Profit After Tax (PAT)

Profit After Tax (PAT), also known as Net Profit, is the final measure of a company's earnings remaining after all expenses—including operating costs, interest payments, depreciation, and income taxes—have been deducted from total revenue. It is the bottom line of the income statement and the ultimate measure of corporate profitability. PAT drives Earnings Per Share (EPS) and is used to calculate key valuation multiples like the Price-to-Earnings (P/E) ratio. Consistent PAT growth is a hallmark of quality businesses and a primary driver of long-term stock price appreciation.