DuPont Decomposition
Why does KSHITIJPOL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.6% = 7.9% × 0.50 × 1.41
Latest: FY2026
Profitability
Net Margin
7.9%
1.1% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.96x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
2.20x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.4 pp over 5 years. Driven by net margin improving (1.1% → 7.9%), asset turnover declining (0.96x → 0.50x), leverage falling (2.20x → 1.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 0.96 | 2.20 | 2.3% |
| FY2023 | ₹0Cr | ₹0Cr | 1.1% | 0.69 | 2.20 | 1.6% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 0.80 | 3.66 | 8.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -20.7% | 0.74 | 1.54 | -23.7% |
| FY2026 | ₹0Cr | ₹0Cr | 7.9% | 0.50 | 1.41 | 5.6% |
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.