An Empirical Investigation into the Nexus Between Industry 4.0 Adoption and Financial Performance: Evidence from Listed Indian Manufacturing Firms

Industry 4.0 has emerged as a critical driver of technological modernisation in manufacturing, yet empirical evidence on its financial impact remains inconsistent, largely due to the dominant reliance on accounting-based indicators that fail to capture the long-term, intangible value created through digital transformation. Existing studies note this limitation but provide limited market-based evidence, especially in emerging economies. Addressing this gap, the present study examines how Industry 4.0 investments influence firm performance by employing Tobin’s Q as a forward-looking indicator of market valuation. Using a longitudinal dataset of 58 NSE-listed Indian manufacturing firms (2011–2024), the study identifies digital adoption through text-mined disclosures and combines the resulting panel data with managerial survey insights to ensure triangulated interpretation. The findings align with resource-based and dynamic capability theories, demonstrating that Industry 4.0 investments enhance perceived future value. By integrating market-based financial analysis with qualitative managerial evidence, this study provides novel empirical clarity on how capital markets evaluate digital transformation within India’s manufacturing sector