The importance of environmental, social, and governance (ESG) scores has grown as stakeholders increasingly prioritize sustainable development. This research explores the connection between ESG scores and corporate profitability by studying 295 Indian companies listed on the NSE for the 2023–2024 financial year. Using ESG scores from CRISIL, the study uses stock price changes to measure profitability. Apart from traditional correlation and regression analyses, the study includes panel data regression models to account for unobserved differences and address potential endogeneity issues. The findings indicate that while the overall ESG score correlates positively with profitability, individual components may have negative impacts. This nuanced understanding suggests that investors value comprehensive ESG adherence, possibly viewing it as a sign of long-term sustainability and risk management. Integrating panel data techniques enhances the strength of these findings, providing a more accurate estimation of the relationship between ESG scores and financial performance.