An Impact of Capital Structure on Financial Performance of Selected Pharmaceuticals & Drugs Companies in India

In this business world, capital structure is one of the major decisions and a well-known topic for various research study and widely used by firms and industries.It creates trust and shows effective management of company.It shows various securities or fund in proper manner.Capital structure is a well maintain balanced combination of internal and external fund that borrowed by firm to operate business activities.Basically, funds are grouped into two categories: equity(owner's) fund and debt (borrowed) fund.When any firm think about Abstract: Capital structure is one of the financial decisions while financial performance is essential components of business decisions and growth.This research paper focused to find out impact of capital structure on financial performance for two pharmaceutical and drug companies as samples for five years from 2020 to 2024.Sun pharma ltd.and Torrent pharma ltd.are two samples for research study.Ratio analysis tool is aid to determine capital structure and financial performance, to determine capital structure researcher used ratio of debt-equity while to determine financial performance net profit ratio, return on capital employed, return on equity and return on asset ratios used.Debt-equity ratio is used as independent variable and other financial performance measure ratios are dependent variables.Statistical tool, regression analysis is used to determine impact of variables and correlation is used to find relationship between variables.Study revealed that there is insignificant impact among variables of the study.Research study helps to take necessary decisions on capital structure as well as financial performance, it also use for further research study.