The cost of capital is a critical financial metric that significantly impacts a business’s investment decisions, capital budgeting, and overall financial strategy. The optimal financing decisions and the enhancement of shareholder value in manufacturing organizations, which frequently incur substantial expenditures in apparatus, technology, and operations, are facilitated by the accurate estimation of the cost of capital. This research assesses the debt-to-equity funding ratio of Bharat Forge, a prominent Indian manufacturer in the automotive and industrial sectors. The paper investigates the methods for calculating the weighted average cost of capital (WACC), the cost of debt, and the cost of equity while considering market conditions, risk factors, and industry norms. The research investigates Bharat Forge’s financial statements and market data to illustrate the business’s ability to maintain growth over time, balance risk and return, and identify the most effective methods of funding itself. The results underscore the importance of accurate cost of capital estimation in the strategic financial planning of manufacturing companies.