This research is an attempt to establish a stochastic relationship between financial leverage and Profitability of selected cement companies of India. Since financial reports are important in forecasting and decision making of users, therefore, in this research has been addressed to effect of financial leverage on profitability during 2012-13 to 2016-17 period. In this researcher has taken 3 cement companies and 5 years of financial data to study the effect of financial leverage of profitability of cement industry. Five years of financials taken from annual report for the years 2012-13 to 2016-17 regarding financial leverage and profitability. Based on the data analysis it can be concluded that there is significant effect of financial leverage on cement companies’ profitability.

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Keywords: Financial Leverage, Operating Leverage, Combined Leverage, Profitability, Financials.