This study analyses the impact of intellectual capital disclosure on the firm's financial performance by developing a comprehensive intellectual capital disclosure index. The study reveals that although intellectual capital disclosure has an insignificant impact on the return on assets, it positively impacts the firm's market capitalization. Among the components of intellectual capital disclosure, Structural capital and Relational capital disclosure positively contribute to the relationship, while Human capital disclosure negatively impacts firm performance. These insights can aid firms in making strategic decisions regarding intellectual capital management and disclosure practices, potentially leading to improved firm performance. The originality of our study lies in the fact that while the literature on this relationship is scarce, with no study in the Indian context, our study provides a realistic conclusion to the intellectual capital disclosure-firm performance relationship and adds value to the current intellectual capital-driven competitive market.