EBIT

EBIT is the profit a company earns from its business before paying interest and taxes.

EBIT (Earnings Before Interest and Taxes) measures a company’s profitability from its core operations.

It shows how much profit the business generates before considering:

Interest on loans

Taxes

This helps investors understand how well the company is performing operationally.

Example:

If a company earns ₹10 crore in revenue and spends ₹7 crore on expenses, its EBIT will be ₹3 crore (before interest and taxes are deducted).