DuPont Decomposition
Why does NAUKRI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.8% = 44.1% × 0.07 × 1.25
Latest: FY2026
Profitability
Net Margin
44.1%
803.0% →44.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.08x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.19x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 70.2 pp over 5 years. Driven by net margin declining (803.0% → 44.1%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 803.0% | 0.08 | 1.19 | 74.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -4.6% | 0.14 | 1.24 | -0.8% |
| FY2024 | ₹0Cr | ₹0Cr | 22.7% | 0.07 | 1.19 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 33.8% | 0.07 | 1.23 | 2.8% |
| FY2026 | ₹0Cr | ₹0Cr | 44.1% | 0.07 | 1.25 | 3.8% |
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.