Sustaining soil fertility in the rice-wheat cropping system (RWCS) is increasingly challenging due to continuous fertiliser use, declining soil organic carbon (SOC) and nutrient imbalances. Integrated nutrient management (INM), which combines organic and inorganic sources, offers a viable approach to restoring soil health and maintaining crop yields. This study evaluated the effects of vermicompost (VC) and mineral fertiliser combinations on soil properties, crop performance and profitability under RWCS in Punjab, India. A randomised block field experiment with 12 VC-recommended dose of fertiliser (RDF) combinations was conducted. Vermicompost-fertilisers integration significantly enhanced SOC and available nitrogen (N), phosphorous (P) and potassium (K) and reduced bulk density compared to control or sole fertiliser. The treatment 10 t ha-1 VC + 100 % RDF recorded the highest grain yield (6.88 t ha-1 in rice and 5.41 t ha-1 in wheat) along with the maximum benefit-cost ratio (1.84). Enhanced microbial activity further improved soil quality by accelerating organic matter decomposition and mineralising nutrients, boosting the availability of N, P and micronutrients. A diverse microbial community creates stable aggregates, enhancing soil structure, aeration and water retention. This nutrient synchronisation aligned nutrient release with crop demand, promoting root development, consistent growth and improved soil fertility over time. Overall, partial substitution of mineral fertilisers with VC enhanced nutrient-use efficiency, economic returns and soil resilience, thereby supporting sustainable intensification of RWCS.