Best Pharma Stocks in June 2025: Sun Pharma, Torrent Pharma, and More – Based on 5-Year CAGR

The pharmaceutical sector in India has witnessed notable growth, driven in part by government initiatives such as the Production Linked Incentive (PLI) schemes. 

With a combined financial outlay exceeding ₹21,000 crore, these schemes are designed to strengthen domestic manufacturing of APIs, KSMs, and high-value pharmaceutical products. 

As a result of these structural efforts and increased sectoral activity, stocks in this space are likely to remain in focus. Let’s take a look at some of the leading pharma stocks in June 2025 based on their 5-year CAGR performance.

Top Pharma Stocks in India in June 2025 – 5yr CAGR Basis

Note: The best pharma stocks list here is as of May 30, 2025. The stocks are sorted based on the 5Y CAGR.

Overview of the 5 Best Pharma Stocks in India 

1. Sun Pharmaceutical Industries Ltd

Sun Pharmaceutical Industries reported consolidated gross sales of ₹12,815.6 crore for the March 2025 quarter, marking a year-on-year growth of 8.5%. Adjusted net profit for the quarter stood at ₹2,889.1 crore, reflecting a 4.8% increase compared to the same period last year.

However, the reported net profit for Q4 FY25 was ₹2,149.9 crore, down from ₹2,654.6 crore in Q4 FY24. This decline was attributed to one-time charges that impacted the bottom line despite the operational growth seen during the quarter.

Key Metrics:

• Return on Capital Employed (ROCE): 20.47%
• Return on Equity (ROE): 15.15%

2. Torrent Pharmaceuticals

Torrent Pharmaceuticals Ltd reported an 11% increase in consolidated net profit, reaching ₹498 crore for the fourth quarter ended March 2025, compared to ₹449 crore in the same quarter of the previous fiscal year.

The company's consolidated revenue from operations for Q4 stood at ₹2,959 crore, up from ₹2,745 crore in the corresponding period last year, according to a regulatory filing.

Key Metrics:

• ROCE: 32.21%
• ROE: 25.38%

3. Zydus Lifesciences Ltd

Zydus Lifesciences Ltd reported a slight decline in net profit for Q4 FY25, which stood at ₹1,170.9 crore, compared to ₹1,182.3 crore in the same quarter last year.

However, total revenue from operations rose 18% year-on-year to ₹6,527.9 crore. Domestic formulation sales grew nearly 25%, while US formulation sales increased by 30% during the quarter.

Key Metrics:

• ROCE: 26.36%
• ROE: 18.47%

4. Cipla Ltd

Cipla reported a 30% year-on-year increase in net profit for the March 2025 quarter, reaching ₹1,214 crore. The company’s revenue rose by 9% to ₹6,729.69 crore.

However, sales from the US market, which is Cipla's largest revenue contributor, saw a slight dip from $226 million in the previous year to $221 million.

Key Metrics:

• ROCE: 25.22%
• ROE: 16.32%

5. Lupin Ltd

Mumbai-based pharma major Lupin reported a strong 112.4% year-on-year increase in consolidated net profit for Q4 FY25, reaching ₹782.4 crore compared to ₹368.2 crore in the same quarter last year. 

The company’s revenue from operations also grew by 14.2% year-on-year to ₹5,671 crore, up from ₹4,961 crore in Q4 FY24.

Key Metrics:

• ROCE: 28.26%
• ROE: 14.23%

Top Pharma Stocks in June 2025 Ranked by Net Profit Margin

Note: The best pharma stocks list here is as of May 30, 2025. The stocks are sorted based on the net profit margin.

Top Pharma Stocks in June 2025 Ranked by Debt-to-Equity Ratio

Note: The best pharma stocks list here is as of May 30, 2025. The stocks are sorted based on the debt-to-equity ratio.

Read More: Best Semiconductor Stocks in India in June 2025: Tata Elxsi, Dixon Tech & More Based on 5-Year CAGR.

Conclusion

In conclusion, the Indian pharmaceutical sector continues to demonstrate resilience, supported by strong government initiatives like the PLI schemes aimed at boosting domestic manufacturing. 

The top pharma stocks highlighted here showcase impressive 5-year CAGR, healthy profit margins, and solid financial metrics. However, investors should consider multiple factors and conduct thorough research before making investment decisions, keeping in mind the inherent risks of the securities market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.