DuPont Decomposition
Why does PERSISTENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.8% = 12.7% × 1.30 × 1.45
Latest: FY2026
Profitability
Net Margin
12.7%
11.0% →12.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
1.25x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.68x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~24%. Driven by net margin improving (11.0% → 12.7%), leverage falling (1.68x → 1.45x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.0% | 1.25 | 1.68 | 23.2% |
| FY2024 | ₹0Cr | ₹0Cr | 11.1% | 1.32 | 1.50 | 22.1% |
| FY2025 | ₹0Cr | ₹0Cr | 11.7% | 1.37 | 1.38 | 22.2% |
| FY2026 | ₹0Cr | ₹0Cr | 12.7% | 1.30 | 1.45 | 23.8% |
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.