DuPont Decomposition
Why does NAVA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.0% = 18.3% × 0.30 × 1.64
Latest: FY2026
Profitability
Net Margin
18.3%
15.6% →18.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.30x
0.31x →0.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
2.17x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.4 pp over 5 years. Driven by net margin improving (15.6% → 18.3%), leverage falling (2.17x → 1.64x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.6% | 0.31 | 2.17 | 10.4% |
| FY2023 | ₹0Cr | ₹0Cr | 26.4% | 0.31 | 1.85 | 15.4% |
| FY2024 | ₹0Cr | ₹0Cr | 24.8% | 0.39 | 1.40 | 13.7% |
| FY2025 | ₹0Cr | ₹0Cr | 27.4% | 0.35 | 1.48 | 14.3% |
| FY2026 | ₹0Cr | ₹0Cr | 18.3% | 0.30 | 1.64 | 9.0% |
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.