Rice–wheat production in the Indo-gangetic plains (IGPs) of India faces major concerns such as depleting resources, rice residue burning, excessive fertilizer use, and decreasing nitrogen use efficiency. These issues threaten sustainable crop production in the future. Therefore, a field study was conducted during the winter seasons of 2020–21 and 2021–22 to evaluate the effect of combined conventional and nano fertilizers on nitrogen application just before or after irrigation to improve wheat productivity, profitability and NUE under conservation tillage. The study evaluated eight treatment combinations of nitrogen application through conventionally applied urea (46% N) and foliar applied nano urea (4% N) under zero tillage with rice residue retention. Results revealed that growth, physiological indices, yield, and quality parameters were enhanced with the application of 150 kg N/ha in three equal splits as basal and just before 1st and 2nd irrigation alone (T2) or along with a spray of nano urea (T5) compared to other treatments. T5 recorded 7.2%, 8.5%, and 7.8% more plant dry matter, number of tillers, and grain yield, respectively, over the conventional practice of applying 150 kg N/ha in three equal splits as basal and 7–10 days after 1st and 2nd irrigation (T3, farmers practice). Although, T2 showed similar results to T5, T5 recorded significantly higher gross ($2542/ha) and net returns ($1279/ha) than the other treatments. However, the benefit–cost ratio of T2 and T5 was same (2.01). A significant and positive correlation coefficient between grain yield and physiological parameters such as CCI and NDVI confirmed that increasing the nitrogen dose enhanced the chlorophyll content, greenness, and plant vigor. Based on the results, it can be concluded that applying 150 kg N/ha in three equal splits as basal and just before 1st and 2nd irrigation under conservation agriculture, along with a single spray of nano urea (4% N) at 60–65 days after sowing, can improve growth, yield attributes, wheat yield, and NUE compared to farmers practice (T3) in India.