DuPont Decomposition
Why does SHAREINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.3% = 53.6% × 0.13 × 1.74
Latest: FY2026
Profitability
Net Margin
53.6%
24.1% →53.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.58x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.74x
3.20x →1.74x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 32.8 pp over 5 years. Driven by net margin improving (24.1% → 53.6%), asset turnover declining (0.58x → 0.13x), leverage falling (3.20x → 1.74x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 24.1% | 0.58 | 3.20 | 45.0% |
| FY2023 | ₹0Cr | ₹0Cr | 31.6% | 0.57 | 1.83 | 32.7% |
| FY2024 | ₹0Cr | ₹0Cr | 31.0% | 0.48 | 1.64 | 24.4% |
| FY2025 | ₹0Cr | ₹0Cr | 58.4% | 0.15 | 1.62 | 14.0% |
| FY2026 | ₹0Cr | ₹0Cr | 53.6% | 0.13 | 1.74 | 12.3% |
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.