Fundamental Glossary / Profitability Metrics
EBT (Earnings Before Tax)
Profit after all expenses including interest, and before the tax charge.
Formula
EBIT - interest expense + interest income, before tax. On many Indian statements this is profit before tax.
What it means
EBT is the last line before the government's share. It shows whether the capital structure, through interest, has consumed the operating profit.
In Indian annual reports, profit before tax is the label you will usually see. EBT is the same idea.
How to read it
If EBIT is healthy and EBT is thin, interest is the reason. That is a financing story, not an operating one. The fix is the debt load or the rate, not the product.
What to watch
Interest income on surplus cash can inflate EBT for a company that is not really more profitable at the operating level. Separate finance income from finance cost.
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.