DuPont Decomposition
Why does GALAXYSURF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.7% = 5.1% × 1.35 × 1.41
Latest: FY2026
Profitability
Net Margin
5.1%
7.2% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.35x
1.40x →1.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.65x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.0 pp over 5 years. Driven by net margin declining (7.2% → 5.1%), leverage falling (1.65x → 1.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.2% | 1.40 | 1.65 | 16.7% |
| FY2023 | ₹0Cr | ₹0Cr | 8.6% | 1.62 | 1.45 | 20.2% |
| FY2024 | ₹0Cr | ₹0Cr | 8.0% | 1.29 | 1.34 | 13.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.2% | 1.22 | 1.47 | 12.9% |
| FY2026 | ₹0Cr | ₹0Cr | 5.1% | 1.35 | 1.41 | 9.7% |
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.