Inland aquaculture diversification toward fast-growing, high-yielding finfish species is vital for enhancing rural food security and livelihoods across semi-arid tropics. This study provides an empirical techno-economic and socio-economic evaluation of Nile Tilapia (Oreochromis niloticus) farming practices in the Kamareddy district of Telangana, India. Utilizing a multi-stage stratified random sampling framework, primary cross-sectional data were collected from 120 operational fish farms across four mandals (Kamareddy, Bhiknoor, Domakonda, and Machareddy). Technical parameters, cost-return structures, econometric drivers, livelihood indicators, and operational bottlenecks were evaluated using standard production models, Ordinary Least Squares (OLS) Cobb-Douglas regression, and Henry Garrett’s Ranking Technique. The findings indicate a mean gross yield of 25.49 ± 9.42 the-1 cycle-1, varying from 16.49 ± 3.12 the-1 in smallholdings (< 0.5 ha) to 39.84 ± 4.88 the-1 in large commercial farms (> 1.5 ha). Mean Feed Conversion Ratio (FCR) and Specific Growth Rate (SGR) averaged 1.52 ± 0.15 and 2.89 ± 0.18% day-1, respectively. Feed comprised the largest variable expenditure (71.93%). Tilapia culture demonstrated robust economic viability with a pooled Benefit-Cost Ratio (BCR) of 1.55 and a Net Farm Income of INR 8,90,546 ha-1 cycle-1 (USD 10,665.22). Econometric estimation (R2 = 0.814) revealed that feed input (β = 0.442, p<0.001), stocking density (β = 0.0384, p<0.001), mechanical aeration (p<0.001), and formal training (p = 0.003) significantly enhanced net returns, whereas prolonged culture duration (β = -0.194, p = 0.018) reduced profitability. Socio-economically, adoption increased mean annual household income by 166.83%, elevated labor absorption to 118.4 person-days ha-1 cycle-1 (+177.93%), and reduced income inequality (Gini coefficient decreased from 0.462 to 0.354). Garrett’s ranking identified volatile feed prices (Score: 69.70), certified mono-sex seed scarcity (63.80), and intermediary market control (58.70) as primary constraints. Targeted institutional credit, government-accredited local hatcheries, and cold-chain marketing support are recommended to sustain commercial Tilapia farming in semi-arid agrarian systems.