DuPont Decomposition
Why does NIPPOBATRY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-8.7% = -5.8% × 1.05 × 1.42
Latest: FY2026
Profitability
Net Margin
-5.8%
1.4% →-5.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
1.11x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.42x
2.13x →1.42x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.0 pp over 5 years. Driven by net margin declining (1.4% → -5.8%), leverage falling (2.13x → 1.42x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 1.11 | 2.13 | 3.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.0% | 1.11 | 2.22 | -2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.5% | 1.07 | 2.54 | 4.1% |
| FY2025 | ₹0Cr | ₹0Cr | 26.5% | 0.65 | 1.65 | 28.3% |
| FY2026 | ₹0Cr | ₹-0Cr | -5.8% | 1.05 | 1.42 | -8.7% |
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.