DuPont Decomposition
Why does MAHABANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.1% = 44.4% × 0.04 × 12.87
Latest: FY2026
Profitability
Net Margin
44.4%
25.4% →44.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.04x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
12.87x
16.96x →12.87x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.6 pp over 4 years. Driven by net margin improving (25.4% → 44.4%), leverage falling (16.96x → 12.87x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 25.4% | 0.04 | 16.96 | 16.5% |
| FY2024 | ₹0Cr | ₹0Cr | 34.0% | 0.04 | 15.47 | 20.5% |
| FY2025 | ₹0Cr | ₹0Cr | 40.3% | 0.04 | 12.87 | 19.3% |
| FY2026 | ₹0Cr | ₹0Cr | 44.4% | 0.04 | 12.87 | 21.1% |
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.