Profit & Loss (P&L) - overview

The P&L tells you whether the business earned a profit or made a loss during a specific period - a quarter or a full year. It reads top-to-bottom like a waterfall, with revenue at the top and net profit at the bottom.

The standard structure

Here's what every Indian listed company's P&L looks like, simplified, for one quarter:

Revenue                              500   ← top line: what the company sold
Cost of materials                  (-180)  ← raw materials, components
Employee cost                       (-90)  ← salaries, benefits
Other operating expenses            (-80)  ← rent, electricity, marketing
─────────────────────────────────────────
EBITDA                              150    ← operating profit before D, I, T
Depreciation & amortization         (-30)  ← write-off of past investments
─────────────────────────────────────────
Operating profit (EBIT)             120
Other income                         +10   ← interest on cash, dividends
Interest expense                    (-15)  ← cost of debt
─────────────────────────────────────────
Profit before tax                   115
Tax                                 (-29)
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Net profit (PAT)                     86    ← bottom line