont Decomposition
Why does INDUSTOWER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.0% = 22.0% × 0.46 × 1.80
Latest: FY2026
Profitability
Net Margin
22.0%
23.0% →22.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.46x
0.58x →0.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
2.17x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.8 pp over 5 years. Driven by asset turnover declining (0.58x → 0.46x), leverage falling (2.17x → 1.80x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 23.0% | 0.58 | 2.17 | 28.8% |
| FY2023 | ₹0Cr | ₹0Cr | 7.2% | 0.61 | 2.21 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 21.1% | 0.51 | 2.07 | 22.3% |
| FY2025 | ₹0Cr | ₹0Cr | 33.0% | 0.48 | 1.94 | 30.6% |
| FY2026 | ₹0Cr | ₹0Cr | 22.0% | 0.46 | 1.80 | 18.0% |
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.