Growth tells you how fast a business is expanding. It can be measured at several levels — revenue, profit, or earnings per share — and each tells a slightly different story.
Growth % = ((Current − Previous) ÷ Previous) × 100
Example: Nova Industries had revenue of ₹800 crore last year and ₹920 crore this year. Growth = ((920 − 800) ÷ 800) × 100 = 15%.
The same idea applies to profit or EPS. Comparing them is revealing: if revenue grows 15% but profit grows only 5%, costs may be rising faster than sales.
| Measure | Last year | This year | Growth |
|---|---|---|---|
| Revenue | ₹800 crore | ₹920 crore | 15% |
| Net profit | ₹100 crore | ₹105 crore | 5% |
| EPS | ₹5.00 | ₹5.25 | 5% |
Revenue and profit can grow at different rates — watch the gap.
Compound Annual Growth Rate (CAGR)
The smoothed annual growth rate between a starting and ending value.
CAGR = (End ÷ Begin)^(1 / Years) − 1
CAGR
14.87%
CAGR smooths out the bumps to give a single average rate. It is a description of the past. A strong historical CAGR does not guarantee future growth — the conditions that produced it may change.
Growth never travels in a straight line. A single year can flatter or distort the picture, so look at several years together.