DuPont Decomposition
Why does INNOVANA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.0% = 28.8% × 0.36 × 1.34
Latest: FY2026
Profitability
Net Margin
28.8%
36.1% →28.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.37x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.83x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.1 pp over 5 years. Driven by net margin declining (36.1% → 28.8%), leverage falling (1.83x → 1.34x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 36.1% | 0.37 | 1.83 | 24.1% |
| FY2023 | ₹0Cr | ₹0Cr | 34.0% | 0.46 | 1.54 | 24.2% |
| FY2024 | ₹0Cr | ₹0Cr | 40.6% | 0.48 | 1.28 | 25.1% |
| FY2025 | ₹0Cr | ₹0Cr | 42.7% | 0.37 | 1.35 | 21.5% |
| FY2026 | ₹0Cr | ₹0Cr | 28.8% | 0.36 | 1.34 | 14.0% |
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.