Abstract: The Indian pharmaceutical industry plays a vital role in the nation's economic growth by contributing significantly to healthcare, exports, and employment. This study examines the determinants of profitability of ten selected Indian pharmaceutical companies representing large-cap, mid-cap, and small-cap firms listed on the BSE and NSE. The study is descriptive in nature and relies exclusively on secondary data collected from the annual reports of the selected companies. Profitability is measured using Return on Capital Employed (ROCE), while multiple regression analysis is employed to assess the influence of firm-specific variables such as size, leverage, liquidity, inventory turnover ratio, fixed assets turnover ratio, operating expenses to sales ratio, past profitability, growth, and age on profitability. The findings reveal that the explanatory power of the regression models is consistently high across the selected companies, with R² values ranging from 0.96 to 0.99. Firm size, inventory turnover, past profitability, growth, and age emerge as significant positive determinants of profitability in most companies, whereas leverage and operating expenses generally exhibit a negative influence. The study concludes that efficient management of operational and financial factors is essential for improving profitability and sustaining competitive performance in the Indian pharmaceutical industry. The findings provide useful insights for corporate managers, investors, and policymakers in formulating strategies to enhance financial performance.
Keywords: Indian Pharmaceutical Industry, Profitability, Multiple Regression Analysis, Financial Performance, Inventory Turnover Ratio and so on.
Title: PROFITABILITY OF SELECT INDIAN PHARMACEUTICAL COMPANIES
Author: S.MAHALAKSHMI, Dr.M.GANESAN
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 14, Issue 1, April 2026 - September 2026
Page No: 734-744
Research Publish Journals
Website: www.researchpublish.com
Published Date: 06-August-2026
Amendment Date: 13-August-2026
