DuPont Decomposition
Why does MBAPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.3% = 8.0% × 1.11 × 3.06
Latest: FY2026
Profitability
Net Margin
8.0%
20.1% →8.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
0.65x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.06x
2.14x →3.06x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~27%. Driven by net margin declining (20.1% → 8.0%), asset turnover improving (0.65x → 1.11x), leverage rising (2.14x → 3.06x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.1% | 0.65 | 2.14 | 27.8% |
| FY2023 | ₹0Cr | ₹0Cr | 24.4% | 0.68 | 2.26 | 37.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.0% | 0.61 | 2.29 | 7.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.4% | 1.12 | 2.34 | 14.2% |
| FY2026 | ₹0Cr | ₹0Cr | 8.0% | 1.11 | 3.06 | 27.3% |
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.