DuPont Decomposition
Why does OFSS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
33.7% = 34.4% × 0.77 × 1.27
Latest: FY2026
Profitability
Net Margin
34.4%
31.7% →34.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.61x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.24x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.5 pp over 4 years. Driven by net margin improving (31.7% → 34.4%), asset turnover improving (0.61x → 0.77x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 31.7% | 0.61 | 1.24 | 24.2% |
| FY2024 | ₹0Cr | ₹0Cr | 34.8% | 0.64 | 1.26 | 28.2% |
| FY2025 | ₹0Cr | ₹0Cr | 34.8% | 0.68 | 1.21 | 28.5% |
| FY2026 | ₹0Cr | ₹0Cr | 34.4% | 0.77 | 1.27 | 33.7% |
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.