How to read a quarterly result: revenue, EBITDA, PAT and EPS line by line

A quarterly results statement looks dense, but it is a list that runs from the top line to the bottom line. Once you know the order, any company’s statement reads the same way. The example below uses a fictional company, Example Ltd. Its numbers are illustrative, chosen so that each line follows from the ones above it.

The statement, line by line

Line (₹ Cr)	Example Ltd, Q1
Revenue from operations	1,000
Other income	20
Total income	1,020
Materials consumed	450
Employee costs	150
Finance costs	30
Depreciation and amortisation	40
Other expenses	150
Total expenses	820
Profit before tax (PBT)	200
Tax	50
Profit after tax (PAT)	150
Earnings per share (10 crore shares)	₹15.00

1. Revenue from operations

This is what the company earned from its main business: 1,000 in the example. It does not include other income. Read this first, because everything below is measured against it.

2. Other income

Interest on deposits, gains on investments and similar items: 20 in the example. It is added to revenue to reach total income, but it is not the company’s core business. A large other income can flatter profit, so note how much of profit it explains.

3. Expenses

Total expenses of 820 are the sum of the lines under it. The line to watch is any one that moved a lot compared with last year.

4. EBITDA

EBITDA is earnings before interest, tax, depreciation and amortisation. You can reach it from the top or from the bottom:

• From the top: revenue minus materials, employee costs and other expenses = 1,000 − 750 = 250.
• From the bottom: PBT + finance costs + depreciation − other income = 200 + 30 + 40 − 20 = 250.

The EBITDA margin is EBITDA divided by revenue: 250 / 1,000 = 25.0%.

EBITDA is not a line defined by the accounting standards, so each company defines its own. Some add back further items; for example, one company’s investor letter defines an “adjusted EBITDA” that also adds back share-based compensation. When you compare two companies, compare how each defines it.

5. Profit before tax and tax

PBT is total income minus total expenses: 1,020 − 820 = 200. Tax is then deducted (50 in the example, an effective rate of 25%).

6. Profit after tax (PAT)

PAT is what remains for the owners: 200 − 50 = 150. The PAT margin is 150 / 1,000 = 15.0%. Some statements show a further split into profit attributable to the parent’s shareholders and to minority holders in subsidiaries.

7. Earnings per share (EPS)

EPS is profit attributable to shareholders divided by the number of shares: 150 crore / 10 crore shares = ₹15.00 for the quarter. When a company issues bonus shares, the number of shares rises, and the EPS of earlier periods is restated so that it stays comparable. One company’s results statement notes exactly this for its prior-year quarter.

What to look for beyond the lines

• Exceptional items: one-off gains or charges that appear between total income and PBT. They can move profit without any change in the business.
• Margins: revenue can grow while margins shrink, and profit falls. Compute EBITDA and PAT margin for this quarter and for the comparison quarter.
• Other comprehensive income: shown separately; it is not part of PAT.

Common mistakes

• Reading revenue and profit growth as if they were the same thing.
• Comparing a standalone figure with a consolidated one.
• Ignoring the unit (crore, million, billion).
• Treating EBITDA as identical across companies.

Next: year on year vs quarter on quarter, the two ways to compare, and how they differ. Back to the complete guide.