The study intended to analyse the management of working capital and its impact on profitability of selected Indian pharmaceutical companies. Present study used panel data methodology and also employed analytical and descriptive research designs. Financial statements of pharmaceutical firms were utilized as the primedata sources. The study used ROTA as dependent variable to evaluate profitability and ARP, SCP, APY, CCP, LAR, CUR and LR as independent variables to measure firms’ working capital. The study employed purposive sampling and data was gathered from sample firms’ annual report.The data covered a period of 10 years from 2009-10 to 2018-19. Findings indicated that certain variables had significant correlation with other variables. In this way, APY and SCPhad significant and positive correlation. CCP had positive and significant correlation with SCP. Regression results revealed that APY, CUR and LRwere statistically significant among the seven independent variables. However, the other variables were statistically insignificant. Therefore, findings had several implications for Indian pharmaceutical firms.
Keywords: Pharmaceutical Firms, Profitability, Management of Working Capital, Return on total assets, Cash Conversion Period.