DuPont Decomposition
Why does DEVYANI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.5% = -0.7% × 0.83 × 4.38
Latest: FY2026
Profitability
Net Margin
-0.7%
7.6% →-0.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
0.91x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.38x
3.30x →4.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 25.3 pp over 5 years. Driven by net margin declining (7.6% → -0.7%), leverage rising (3.30x → 4.38x). 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 | 7.6% | 0.91 | 3.30 | 22.8% |
| FY2023 | ₹0Cr | ₹0Cr | 8.9% | 1.00 | 3.08 | 27.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 0.72 | 4.67 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 0.2% | 0.93 | 4.88 | 0.8% |
| FY2026 | ₹0Cr | ₹-0Cr | -0.7% | 0.83 | 4.38 | -2.5% |
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.