DuPont Decomposition
Why does KRISHANA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
32.1% = 7.5% × 1.47 × 2.93
Latest: FY2026
Profitability
Net Margin
7.5%
11.6% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.47x
0.40x →1.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.93x
2.22x →2.93x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 21.9 pp over 4 years. Driven by net margin declining (11.6% → 7.5%), asset turnover improving (0.40x → 1.47x), leverage rising (2.22x → 2.93x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.6% | 0.40 | 2.22 | 10.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 0.69 | 2.81 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.4% | 1.31 | 2.70 | 22.6% |
| FY2026 | ₹0Cr | ₹0Cr | 7.5% | 1.47 | 2.93 | 32.1% |
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.