Groundnut (Arachis hypogaea L.) is an important oilseed crop, but yield improvement is constrained by a narrow genetic base and complex inheritance of yield traits. This study assessed combining ability and gene action controlling yield and its components using six lines and four testers in a line × tester design, generating 24 F₁ hybrids. Crosses were made during kharif 2021 and the hybrids along with their parents were evaluated during kharif 2022 at the Research Farm, College of Agriculture, Rajmata Vijayaraje Scindia Krishi Vishwa Vidyalaya, Gwalior, India, under a randomised block design (RBD) with three replications. Significant variability was observed among genotypes for all traits, including pod yield per plant (6.47–10.83 g) and kernel yield per plant (4.36–7.55 g). Analysis of variance (ANOVA) revealed significant effects of line, tester and line × tester interactions, indicating the involvement of both additive and non-additive gene actions. Among the parental lines, TG-86, Mallika, Nithya Haritha and TG-88 exhibited high general combining ability (GCA) for kernel yield, while KDG-128 and TG-37A were identified as superior testers. The crosses Mallika × KDG-128, TG-86 × SunOleic-95R and TG-88 × TG-37A showed high specific combining ability (SCA), highlighting their potential for heterosis breeding. The σ²GCA/σ²SCA ratio was less than one for most traits, indicating the predominance of non-additive gene action, whereas sound mature kernel percentage exhibited predominantly additive gene action. These findings suggest that heterosis exploitation and delayed selection in segregating generations are effective strategies for improving groundnut yield and the identified superior lines and hybrids provide valuable resources for breeding high-yielding, stable cultivars.