Standalone and Consolidated Statement

Standalone results show the performance of the company as a single entity, without taking into account the performance of any of its subsidiaries. Typically, new businesses only have standalone results, as they derive all their income from a single entity.

In contrast, when a company grows, it expands its business, spins off subsidiaries, and may even acquire other businesses. Such companies release their consolidated financial statements, which represents the performance of a company along with all their subsidiaries.

For example, if you consider Tata Motors, its core domestic passenger and commercial vehicle business are housed in one standalone entity. However, Jaguar Land Rover is its subsidiary and thus its performance becomes a part of the consolidated financial statements.