The present study was conducted during the period 2014-15 and a sample of 60 trout farmers, 30 each from two districts, namely, Ganderbal and Anantnag was interviewed using a pre-tested questionnaire. The investigation showed that fixed capital investment on sample farm was Rs.6.25 crore per hectare and Rs.1.25 lakh per raceway. The major share of investment was for the construction of raceway, which accounted for 67.60 per cent of total investment on sample farms. The share of total variable and fixed cost was 75.32 per cent and 24.68 per cent, respectively to the total cost. Feed was the major cost component accounting for about 45.35 per cent of the total cost and key factor in deciding profitability of trout farming. Resource use efficiency showed that feed was over-utilised while labour was under-utilised. The returns to scale in trout production of 1.25 indicates increasing returns to scale in trout production. High price of feed and seed are found to be the major constraints in trout culture. The B-C ratio worked out to be 1.80, indicating the economic feasibility of trout farming in the Kashmir valley.