This chapter examines the relation between ESG (Environmental, Social, and Governance) practices and the financial success of companies in India during the years 2016 to 2020. The study uses panel data analysis based on a sample of 100 firms and ESG scores from the Thomson Reuters database which applies (Ordinary Least Squares) OLS regression and Fixed Effects (FE) regression models. OLS results provide evidence of a statistically significant negative relationship, implying that a one-point increase in ESG score is associated with a 4.32% decrease in Return on Assets (ROA). On the contrary, FE models indicate that there is no significant impact of ESG on financial results when controlled for time-invariant variables. These findings imply that in the Indian context the short-term costs of ESG compliance outweigh its short-term benefits, but they also offer opportunities for long-term value creation. The study emphasizes the need for targeted ESG investments, enhanced transparency through reporting, and proactive stakeholder engagement to align the costs of compliance with sustainability aspirations. Contributes to sustainable business practices literature in developing countries.