DuPont Decomposition
Why does INDUSINDBK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.4% = 3.5% × 0.05 × 8.27
Latest: FY2026
Profitability
Net Margin
3.5%
21.8% →3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.05x
0.05x →0.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.27x
8.37x →8.27x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.7 pp over 5 years. Driven by net margin declining (21.8% → 3.5%). 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 | 21.8% | 0.05 | 8.37 | 10.0% |
| FY2023 | ₹0Cr | ₹0Cr | 29.2% | 0.06 | 8.32 | 13.5% |
| FY2024 | ₹0Cr | ₹0Cr | 30.5% | 0.06 | 8.15 | 14.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.6% | 0.05 | 8.55 | 4.0% |
| FY2026 | ₹0Cr | ₹0Cr | 3.5% | 0.05 | 8.27 | 1.4% |
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.