The present study investigates the impact of Central Sector Scheme for Promotion of Agricultural Mechanization for In situ Paddy Stubble Management on the cost, returns, and profitability of forthcoming crops, i.e., wheat and potato. The results revealed that using SMS with super seeder and Happy seeder reduced land preparation and sowing costs by 8.8% and 12.2%, respectively, while mulching options increased costs by 12–30%. Shallow incorporation methods like stubble shaver, rotavator with wet mixing, and zero drills reduced urea usage in wheat by approximately 17%, whereas deep incorporation increased DAP application by 39%. Plant protection costs rose by 22–36% across various PSM options, potentially due to higher rodent populations. The combination of Stubble Shaver + Disc Harrow + Cultivator + Planker + Seed drill resulted in the highest yield of 21.2 quintals per acre and the highest return over variable costs at Rs. 34,308 per acre. Overall, adopting PSM did not negatively impact productivity and profitability of subsequent crops, suggesting its potential benefits warrant further promotion through long-term, state-wide awareness campaigns.