EBIDT (earnings before interest, depreciation and tax)

EBIDT is earnings before interest, depreciation and tax. Under regulation 229 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended with effect from 4 March 2025, an SME issuer may file a draft offer document only if it has earned operating profit, measured as EBIDT, of INR 1 crore from operations in two of the last three financial years.

The figure is built up from profit before tax by adding back finance cost and depreciation. On our reading, other income comes out, because the test is profit from operations. A plant-heavy issuer with thin profit before tax often clears it on the add-backs; a services company with little depreciation has less room. Amortisation is not named in the phrase, and as at 21 September 2026 our reading is that it is not added back on the plain words. Scrap sales, treasury interest and written-back liabilities usually sit in other income and come out.