• SYAM KUMAR POTHARAJU

This study examines the impact of capital structure on the profitability of listed companies in India. The capital structure decision is a critical aspect of corporate finance, as it affects a company's cost of capital, risk, and ultimately, its profitability. Using a sample of 200 listed companies from the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) over a period of 5 years (2015-2019), we analyze the relationship between capital structure (measured by debt-to-equity ratio) and profitability (measured by return on equity and return on assets). Our results indicate that there is a significant negative relationship between capital structure and profitability, suggesting that companies with higher debt levels tend to have lower profitability. We also find that the impact of capital structure on profitability varies across industries and firm sizes. The study provides evidence that companies with optimal capital structure tend to perform better than those with suboptimal capital structure. The findings of this study have important implications for policymakers, investors, and corporate managers seeking to optimize capital structure and improve profitability. The study contributes to the existing literature on capital structure and profitability by providing new insights into the Indian context. The results of this study can be used by companies to make informed decisions about their capital structure and by investors to make informed investment decisions.

Capital structure, profitability, listed companies, India, debt-to-equity ratio, return on equity, return on assets.

"A RESEARCH ON IMPACT OF CAPITAL STRUCTURE ON PROFITABILITY OF LISTED COMPANIES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 3, page no.g810-g817, March-2025, Available :http://www.jetir.org/papers/JETIR2503700.pdf

"A RESEARCH ON IMPACT OF CAPITAL STRUCTURE ON PROFITABILITY OF LISTED COMPANIES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 3, page no. ppg810-g817, March-2025, Available at : http://www.jetir.org/papers/JETIR2503700.pdf