Keywords : Regression analysis; debt to equity; MSMEs; capital structure.

Abstract : The paper investigates how capital structure affects Indian MSME financial performance generally. From 2017 to 2023, the seven-year study covers which the top 10 MSMEs were chosen according on their market worth. The study is to evaluate the effect of capital structure on MSME financial performance as well as the relationship between financial performance in MSMEs and financial leverage. While return on assets, or ROA, return on equity, or NP, debt-to---equity ratios assess capital structure. Regression research has examined the relationship between profitability and capital structure: capital structure acts as the independent variable. The findings of the study show that the financial performance of Indian MSMEs is much influenced by their capital structure.

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