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

The Indian pharmaceutical industry is projected to grow at a CAGR of over 10% to reach US$ 130 billion by 2030. India also holds the distinction of having the highest number of USFDA-compliant manufacturing facilities in the world and is home to around 500 API producers, contributing nearly 8% of the global API market. In this article, check the best pharma stocks in September 2025, based on the 5yr CAGR.

Best Pharma Stocks in September 2025 – 5yr CAGR Basis

Note: The best pharma stocks listed here are as of August 25, 2025. The stocks are from Nifty 500 universe, with positive 1-yr returns, return on equity and ROCE. Sorted based on 5yr CAGR.

Overview of the Best Pharma Stocks in September 2025

1. Neuland Laboratories Ltd

Neuland Laboratories is involved 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 and lower by 10.5% QoQ compared to ₹335.8 crore in Q4 FY25. Profit After Tax (PAT) stood at ₹13.7 crore, witnessing a sharp 86.1% YoY decline from ₹98.3 crore in the same quarter last year and a 50.5% QoQ drop from ₹27.7 crore in Q4 FY25.

Key Metrics: 

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

2. Caplin Point Laboratories Ltd

Caplin Point Laboratories Ltd is involved 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.

The company reported a strong performance in Q1 FY26, with total revenue rising 11.7% YoY to ₹533.36 crore compared to ₹477.52 crore in Q1 FY25. Profit after tax 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%

3. Laurus Labs Ltd

Laurus Labs is a pharmaceutical and biotechnology company known for its strong 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 a sharp increase of 1,154% compared to the same period last year.

Key metrics: 

• ROCE: 12.08%
• ROE: 8.22%

4. Eris Lifesciences Ltd

ERIS Lifesciences Ltd is involved in the manufacturing and marketing of pharmaceutical products.

For the quarter ended June 30, 2025, the company reported a total income of ₹775.69 crore, compared to ₹713.25 crore in the previous quarter and ₹721.36 crore in the same period last year. The net profit stood at ₹125.10 crore, up from ₹102.35 crore in March 2025 and ₹89.55 crore in June 2024.

Key metrics: 

• ROCE: 13.43%
• ROE: 10.84%

5. Torrent Pharmaceuticals Ltd

Torrent Pharmaceuticals is a leading Indian pharmaceutical company involved in the research, development, manufacturing, and marketing of generic drug formulations. The company reported revenues of ₹3,178 crore in Q1 FY26, marking an 11% growth compared to ₹2,859 crore in Q1 FY25.

Key metrics: 

• ROCE: 30.22%
• ROE: 26.46%

Also Read: Best Defence Sector Mutual Funds In September 2025 Based on AUM!

Conclusion

The pharmaceutical sector continues to play a crucial role in India’s growth story, supported by domestic demand, expanding global presence, and ongoing investments in research and innovation. While the industry remains resilient with long-term growth potential, investors should also be mindful of regulatory developments, pricing pressures, and competition.

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.