Working capital management (WCM) is one of the most critical components of corporate financial management because it directly influences an organization's liquidity, operational efficiency, and profitability. Effective management of current assets and current liabilities ensures uninterrupted business operations while maximizing shareholders' wealth. In the context of Indian firms, especially after economic liberalization, globalization, and increasing market competition, efficient working capital management has become indispensable for maintaining sustainable profitability and long-term financial stability. Despite significant advancements in financial management practices, many Indian companies continue to experience challenges in maintaining an optimal balance between liquidity and profitability.

The present study examines the impact of working capital management on the profitability of Indian firms by analyzing the relationship between major working capital components such as inventory management, accounts receivable, accounts payable, cash conversion cycle, current ratio, and quick ratio with profitability indicators including Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), and Earnings per Share (EPS). The study adopts a quantitative research approach using secondary financial data collected from selected Indian companies over a specified period. Statistical tools including descriptive statistics, correlation analysis, multiple regression analysis, panel data estimation, and diagnostic tests are proposed to examine the significance of the relationships.