DuPont Decomposition
Why does WINDLAS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 7.3% × 1.00 × 1.56
Latest: FY2026
Profitability
Net Margin
7.3%
8.2% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.00x
0.94x →1.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.56x
1.24x →1.56x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.8 pp over 5 years. Driven by leverage rising (1.24x → 1.56x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.2% | 0.94 | 1.24 | 9.7% |
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 0.97 | 1.31 | 10.6% |
| FY2024 | ₹0Cr | ₹0Cr | 9.3% | 1.00 | 1.39 | 12.9% |
| FY2025 | ₹0Cr | ₹0Cr | 8.0% | 1.00 | 1.50 | 12.1% |
| FY2026 | ₹0Cr | ₹0Cr | 7.3% | 1.00 | 1.56 | 11.4% |
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.