DuPont Decomposition
Why does ORBTEXP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.6% = 14.4% × 0.61 × 1.21
Latest: FY2026
Profitability
Net Margin
14.4%
14.3% →14.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
0.45x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.43x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.5 pp over 5 years. Driven by asset turnover improving (0.45x → 0.61x), leverage falling (1.43x → 1.21x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.3% | 0.45 | 1.43 | 9.2% |
| FY2023 | ₹0Cr | ₹0Cr | 17.7% | 0.68 | 1.32 | 15.8% |
| FY2024 | ₹0Cr | ₹0Cr | 17.3% | 0.67 | 1.26 | 14.6% |
| FY2025 | ₹0Cr | ₹0Cr | 18.3% | 0.65 | 1.21 | 14.3% |
| FY2026 | ₹0Cr | ₹0Cr | 14.4% | 0.61 | 1.21 | 10.6% |
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.