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:
| Item | Amount (₹ crore) |
|---|---|
| Consolidated PAT (IndiaGroup + SubCo combined) | 500 |
| SubCo’s PAT | 100 |
| Minority interest (30% of SubCo’s PAT) | 30 |
| PATMI (profit for IndiaGroup’s shareholders) | 470 |
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?
| PAT | PATMI | |
|---|---|---|
| Full form | Profit After Tax | Profit After Tax and Minority Interest |
| Used in | Standalone financial statements | Consolidated financial statements |
| Includes minority profit? | Yes — in consolidated PAT | No — minority share deducted |
| Represents profit for | All shareholders including minority | Parent company shareholders only |
| More accurate for | Single-company analysis | Group/conglomerate analysis |
| Used to calculate EPS | In standalone statements | In consolidated statements |
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
| Metric | Full form | What it measures | Use case |
|---|---|---|---|
| EBITDA | Earnings before interest, tax, depreciation & amortisation | Operating efficiency | Compare companies across capital structures |
| PAT | Profit After Tax | Total net profit | Single company profitability |
| PATMI | Profit After Tax and Minority Interest | Parent company’s net profit | Group/conglomerate analysis |
| EPS | Earnings Per Share | Profit per share (uses PATMI) | Per-share valuation, P/E ratio |
PATMI quick reference
| Question | Answer |
|---|---|
| PATMI full form | Profit After Tax and Minority Interest |
| Also called | Profit attributable to owners of the parent, NCI-adjusted profit |
| Formula | Consolidated PAT − Minority Interest share of profit |
| Used in | Consolidated financial statements of companies with subsidiaries |
| Differs from PAT when | The company owns less than 100% of one or more subsidiaries |
| Used to calculate | EPS, ROE (on consolidated basis) |
| Where to find it | Consolidated income statement — below PAT line |
| Same as PAT when | Company has no subsidiaries or owns 100% of all subsidiaries |
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.
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?