Overall, our research highlights the importance of considering earnings volatility when making capital structure decisions. Companies need to carefully assess their financial circumstances and weigh the benefits and risks of debt and equity financing. The choice between the two may vary depending on factors such as growth opportunities, profitability, and the company’s overall financial health. Our analysis of Reliance Industries and Adani Enterprises demonstrates the significance of finding a balanced mix of debt and equity to ensure sustainable growth and meet commitments to stakeholders. However, it is important to note that the relationship between earnings volatility and capital structure decisions is complex and can vary depending on various factors. Further research is needed to gain a more comprehensive understanding of this relationship and its implications for corporate decision-making.