The objective of this study is to investigate the relationship between a company's profitability and cost of capital, with a focus on the Indian two-wheeler industry. The present investigation explores the correlation between an organization's cost of capital and its potential for profit, based on the theory that this relationship is significant. This study uses the Weighted Average Cost of Capital (WACC) with the Correlation of the chosen companies with respect to market as the indicator of the cost of capital and Net Profit as the primary measure of profitability to investigate the relationship between the two. The Capital Asset Pricing Model (CAPM) is utilised to calculate the costs associated with debt and equity, respectively. The information used in this analysis comes from a variety of financial sources, and Microsoft Excel is used to perform the required computations. The TVS MOTORS COMPANY Ltd., HERO MOTOCORP, and BAJAJ AUTOS data used in this analysis spans the years 2007–2023.The importance of considering factors other than cost of capital when assessing a company's financial performance is emphasized by this study.