Fundamental Glossary / Profitability Metrics
PBT (Profit Before Tax)
Profit after operating costs and interest, before income tax. The Indian-statement name for earnings before tax.
Formula
Revenue - expenses other than tax. Exceptional items may sit inside or be shown just above this line. Read the face of the statement.
What it means
PBT is the bridge between operating performance and the profit shareholders keep. Two companies with the same PBT can report very different PAT if their tax rates differ.
Indian results presentations often lead with PBT and then show tax and PAT underneath. Use the same definition each quarter.
How to read it
A rising PBT with a falling PBT margin means costs grew faster than sales, even if the rupee profit is up. Margins tell you the quality of the growth.
What to watch
Exceptional items are sometimes parked just above or below PBT. Confirm whether the headline PBT is before or after those items before you compare years.
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.