DuPont Decomposition
Why does VADILALIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.2% = 10.3% × 1.18 × 1.50
Latest: FY2026
Profitability
Net Margin
10.3%
6.4% →10.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.18x
1.12x →1.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
2.10x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.2 pp over 5 years. Driven by net margin improving (6.4% → 10.3%), leverage falling (2.10x → 1.50x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.4% | 1.12 | 2.10 | 15.0% |
| FY2023 | ₹0Cr | ₹0Cr | 9.1% | 1.26 | 2.11 | 24.2% |
| FY2024 | ₹0Cr | ₹0Cr | 13.0% | 1.22 | 1.69 | 26.9% |
| FY2025 | ₹0Cr | ₹0Cr | 12.1% | 1.13 | 1.58 | 21.6% |
| FY2026 | ₹0Cr | ₹0Cr | 10.3% | 1.18 | 1.50 | 18.2% |
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.