DuPont Decomposition
Why does AXISBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.3% = 29.9% × 0.05 × 9.05
Latest: FY2026
Profitability
Net Margin
29.9%
27.6% →29.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.05x
0.04x →0.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
9.05x
10.11x →9.05x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~12%. Driven by net margin improving (27.6% → 29.9%), leverage falling (10.11x → 9.05x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 27.6% | 0.04 | 10.11 | 11.9% |
| FY2023 | ₹0Cr | ₹0Cr | 17.3% | 0.05 | 10.36 | 8.3% |
| FY2024 | ₹0Cr | ₹0Cr | 34.5% | 0.05 | 9.67 | 16.8% |
| FY2025 | ₹0Cr | ₹0Cr | 33.0% | 0.05 | 8.85 | 15.0% |
| FY2026 | ₹0Cr | ₹0Cr | 29.9% | 0.05 | 9.05 | 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.