DuPont Decomposition
Why does KARURVYSYA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.8% = 35.8% × 0.05 × 9.68
Latest: FY2026
Profitability
Net Margin
35.8%
19.3% →35.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.05x
0.04x →0.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
9.68x
10.54x →9.68x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.9 pp over 5 years. Driven by net margin improving (19.3% → 35.8%), leverage falling (10.54x → 9.68x). 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 | 19.3% | 0.04 | 10.54 | 8.9% |
| FY2023 | ₹0Cr | ₹0Cr | 26.4% | 0.05 | 10.51 | 12.9% |
| FY2024 | ₹0Cr | ₹0Cr | 32.3% | 0.05 | 10.50 | 16.0% |
| FY2025 | ₹0Cr | ₹0Cr | 31.9% | 0.05 | 10.01 | 16.3% |
| FY2026 | ₹0Cr | ₹0Cr | 35.8% | 0.05 | 9.68 | 17.8% |
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.