DuPont Decomposition
Why does SPANDANA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-32.8% = -72.4% × 0.15 × 2.93
Latest: FY2026
Profitability
Net Margin
-72.4%
5.0% →-72.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.15x
0.20x →0.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.93x
2.29x →2.93x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 35.1 pp over 5 years. Driven by net margin declining (5.0% → -72.4%), leverage rising (2.29x → 2.93x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.0% | 0.20 | 2.29 | 2.3% |
| FY2023 | ₹0Cr | ₹0Cr | 1.0% | 0.14 | 3.03 | 0.4% |
| FY2024 | ₹0Cr | ₹0Cr | 22.6% | 0.17 | 3.67 | 13.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -47.2% | 0.26 | 3.23 | -39.3% |
| FY2026 | ₹0Cr | ₹-0Cr | -72.4% | 0.15 | 2.93 | -32.8% |
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.