DuPont Decomposition

Why does WAAREEINDO earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

85.9% = 36.3% × 1.97 × 1.20

Latest: FY2026

Profitability

Net Margin

36.3%

16.9% →36.3%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

1.97x

1.35x →1.97x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.20x

5.96x →1.20x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 49.6 pp over 2 years. Driven by net margin improving (16.9% → 36.3%), asset turnover improving (1.35x → 1.97x), leverage falling (5.96x → 1.20x).

Historical Decomposition

Last 2 years

Year	Revenue	PAT	Net Margin	Asset TO	Leverage	ROE
FY2025	₹0Cr	₹0Cr	16.9%	1.35	5.96	135.6%
FY2026	₹0Cr	₹0Cr	36.3%	1.97	1.20	85.9%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.