DuPont Decomposition
Why does NAHARSPING earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.4% = 0.7% × 1.19 × 1.78
Latest: FY2026
Profitability
Net Margin
0.7%
14.4% →0.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.19x
1.18x →1.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.78x
1.84x →1.78x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 29.9 pp over 5 years. Driven by net margin declining (14.4% → 0.7%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.4% | 1.18 | 1.84 | 31.4% |
| FY2023 | ₹0Cr | ₹0Cr | 4.0% | 1.09 | 1.62 | 7.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.7% | 1.02 | 1.95 | -3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 1.19 | 1.85 | 0.8% |
| FY2026 | ₹0Cr | ₹0Cr | 0.7% | 1.19 | 1.78 | 1.4% |
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.