DuPont Decomposition
Why does KPITTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.0% = 9.9% × 0.89 × 2.05
Latest: FY2026
Profitability
Net Margin
9.9%
11.3% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
1.04x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.05x
1.78x →2.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.9 pp over 5 years. Driven by net margin declining (11.3% → 9.9%), asset turnover declining (1.04x → 0.89x), leverage rising (1.78x → 2.05x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.3% | 1.04 | 1.78 | 20.9% |
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 0.99 | 2.06 | 23.1% |
| FY2024 | ₹0Cr | ₹0Cr | 12.2% | 1.17 | 1.94 | 27.7% |
| FY2025 | ₹0Cr | ₹0Cr | 14.4% | 1.16 | 1.73 | 28.8% |
| FY2026 | ₹0Cr | ₹0Cr | 9.9% | 0.89 | 2.05 | 18.0% |
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.