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Gold vs Digital Gold: Is Investing ₹100 Safe for Students in 2026?

For decades, the Indian middle class has viewed gold as the ultimate "Suraksha Kavach" (safety shield). But for a Gen-Z student in 2025, the traditional "Sunar" (jeweler) model is increasingly inaccessible. With 24K gold prices breaching the ₹75,000–₹80,000 mark per 10 grams, the barrier to entry has moved from "difficult" to "near-impossible" on a student budget. This is why Digital Gold investment for students has evolved from a fintech trend into a core financial strategy. Digital Gold vs Physical Gold: Breaking the ₹100 entry barrier. In this deep analysis, we peel back the layers of the digital gold ecosystem. We don't just ask if it's easy; we analyze the trustee structures, the "buy-sell spread" math, and the regulatory gray areas that every young investor must understand. This article is ...
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Measuring Business’ Profitability Without Seeing Net Profit | EBIT and EBITDA

Measuring Business’ Profitability Without Seeing Net Profit

Earnings before interest, taxes, depreciation and amortization (EBITDA) and earnings before interest and taxes (EBIT).

Measuring Business’ Profitability Without Seeing Net Profit - EBIT and EBITDA

EBIT, EBITDA, and operating profit are forms of profit showing the core performance of a company before considering interest, taxes, and writing off depreciation and amortization (in the case of EBITDA).

[Image of EBIT vs EBITDA calculation formula infographic]

Where is it shown?

There are 3 financial statements:

  • Profit & Loss Statement
  • Balance Sheet
  • Cash Flow Statement

It is shown in the Profit & Loss Statement.

Calculation Example

REVENUE RS. 20,000,000
COST OF GOODS SOLD RS 4,000,000
GROSS PROFIT RS 16,000,000
MARKETING RS 2,000,000
OFFICE AND ADMINISTRATION RS 3,000,000
EBITDA 11,000,000
DEPRECIATION 1,000,000
AMORTIZATION -
EBIT 10,000,000
INTEREST 2,000,000
PROFIT BEFORE TAX 8,000,000
TAX 2,400,000
NET PROFIT 5,600,000

Operating profit = EBIT - (Non-operating profit)

EBIT vs EBITDA Profitability Graph

Important Terms to Know

  • Amortization: Writing off the value of intangible assets such as goodwill or patents over a set period. It is an operating expense.
  • Operating Expenses: Expenses incurred by a business in its normal course (e.g., administration).
  • Non-operating Profit: Profit derived from non-core activities of a company, such as the sale of an asset.
  • Note: Taxes and interest are non-operating expenses, whereas depreciation is an operating expense.

Importance of EBIT and EBITDA

  • EBIT and EBITDA are used to compare companies based on their core business operations.
  • Services Industries: EBIT is preferred (technology, consulting) as they are less affected by depreciation.
  • Capital-Intensive Industries: EBITDA is preferred (manufacturing, oil & gas, telecom) as it excludes heavy depreciation costs.

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