Best Pharma Stocks in October 2025 - Neuland Labs, Wockhardt & More – 5yr CAGR Basis

The Indian pharmaceutical sector is expected to expand at a CAGR of over 10%, reaching US$ 130 billion by 2030. India boasts the largest number of USFDA-compliant manufacturing facilities globally and hosts around 500 API producers, accounting for nearly 8% of the global API market. In this article, check the best pharma stocks in October 2025, based on the 5yr CAGR. 

Best Pharma Stocks in October 2025 – 5yr CAGR Basis

Note: The best pharma stocks listed here are as of Sep 23, 2025. The stocks are from Nifty 500 universe, with positive 1-yr returns. Sorted based on 5yr CAGR. 

 Overview of the Best Pharma Stocks in October 2025 

1. Neuland Laboratories Ltd 

Neuland Laboratories is enaged in the production and sale of active pharmaceutical ingredients (APIs), serving both Indian and global markets.

The company reported a total income of ₹300.6 crore in Q1 FY26, down 32.4% YoY from ₹444.4 crore in Q1 FY25. Profit After Tax (PAT) stood at ₹13.7 crore, 86.1% YoY decline from ₹98.3 crore in the same quarter last year.

Key Metrics: 

• Return on Capital Employed (ROCE): 20.69%
• Return on equity (ROE): 18.53%

2. Wockhardt Ltd

Wockhardt is a global pharmaceutical and biotechnology company that manufactures finished dosage formulations, injectables, biopharmaceuticals, as well as oral and topical products. For Q1 FY26, the company reported revenue of ₹738 crore, slightly lower than ₹747 crore in the same quarter last year. EBITDA for Q1 FY26 rose to ₹101 crore, marking a 1% quarter-on-quarter growth compared to ₹100 crore in the previous year.

Key metrics: 

• ROCE: 3.93%
• ROE: -1.13%

3. Glenmark Pharmaceuticals Ltd

Glenmark Pharmaceuticals Ltd is a research-driven global pharmaceutical company operating across generics, specialty, and OTC segments, with a presence in over 80 countries. For Q1 FY26, the company reported revenues from operations of ₹32,644 million, a slight increase of 0.6% year-on-year from ₹32,442 million in Q1 FY25. However, the PAT declined sharply to ₹470 million compared to ₹3,402 million in the same period last year.

Key metrics: 

• ROCE: 16.02%
• ROE: 12.54%

4. Caplin Point Laboratories Ltd 

Caplin Point Laboratories Ltd is engaged in producing and sourcing Active Pharmaceutical Ingredients (APIs) and finished dosage formulations. The company is also active in research and development (R&D) and clinical trials.

In Q1 FY26, the total revenue rose 11.7% YoY to ₹533.36 crore compared to ₹477.52 crore in Q1 FY25. PAT also grew significantly by 20.7%, reaching ₹150.76 crore against ₹124.92 crore in the same period last year.

Key metrics: 

• ROCE: 28.62%
• ROE: 21.49%

5. Laurus Labs Ltd 

Laurus Labs is a pharmaceutical and biotechnology company known for its research capabilities. The company has a global presence and is widely recognised for manufacturing critical Active Pharmaceutical Ingredients (APIs), particularly in areas such as anti-retroviral, oncology, cardiovascular, gastroenterology, and high-potency APIs.

In Q1 FY26 (June 2025 quarter), the company reported revenues of ₹1,570 crore, marking a 31% year-on-year growth, while net profits stood at ₹163 crore, reflecting an increase of 1,154% compared to the same period last year.

Key metrics: 

• ROCE: 12.08%
• ROE: 8.22%

Also Read: Best Dividend Paying Stocks in October 2025!

Conclusion

The pharmaceutical industry remains a key contributor to India’s economic growth, driven by robust domestic demand, global expansion, and innovation. However, investors should stay aware of regulatory changes, pricing challenges, and competitive pressures.

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.