What is difference between EBITDA and PAT Margin?

EBITDA and PAT margin are the company's earnings in different phases.

Both EBITDA and PAT margin indicate the profitability position of the company and efficiency of the firm in managing the expenses. EBITDA refers to the profit at the operating level, while PAT, i.e. profit after tax, indicates the final profit of the company. EBITDA only takes into account operating expenses, while PAT is calculated after deducting all expenses, financing costs, depreciation, amortisation and taxes. The PAT margin is the percentage of profit after tax as compared to revenue from operations.

  SME IPO Enquiry