Financial StatementsBeginner

PAT

Profit After Tax, Net profit

The profit left for shareholders after every expense, interest and tax.

Detailed explanation

PAT is the bottom line of the income statement. It is the earnings figure used for EPS and the P/E ratio, and it is the pool from which dividends are paid.

Formula

PAT = Profit before tax (PBT) − Tax expense

Example

PBT ₹70 cr − tax ₹18 cr = PAT ₹52 cr.

Why it matters

It is what the company actually earned for its owners in the period.

Key points

  • EPS = PAT ÷ shares outstanding.
  • Check for one-off gains that inflate PAT.
  • PAT margin = PAT ÷ Revenue.

Related terms

PBTEPSNet Profit Margin

More in Financial Statements

Income StatementRevenueCost of Goods SoldGross MarginEBITDAEBIT

Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.