Stock Market Basics · Lesson 8 of 14 · Updated October 2026 · 7 min read
Every listed company in India reports its results every quarter. Learning to read them is the single biggest step from following tips to understanding what you own. Kosh’s picks only improved once he learnt this.
In short: Check four things: is revenue growing, are margins holding, is net profit growing, and does management explain the numbers. Compare with the same quarter last year (YoY), not just the last quarter.
Where to find results
Results are filed with the stock exchanges and published on the company’s investor relations page. Look for the results press release and the investor presentation, which explains the numbers in plain language.
The numbers that matter
| Line | What it means | What to look for |
|---|---|---|
| Revenue (income from operations) | Money earned from selling products or services | Steady growth |
| EBITDA | Profit from operations before interest, tax, depreciation and amortisation | Growing with revenue |
| EBITDA margin | EBITDA ÷ revenue | Stable or rising |
| Net profit (PAT) | What’s left after all costs, interest and tax | Growth, without one-off gains |
| EPS | Net profit ÷ number of shares | Growing over years |
A worked example
| This quarter | Same quarter last year | Change | |
|---|---|---|---|
| Revenue | ₹1,200 crore | ₹1,000 crore | +20% |
| EBITDA | ₹240 crore | ₹180 crore | +33% |
| EBITDA margin | 20% | 18% | +2 points |
| Net profit | ₹150 crore | ₹110 crore | +36% |
Sales grew 20%, but profit grew faster because margins improved. That is a sign the business is getting more efficient. Next, read why: price increases, cheaper raw materials or a one-time gain? Only the first two are likely to last.
YoY vs QoQ
- YoY (year on year): compares with the same quarter last year. Best for businesses with seasons, like festive sales.
- QoQ (quarter on quarter): compares with the previous quarter. Useful, but seasonal swings can mislead.
Red flags
- Profit rising only because of “other income” or a one-time gain.
- Revenue growing but cash not coming in (receivables piling up).
- Debt rising fast.
- Frequent changes in accounting or auditors.
Why shares can fall on good results
Prices already include what the market expects. If a company grows profit 20% but investors expected 30%, the share can fall. This is why betting on results day is so risky: you’re betting against expectations you can’t see, not just on the numbers.
Common questions
Do I need to read the full annual report?
Not at first. Start with the results press release and investor presentation, then the annual report once you own the share.
How many quarters should I look at?
At least 8 to 12, to see the trend rather than one good or bad quarter.
Next lesson: Balance Sheet and Cash Flow Basics for Share Investors → · See all 14 stock market lessons
Education, not investment advice. Figures and rules as of October 2026; check the latest before you act.