DuPont Decomposition
Why does KRYSTAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.9% = 5.0% × 1.52 × 1.69
Latest: FY2026
Profitability
Net Margin
5.0%
4.8% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.52x
1.37x →1.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
2.47x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.1 pp over 5 years. Driven by asset turnover improving (1.37x → 1.52x), leverage falling (2.47x → 1.69x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 1.37 | 2.47 | 16.0% |
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 2.06 | 2.10 | 16.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.3% | 1.59 | 1.72 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.2% | 1.59 | 1.74 | 14.3% |
| FY2026 | ₹0Cr | ₹0Cr | 5.0% | 1.52 | 1.69 | 12.9% |
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.