Profit Before Tax (PBT)

Profit Before Tax (PBT) is a financial metric that shows a company's earnings before paying income taxes. It reflects the profitability of the business after accounting for all expenses except taxes.

In simple terms:

PBT = Revenue – Operating Costs – Interest – Depreciation (excluding taxes)

Key Importance:

• Helps assess core business profitability.
• Used for comparing companies regardless of tax rates.
• Essential for calculating net profit after taxes.

Example:
If a company earns ₹10 crore in revenue and spends ₹7 crore on all costs except tax, its PBT is ₹3 crore.