Fundamental Glossary / Financial Statements
Profit and Loss Statement (P&L)
The statement of revenue, expenses, and profit over a period.
Formula
Revenue - expenses = profit. The Indian Schedule III format runs from revenue from operations down to total comprehensive income.
What it means
The P&L explains performance between two balance-sheet dates. It is where sales, costs, interest, tax, and profit are reported.
Other comprehensive income, such as some fair-value and foreign-currency movements, can sit outside the profit line and still change equity. Read both.
How to read it
Start at revenue, then gross profit, operating profit, profit before tax, and profit after tax. The line that breaks the story is the one that deserves the notes.
What to watch
A clean P&L can still hide channel stuffing, capitalised costs, and optimistic revenue recognition. The cash flow statement is the cross-check.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.