DuPont Decomposition
Why does JUSTDIAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.7% = 41.0% × 0.20 × 1.18
Latest: FY2026
Profitability
Net Margin
41.0%
19.3% →41.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.20x
0.19x →0.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.18x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.3 pp over 4 years. Driven by net margin improving (19.3% → 41.0%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 19.3% | 0.19 | 1.18 | 4.4% |
| FY2024 | ₹0Cr | ₹0Cr | 34.8% | 0.21 | 1.21 | 9.0% |
| FY2025 | ₹0Cr | ₹0Cr | 51.2% | 0.21 | 1.20 | 12.7% |
| FY2026 | ₹0Cr | ₹0Cr | 41.0% | 0.20 | 1.18 | 9.7% |
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.