DuPont Decomposition
Why does KHANDSE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-4.6% = -16.1% × 0.19 × 1.46
Latest: FY2026
Profitability
Net Margin
-16.1%
1.9% →-16.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.13x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
2.35x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.2 pp over 5 years. Driven by net margin declining (1.9% → -16.1%), leverage falling (2.35x → 1.46x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 0.13 | 2.35 | 0.6% |
| FY2023 | ₹0Cr | ₹0Cr | 7.1% | 0.14 | 1.48 | 1.5% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 0.18 | 1.60 | 0.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.4% | 0.22 | 1.50 | -2.8% |
| FY2026 | ₹0Cr | ₹-0Cr | -16.1% | 0.19 | 1.46 | -4.6% |
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.