DuPont Decomposition
Why does INFY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
33.9% = 16.4% × 1.23 × 1.68
Latest: FY2026
Profitability
Net Margin
16.4%
16.4% →16.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.23x
1.19x →1.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
1.67x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.4 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 16.4% | 1.19 | 1.67 | 32.5% |
| FY2024 | ₹0Cr | ₹0Cr | 17.1% | 1.12 | 1.56 | 30.0% |
| FY2025 | ₹0Cr | ₹0Cr | 16.4% | 1.11 | 1.55 | 28.2% |
| FY2026 | ₹0Cr | ₹0Cr | 16.4% | 1.23 | 1.68 | 33.9% |
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.