DuPont Decomposition
Why does MOBIKWIK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-11.5% = -5.5% × 0.79 × 2.61
Latest: FY2026
Profitability
Net Margin
-5.5%
-24.3% →-5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
0.63x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.61x
3.86x →2.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 47.7 pp over 5 years. Driven by net margin improving (-24.3% → -5.5%), asset turnover improving (0.63x → 0.79x), leverage falling (3.86x → 2.61x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -24.3% | 0.63 | 3.86 | -59.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -15.5% | 0.76 | 5.01 | -58.7% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 1.02 | 5.26 | 8.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -10.4% | 0.86 | 2.31 | -20.6% |
| FY2026 | ₹0Cr | ₹-0Cr | -5.5% | 0.79 | 2.61 | -11.5% |
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.