Stock Market & Investing What is revenue vs profit? Meaning: A company can announce record-breaking sales and still be quietly bleeding money. Here's the gap most headlines skip right over. Plain example: ₹100 crore in sales minus ₹90 crore in costs leaves just ₹10 crore in actual profit — the number that really matters. Why it matters: High revenue means nothing if costs are eating it alive — profit is the real report card. News connection: 'Company posts record revenue but narrower profit' headlines are a direct signal that rising costs are quietly squeezing margins. Common mistake: Don't assume big revenue automatically means a healthy business. Sometimes it's the opposite.