In this paper an attempt has been made so as to ascertain the impact of capital structure on the profitability of a firm. This study is focused on automobile industry   and ten companies are taken as sample. The reference period of the study is five years and is completely based on secondary data which has been collected through various sources. In order to achieve the objectives of the study, the researchers have employed the analysis of various ratios. The findings of the study have put forth that capital structure do have statistically significant impact on the profitability of firms.