DuPont Decomposition
Why does RTNINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-21.5% = -2.2% × 2.71 × 3.61
Latest: FY2026
Profitability
Net Margin
-2.2%
3958.2% →-2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.71x
0.02x →2.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.61x
1.30x →3.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 100.8 pp over 5 years. Driven by net margin declining (3958.2% → -2.2%), asset turnover improving (0.02x → 2.71x), leverage rising (1.30x → 3.61x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3958.2% | 0.02 | 1.30 | 79.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -7.0% | 1.85 | 5.36 | -69.5% |
| FY2024 | ₹0Cr | ₹0Cr | 7.7% | 2.05 | 3.21 | 50.8% |
| FY2025 | ₹0Cr | ₹0Cr | 1.3% | 2.54 | 2.86 | 9.2% |
| FY2026 | ₹0Cr | ₹-0Cr | -2.2% | 2.71 | 3.61 | -21.5% |
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.