It's not the profit, it's the surprise

Compare the two bars each time.

Every quarter, listed companies report their profits. The market has already guessed the number. Watch what happens when the real number arrives.

The price reacts to **actual versus expected**, not to the profit on its own.

Reading a results day

• Quarterly results four times a year — Each listed company reports its revenue, its expenses, the interest and tax it paid, and its profit for the quarter.
• Street expectation the market's guess — Before results, analysts and investors estimate what the company will earn. That estimate is the bar the company is judged against.
• Guidance the company's own forecast — Some companies also say what they expect in the coming quarters. Changes in guidance can move the price as much as the results.

Beat, miss or in line?

Try each combination.

The market expects a profit of **₹100 crore** this quarter. Change the actual result, and last year's.

**Remember:** last year's number doesn't decide the reaction. The gap between actual and expected does.

Example figures. These are typical first reactions; guidance and other news can change them.

Results season

Tap each quarter.

India's financial year runs from April to March, split into four quarters.

Rules give companies a few weeks after each quarter to report, a little longer at year-end.

Check — Question 3 of 4

Beat, miss or in line? (Expected → actual)

What you now know

• Listed companies report results every quarter: revenue, expenses, interest, tax and profit.
• Before results, the market forms an expectation of the profit.
• Beat expectations: the price tends to rise. Miss: it tends to fall, even if profit grew.
• In line: often flat, sometimes with a slight dip.
• Guidance, the company's own forecast, can move the price too.