The dynamics of sustained growth and profitability forces the corporations to find out the relationship between their growth and profitability. The main objective of the study is to evaluate the effect of company's growth on profitability and the interaction between them. To achieve the purpose and following a two stage cluster sampling, 40 companies listed in Tehran stock exchange, have been selected from pharmaceutical, chemical, sugar free foods, and sugar industries for the period of 2004 to 2010. Data analysis was done by a vector auto-regression (VAR) model and using dynamic panel system GMM estimator with the help of Eviews5 software. The results showed that the market share has a positive impact on profitability, while the increased sales’ growth rate in the current year and the Past year's and debt leverage have not a significant relationship with profit in the current year. Moreover, the last year's profit and market share have a positive impact on the sales’ growth rate in the current year, whereas profitability and debt leverage in the current year have not a significant relationship on sales growth rate in the current year.