DuPont Decomposition
Why does NIMBSPROJ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-24.5% = -29.8% × 0.19 × 4.37
Latest: FY2026
Profitability
Net Margin
-29.8%
35.3% →-29.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.16x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.37x
4.00x →4.37x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 47.2 pp over 2 years. Driven by net margin declining (35.3% → -29.8%), leverage rising (4.00x → 4.37x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 35.3% | 0.16 | 4.00 | 22.8% |
| FY2026 | ₹0Cr | ₹-0Cr | -29.8% | 0.19 | 4.37 | -24.5% |
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.