This study aimed to investigate the relationship between intangible assets and profitability, firm value creation of Nifty pharma index companies. For the research, data of nifty pharma index companies for the 6-year period from 2016 to 2021 is collected and analyzed. Descriptive statistics and regression analysis were used to examine the relationship between intangible assets, profitability, and firm value creation. The results indicated that intangible assets (IA) had a positive significant relationship with profitability- return on assets (ROA), return on equity (ROE), return on capital investment (ROIC), and profit after tax (PAT) of nifty pharma index companies. Further, the study found that intangible assets also had a positive significant relationship with firm value as measured by Tobin q (Q). Price to book ratio (PB ratio), and economic value added (EVA) did not have a significant relationship with intangible assets. The research has contributed to the understanding of intangible assets and their influence on profitability and firm value generation, particularly among pharma companies in the nifty pharma index.

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Keywords: Intangible Assets, Return on Assets, Return on Equity, Return on capital investment, Profit after Tax, Tobin q, and Economic Value Added.