Capital structure, or what’s generally known as capital mix, is extremely important to manage the general cost of capital so as to boost the earnings per share of share holders. After globalisation and liberalisation, various financial sector reforms were started by governments, like reducing rates of interest etc., which directly affected the capital structure planning of firms. Because of this example, the fertilizer industry also reorganized their capital structure. The financing of a capital structure decision could be a significant managerial decision. Initially, the corporate will need to plan its capital structure at the time of its promotion. Subsequently, whenever funds need to be raised for finance and investment, a capital structure decision is involved. The debt-equity ratio is calculated to live the extent to which debt financing has been utilized in a business. The ratio indicates the proportionate claims of householders and outsiders against the firm’s assets. The aim is to urge a plan of the cushion available to outsiders on the liquidation of the firm. As a general rule, there should be an approximate mixture of owner’s funds and outsider’s funds in financing the firm’s assets. During this research article, researchers attempt to evaluate the concept of capital structure, capital structure planning and patterns of capital structure in TATA Chemicals and Chambal Fertilizers We found that both companies are using the most possible long-term debt in their capital structure planning. During the study period, both the businesses raised more and more long-term funds to fulfill their development and expansion needs because debt may be a cheaper source of finance, especially from 2015-16 to 2019-20 onwards when rates of interest decreased regularly within the New Delhi market.

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Keywords: Fertilizers, Ratio Analysis, Capital Structure, Capital Planning, Debt-Equity Ratio.