Formula
(Ending profit / starting profit) ^ (1 / years) - 1. The start and end must both be positive.
What it means
Profit CAGR summarises how fast the bottom line compounded. It is meaningful only when both ends are profits. A loss at either end breaks the formula.
State whether the profit is PAT, PBT, or operating profit.
How to read it
Profit CAGR above revenue CAGR means margins improved over the window. The reverse means growth got more expensive.
What to watch
One exceptional year at the end dominates the rate. Recompute without it before you treat the CAGR as the business's speed.
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.