DuPont Decomposition

Why does MANYAVAR earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

19.1% = 26.2% × 0.50 × 1.45

Latest: FY2026

Profitability

Net Margin

26.2%

30.3% →26.2%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.50x

0.59x →0.50x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.45x

1.63x →1.45x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 10.0 pp over 5 years. Driven by net margin declining (30.3% → 26.2%).

Historical Decomposition

Last 5 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr0Cr30.3%0.591.6329.1%
FY20230Cr0Cr31.7%0.621.5530.6%
FY20240Cr0Cr30.3%0.541.5725.9%
FY20250Cr0Cr28.0%0.501.5421.8%
FY20260Cr0Cr26.2%0.501.4519.1%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.

MANYAVAR DuPont Analysis — ROE 19.1% | YieldIQ