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YoY (year-on-year) meaning in simple words: growth explained

The Plainomics desk1 source

YoY (year-on-year): comparing a number with the same number for the same period a year earlier, usually as a percentage change.

At the stall in morning sun, Sameer does a little victory dance waving a printout while Riya laughs at the counter.

The story

two people, one chai stall

May. The Q4 results are on Sameer's desk, and he is already celebrating.

Sameer

Q4 sales ₹33 crore, Q3 was ₹31 crore. Up 6.5%!

Riya

That's QoQ, quarter-on-quarter. Fair, but quarters aren't alike. Exams, monsoon, wedding season: they all change how much chai people drink.

Sameer

So how do investors know if we're really growing?

Riya

They compare Q4 with Q4 last year. That's YoY, year-on-year. Same season, so it's a fair fight. That's why the results table has a column for the same quarter last year.

Sameer

And for the full year?

Riya

Profit before tax went from ₹10 crore to ₹12 crore. ₹2 crore more, divided by last year's ₹10 crore: up 20% YoY.

Sameer

Last year we also added ₹2 crore. Why did that look better?

Riya

Because FY24 was only ₹8 crore. ₹2 crore on ₹8 crore is 25%. The base got bigger.

Sameer

So to keep the same percentage, we have to grow more every year.

Riya

Exactly. Growing up is hard, even for percentages.

The grown-up version

same idea, exact words

Year-on-year (YoY) growth compares a figure for a period with the same period a year earlier: a full year with the previous year, or a quarter with the same quarter of the previous year. It is expressed as a percentage change on the earlier figure. Comparing like periods removes seasonal swings, which a quarter-on-quarter (QoQ) comparison does not. SEBI's format for quarterly results requires listed companies to show the corresponding quarter of the previous year next to the current and preceding quarters.

Formula

YoY growth = (This period − Same period last year) ÷ Same period last year × 100

Which rule asks for itRegulation 33, SEBI (LODR) Regulations, 2015, read with the financial results format in SEBI's LODR Master Circular (updated 30 January 2026).

Spot it in the wild

a real annual report, a real page

Reliance Retail financial performance table comparing FY 2025-26 with FY 2024-25, with the year-on-year revenue growth and the fall in EBITDA margin circled
Found it: p.10Reliance Industries Ltd · Integrated Annual Report 2025-26
  1. Retail revenue of ₹3,28,202 crore against ₹2,91,043 crore last year: up 12.8% year-on-year.
  2. Not everything rose: the margin slipped from 8.6% to 8.2%, shown as (40 bps) in brackets.

Don't mix it up

the usual confusions

  • YoY (year-on-year) ≠ QoQ (quarter-on-quarter)

    QoQ compares a quarter with the quarter just before it, like Q4 with Q3. YoY compares it with the same quarter last year, so seasons don't distort it.

  • YoY (year-on-year) ≠ CAGR

    CAGR is the steady yearly rate over several years. Profit went from ₹8 crore to ₹12 crore in two years: YoY was 25% then 20%, but the CAGR is about 22.5%.

  • YoY (year-on-year) ≠ percentage points

    When a margin falls from 8.6% to 8.2%, that's 0.4 percentage points (40 bps), not a 0.4% fall. Results tables use bps for changes in ratios.

Three quick sips

no sign-up, nothing saved

1/3 Sameer Chai's profit before tax went from ₹10 crore in FY25 to ₹12 crore in FY26. What is the YoY growth?

Hindi mein

सालाना बढ़त (YoY)

YoY का मतलब है किसी आँकड़े की तुलना पिछले साल के उसी समय के आँकड़े से करना, आमतौर पर प्रतिशत बढ़त या गिरावट के रूप में।

Sources

  1. Master Circular for compliance with the SEBI (LODR) Regulations, 2015 by listed entities (30 January 2026), SEBI