DuPont Decomposition
Why does PNBHOUSING earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.9% = 65.6% × 0.04 × 4.87
Latest: FY2026
Profitability
Net Margin
65.6%
41.2% →65.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.04x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.87x
6.07x →4.87x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.4 pp over 4 years. Driven by net margin improving (41.2% → 65.6%), leverage falling (6.07x → 4.87x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 41.2% | 0.04 | 6.07 | 9.5% |
| FY2024 | ₹0Cr | ₹0Cr | 54.2% | 0.04 | 4.84 | 10.1% |
| FY2025 | ₹0Cr | ₹0Cr | 61.9% | 0.04 | 4.89 | 11.5% |
| FY2026 | ₹0Cr | ₹0Cr | 65.6% | 0.04 | 4.87 | 11.9% |
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.