DuPont Decomposition

Why does SYMPHONY earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

-25.9% = -12.5% × 1.10 × 1.89

Latest: FY2026

Profitability

Net Margin

-12.5%

11.6% →-12.5%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

1.10x

0.76x →1.10x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.89x

1.63x →1.89x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 40.2 pp over 5 years. Driven by net margin declining (11.6% → -12.5%), asset turnover improving (0.76x → 1.10x), leverage rising (1.63x → 1.89x).

Historical Decomposition

Last 5 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr0Cr11.6%0.761.6314.3%
FY20230Cr0Cr9.8%0.841.5913.2%
FY20240Cr0Cr12.8%0.951.6319.8%
FY20250Cr0Cr13.5%1.181.7528.0%
FY20260Cr-0Cr-12.5%1.101.89-25.9%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.

SYMPHONY DuPont Analysis — ROE -25.9% | YieldIQ