In today’s competitive automobile industry, managing inventory efficiently is essential for maintaining profitability and financial stability. Since inventory represents a large portion of working capital, poor management can lead to higher costs and reduced profits. This study explores the relationship between inventory management efficiency and financial performance with reference to Hyundai Motor India Limited (HMIL). The research uses both primary data collected from employees and secondary data from financial statements covering 2021–2024. Inventory turnover was used to measure efficiency, while profitability ratios reflected financial performance. The results show a clear positive relationship between better inventory management and improved profitability. The study emphasizes that inventory management is not just an operational task but a key strategic factor influencing financial success.