Fundamental Glossary / Growth Metrics
Profit Growth
The percentage change in profit, usually profit after tax unless a different line is named.
Formula
(This period profit - last period profit) / last period profit.
What it means
Profit growth is what remains after the top line has paid the costs. It can be faster than revenue growth when margins expand, and slower when they compress.
Name the line. Growth in EBITDA, PBT, and PAT are three different claims.
How to read it
The attractive pattern is profit growth at least as fast as revenue, funded by operations rather than by a lower tax rate or a one-time gain.
What to watch
A small base makes any rupee increase look like a huge percentage. Also, profit that swings from a tiny loss to a tiny profit is not a useful growth rate.
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.