What is PATMI? Profit After Tax and Minority Interest — Meaning & Formula Explained

If you have been reading annual reports of large Indian conglomerates — Tata, Reliance, Mahindra, or any company with subsidiaries — you have likely come across the term PATMI. It appears just below PAT on the income statement and is often the more accurate number for evaluating what a parent company actually earned.

This guide explains exactly what PATMI means, how it differs from PAT, and why it matters for investors analysing consolidated financial statements.

What does PATMI stand for?

PATMI is an acronym with four components:

• P — Profit
• A — After
• T — Tax
• MI — Minority Interest

Together: Profit After Tax and Minority Interest — the profit remaining for the parent company’s equity shareholders after both tax and minority interest deductions have been made.

What is Minority Interest?

To understand PATMI, you first need to understand minority interest — also called non-controlling interest (NCI).

When a parent company owns a subsidiary but does not own 100% of it, the remaining ownership belongs to other shareholders. These other shareholders are called minority interest holders.

For example: If Tata Motors owns 75% of a subsidiary company, the remaining 25% belongs to outside shareholders — this 25% ownership stake is the minority interest.

When the subsidiary earns a profit, 25% of that profit belongs to the minority interest holders — not to Tata Motors’ shareholders. PATMI deducts this minority share to show only the profit that truly belongs to Tata Motors’ shareholders.

PATMI formula

Or expressed in full:

Where minority interest portion = (Minority ownership % × Subsidiary’s PAT)

PATMI calculation — a simple example

Let us take a fictional parent company, IndiaGroup Ltd, which owns 70% of a subsidiary called SubCo Ltd:

So while the consolidated PAT is ₹500 crore, only ₹470 crore truly belongs to IndiaGroup Ltd’s shareholders. The remaining ₹30 crore belongs to the minority shareholders of SubCo.

PATMI vs PAT — what is the difference?

Where does PATMI appear in financial statements?

PATMI appears in the consolidated income statement (Profit & Loss statement) of companies that have subsidiaries. You will typically see it labelled as one of:

• “Profit for the year attributable to owners of the parent”
• “Profit after tax attributable to equity holders of the company”
• “PATMI” (especially in annual reports of conglomerates)
• “Profit attributable to shareholders of the parent company”

It is always listed separately from the “Profit attributable to non-controlling interests” (minority interest) line item. Together, both lines add up to the total consolidated PAT.

Why does PATMI matter for investors?

PATMI is a more precise profitability measure than consolidated PAT for companies with subsidiaries for three reasons:

1. More accurate EPS calculation

EPS (Earnings Per Share) should be calculated using PATMI — not consolidated PAT — because EPS represents earnings per share of the parent company. Using consolidated PAT inflates EPS by including profits that belong to minority shareholders.

2. More accurate ROE calculation

Similarly, ROE (Return on Equity) uses PATMI in the numerator when calculated on a consolidated basis, because the equity denominator represents only the parent company’s equity — not the minority interest equity.

3. Reflects true economic ownership

A parent company with a 60% stake in a highly profitable subsidiary only economically owns 60% of that subsidiary’s earnings. PATMI reflects this economic reality accurately; consolidated PAT does not.

PATMI in Indian context — when you will see it

PATMI is most commonly encountered when analysing:

• Large conglomerates — Tata Group, Mahindra Group, Reliance Industries, Adani Group — all have multiple subsidiaries
• Banking and financial groups — HDFC Bank (post-merger), Bajaj Finance, Kotak Mahindra Group
• IT companies with overseas subsidiaries — TCS, Infosys, Wipro all consolidate global subsidiaries
• FMCG companies — HUL, Nestle India, Britannia — subsidiaries or joint ventures

For standalone companies with no subsidiaries, PAT and PATMI are identical — minority interest is zero.

PATMI vs EBITDA vs PAT vs EPS — the full picture

PATMI quick reference

The bottom line

PATMI — Profit After Tax and Minority Interest — is the definitive bottom-line number for any company that has subsidiaries with minority shareholders. It tells you exactly how much profit belongs to the parent company’s equity shareholders, stripping out the portion owed to minority interest holders.

For any serious analysis of Indian conglomerates and group companies, always use PATMI rather than consolidated PAT when calculating EPS, ROE, or any per-share metric. It is a small adjustment that makes a meaningful difference to the accuracy of your analysis.

Q. What is PATMI full form?

A. PATMI stands for Profit After Tax and Minority Interest. It is the net profit attributable to the parent company’s shareholders after deducting income tax and the share of profit belonging to minority (non-controlling) shareholders in subsidiaries.

Q. What is the difference between PAT and PATMI?

A. PAT (Profit After Tax) is the total net profit of a consolidated group including all subsidiaries. PATMI goes one step further — it deducts the portion of profit that belongs to minority shareholders in those subsidiaries. PATMI is therefore always equal to or lower than PAT, and represents only what the parent company’s shareholders actually own.

Q. What is minority interest in PATMI?

A. Minority interest (also called non-controlling interest) is the share of a subsidiary’s profit that belongs to shareholders other than the parent company. For example, if a parent company owns 70% of a subsidiary, the remaining 30% profit belongs to minority shareholders — that 30% is deducted from PAT to arrive at PATMI.

Q. Is PATMI used in India?

A. PATMI is not commonly used in Indian financial reporting. Indian companies typically report PAT (Profit After Tax) under Ind AS accounting standards. PATMI is more widely used in Southeast Asian markets — particularly Singapore, Malaysia, Hong Kong, and Taiwan — where it is the standard bottom-line profitability metric for listed companies.

Q. What is PATMI full form in Singapore?

A. In Singapore, PATMI stands for Profit After Tax and Minority Interest. It is the standard profitability metric used by SGX-listed companies in their financial statements and earnings announcements, representing the net profit attributable to the parent company’s equity holders.

Q.How is PATMI calculated?

A. PATMI = Revenue − All Operating Expenses − Interest − Tax − Minority Interest. Or more simply: PATMI = PAT − Minority Interest (Non-Controlling Interest). You can find minority interest as a separate line item in the consolidated income statement of any company with subsidiaries.

Q. Why is PATMI important for investors?

A. PATMI gives a more accurate picture of the profit actually available to the parent company’s shareholders than PAT. For companies with large minority stakes in subsidiaries, PAT can overstate actual shareholder returns. PATMI removes this distortion, making it a more reliable metric for calculating EPS and evaluating true profitability.

To understand the related metrics, read: What is PAT (Profit After Tax)?, PAT Full Form in Finance & Business, What is EPS?, and What is ROE?