The research study examines the impact of capital structure on business expansion and shareholder value in the Indian manufacturing sector. The study looks at the relationship between financial performance metrics like Total Sales (TS), Total Assets (TA), Earnings Per Share (EPS), and Market Value Added (MVA) and capital structure variables like DER (Debt-Equity Ratio), Total Equity to Total Assets (TETA) and Interest Coverage Ratio (ICR), and using panel data regression analysis. To guarantee robustness, the analysis includes control variables such as Return on Assets (ROA), Working Capital (WC), Operating Cash Flows (OCF), and Intangible Assets (IA). The findings show that capital structure has a substantial impact on shareholder value and business performance. Notably, DER has a detrimental effect on performance, but ICR, TETA, ROA, WC, OCF, and IA all considerably and favorably increase company value. The results underscore the importance of maintaining an optimal capital structure in the manufacturing sector to enhance operational effectiveness, financial health, and ultimately, shareholder value.