DuPont Decomposition
Why does QPOWER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.4% = 12.8% × 0.85 × 2.05
Latest: FY2026
Profitability
Net Margin
12.8%
9.4% →12.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.69x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.05x
2.73x →2.05x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.5 pp over 5 years. Driven by net margin improving (9.4% → 12.8%), asset turnover improving (0.69x → 0.85x), leverage falling (2.73x → 2.05x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.4% | 0.69 | 2.73 | 17.9% |
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 0.79 | 2.79 | 18.4% |
| FY2024 | ₹0Cr | ₹0Cr | 12.8% | 0.81 | 2.34 | 24.4% |
| FY2025 | ₹0Cr | ₹0Cr | 19.6% | 0.42 | 1.92 | 15.6% |
| FY2026 | ₹0Cr | ₹0Cr | 12.8% | 0.85 | 2.05 | 22.4% |
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.