Percentile is used for relative grading . It refers to the percentage of students who scored lesser marks than the marks secured by you. Hope this answers your querry.

Hi Shubham, the percentile for management entrance tests such as SNAP, CAT, CMAT and other exams like MAT, IIFT are based on the idea of what percent of students scored below you. For example, if your percentile is 99.2%, it means that 99.2% of the students have scored below you.

Generally, the scores of these entrance tests are calculated through a process called normalisation which ensures fairness in the performance of the test takers. 

Thank you!

Good Luck!