ESG: corporate governance

    RPT intensity

    Formula

    RPT intensity

    RPT Intensity (%) = (Value of related-party transactions with promoter-linked entities during the year ÷ Revenue from operations) × 100

    Variables

    Value of related-party transactions with promoter-linked entitiesSales, purchases, royalties, rent, services and loans given to entities controlled by the promoter or promoter group, outside the listed company's own subsidiaries
    Revenue from operationsConsolidated revenue from operations for the same year

    Finding the inputs

    Transaction values are in the related party disclosures note to the consolidated financial statements; revenue is in the statement of profit and loss. Material contracts are also listed in Form AOC-2 in the board's report.

    Reading the number

    There is no fixed safe level, because some business models depend on group trade. The useful tests are the trend (RPT intensity rising faster than revenue), the type of transaction (loans and royalties deserve more scrutiny than ordinary trade) and comparison with peers. Two related measures help: promoter-linked RPTs as a percentage of EBITDA, and year-end receivables and loans due from related parties as a percentage of net worth.

    Illustrative example

    Glossary terms

    From the research

    Valuation

    A Comparative Financial Analysis of Three Listed Companies

    Three IT services leaders, five years of numbers: similar growth, very different margins and returns on capital, and their October 2026 valuations.

    Markets

    IPO Issue Price vs. Listing Price vs. Subsequent Performance

    Seven of India's most talked-about IPOs since 2021, tracked from issue price to listing to October 2026. Buying on listing day lost money in six of seven.

    Valuation

    Paytm: Valuing a Company With No Clean Comparable

    Paytm is part payments processor, part device business, part loan distributor. Why no single peer fits, and how to value it in parts and in reverse.