Sustainability Disclosure and Firm Value: A Panel Analysis of Indian Pharmaceutical Companies

This research examines the impact of Environmental, Social, and Governance (ESG) disclosures on firm value within the Indian pharmaceutical sector from 2015 to 2025. Utilizing a panel data regression framework with fixed-effects estimation, the study analyses how composite ESG scores and individual pillars correlate with market performance as measured by Tobin’s Q. Controlling for firm size, leverage, and age, the empirical results indicate that while aggregate ESG performance shows a statistically insignificant correlation with market value, the 'Social' pillar emerges as a significant positive driver of firm valuation. These findings suggest that investors in emerging markets prioritise social impact and labour practices over environmental disclosures in specialized sectors like healthcare. The study provides critical insights for corporate managers and policymakers, suggesting that structural reforms in sustainability reporting should emphasise sector-specific metrics to enhance transparency and financial sustainability in transitional economies.Copyright© 2026 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.Article’s History: Received 15th of January, 2026; Revised 9th of February, 2026; Accepted 7th of March, 2026; Available online: 30th of March, 2026. Published as article in the Volume XXI, Issue, 2(92), March, 2026.