Other income

A line that sits below EBIT and above PBT, covering anything earned that wasn't from the core business. Two questions to ask whenever you see a high "other income" line:

1. What's in it? 2. Will it repeat next quarter?

What typically sits here

• Interest on cash and investments - the most stable kind. A company sitting on ₹500 cr cash earns ₹35 cr at 7%; that's recurring, predictable.
• Dividend from subsidiaries / mutual funds - also fairly stable.
• Forex gains - sharp swings; not core-business strength, just the rupee moving.
• Sale of property / land - almost always one-time. A big one-time gain can entirely flatter a weak operating quarter.
• Mark-to-market gains on listed investments - moves with stock prices, not the business.
• Reversal of provisions / write-offs - past pessimism being undone, not new profit.

Why it matters

Look at the operating profit (EBIT) growth and the net profit (PAT) growth separately. If PAT grew 30% but EBIT grew only 5%, the difference probably came from other income. That's not a quality earnings story - it's a one-off boost.