EBITDA starts from operating profit and adds back depreciation and amortization, the non-cash charges for using up assets. It shows what the operations generate before the cost of financing and of replacing equipment, which is why analysts use it to compare companies with different debt and tax situations.
Because it leaves out depreciation and interest, EBITDA can flatter capital-heavy businesses. A telecom operator or a chip maker has to keep spending heavily on networks or factories, and EBITDA does not show that. It is not a measure of cash flow or of profit, and companies adjust it in different ways.
Jio Platforms reported record EBITDA of ₹20,865 crore for the quarter to June 2026, up 15.1% from ₹18,135 crore a year earlier. Profit after tax rose only 9.2% to ₹7,764 crore, so EBITDA grew by ₹2,730 crore while profit grew by ₹654 crore, according to BTW Media. An analyst quoted by Business Today blamed higher finance costs and depreciation after 5G assets entered service. SK hynix reported EBITDA of ₩87.7 trillion for the third quarter of 2026, with ₩4.3 trillion of depreciation and amortization.
Read EBITDA together with capital spending, interest and net profit, and check how the company defines it.