Non-Controlling Interest
The share of a subsidiary's equity and profit that belongs to shareholders other than the parent company.
Formula
Profit Attributable to Owners of the Parent = Consolidated Net Profit - Profit Attributable to Non-Controlling Interests
Unit
₹ crore
In depth
Consolidation brings 100% of a subsidiary's revenue, assets and profit into the group accounts even when the parent owns less than all of it, so the portion belonging to others must be stripped out before per-share figures are calculated. Using consolidated net profit without that deduction overstates earnings per share, and the error grows with the number of partly owned subsidiaries. Formerly called minority interest, the item sits within equity on the balance sheet, not as a liability. A group with large non-controlling interests is smaller for its own shareholders than its consolidated totals suggest.
Worked example
Consolidated net profit ₹90 crore, of which ₹15 crore belongs to non-controlling interests. With 30 crore shares, correct EPS is (90 - 15) / 30 = ₹2.50, not 90 / 30 = ₹3.00 — a 17% overstatement if the deduction is skipped.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Non-Controlling Interest” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.