Revenue
The income a company earns from its principal business activities during a period, before any costs are deducted.
Formula
Revenue = Units Sold x Average Selling Price, summed across products and services
Unit
₹ crore
In depth
Revenue is the top line and is reported net of returns, discounts and indirect taxes such as GST, which is why 'gross sales' and 'revenue from operations' can differ materially. It excludes other income such as interest earned or profit on asset sales, and mixing the two is a standard way for a weak year to look better than it was. Growth in revenue tells you nothing about profitability, since a company can buy revenue by cutting price. In Indian filings the phrase 'total income' means revenue plus other income, and the distinction is worth checking every time.
Worked example
Revenue from operations ₹1,000 crore plus other income ₹120 crore gives total income ₹1,120 crore. A headline of '12% growth in total income' can hide flat operations if the entire increase came from a one-off gain in other income.
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 “Revenue” 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.