DuPont Decomposition
Why does ONGC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 6.3% × 0.84 × 2.13
Latest: FY2026
Profitability
Net Margin
6.3%
9.3% →6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.84x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
2.25x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.3 pp over 5 years. Driven by net margin declining (9.3% → 6.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.3% | 0.84 | 2.25 | 17.5% |
| FY2023 | ₹0.1Cr | ₹0Cr | 5.8% | 0.98 | 2.26 | 12.9% |
| FY2024 | ₹0.1Cr | ₹0Cr | 8.2% | 0.81 | 2.19 | 14.5% |
| FY2025 | ₹0.1Cr | ₹0Cr | 5.5% | 0.87 | 2.21 | 10.6% |
| FY2026 | ₹0.1Cr | ₹0Cr | 6.3% | 0.84 | 2.13 | 11.1% |
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.