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

India’s pharmaceutical sector is expected to expand at a CAGR of over 10%, touching ~US$130 billion by 2030. The country leads globally with the highest number of USFDA-approved manufacturing plants and hosts nearly 500 API producers, contributing about 8% to the global API supply. In this article, find the best pharma stocks to consider in December 2025, based on various parameters like 5-year CAGR.

Best Pharma Stocks in December 2025 – 5yr CAGR Basis

Note: The best pharma stocks listed here are as of Nov 28, 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 December 2025 

1. Neuland Laboratories Ltd 

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

The company reported a performance in Q2FY26, with total income rising to ₹516.1 crore compared to ₹315.2 crore in Q2FY25, marking a year-on-year growth of 63.7%. Profit after tax also saw a jump, reaching ₹96.5 crore in Q2FY26 versus ₹32 crore in the same period last year, reflecting a 201.6% YoY increase.

Key Metrics: 

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

2. Glenmark Pharmaceuticals Ltd 

Glenmark Pharmaceuticals is a research-driven global pharmaceutical company operating across generics, specialty, and OTC segments, with a presence in over 80 countries. For Q2 FY26, the company posted consolidated revenue of ₹60,469 million, an increase of 76.1% year-on-year from ₹34,338 million in Q2 FY25. 

Key metrics: 

• ROCE: 16.02%
• ROE: 12.54%

3. J B Chemicals and Pharmaceuticals Ltd 

Founded in 1976, J.B. Chemicals and Pharmaceuticals Limited is among India’s foremost pharmaceutical companies. For Q2 FY26, the company reported revenue from operations of ₹1,085 crore, slightly lower than ₹1,094 crore in Q1 FY26 but higher than ₹1,001 crore in Q2 FY25, reflecting a year-on-year growth of 8%. Profit after tax for the quarter stood at ₹208 crore, up from ₹202 crore in Q1 FY26 and ₹175 crore in Q2 FY25, registering a 19% YoY growth. 

Key metrics: 

• ROCE: 24.75%
• ROE: 20.75%

4. Sun Pharmaceutical Industries Ltd 

Sun Pharmaceutical Industries Ltd specialises in the manufacturing, development, and marketing of a diverse portfolio of branded and generic formulations, as well as Active Pharmaceutical Ingredients (APIs). In Q2FY26, the company reported consolidated sales of ₹144,052 million, marking a growth of 8.6% compared to the same period last year. The net profit stood at ₹31,180 million, reflecting an increase of 2.6% year-on-year.

Key metrics: 

• ROCE: 18.97%
• ROE: 15.66%

Also Read: Best Paint Stocks in Dec 2025!

Best Pharma Stocks in December 2025 – Net Profit Margin Basis

Note: The best pharma stocks listed here are as of Nov 28, 2025. The stocks are from Nifty 500 universe. Sorted based on net profit margin.

Best Pharma Stocks in December 2025 – Debt to Equity Basis

Note: The best pharma stocks listed here are as of Nov 28, 2025. The stocks are from Nifty 500 universe. Sorted based on debt to equity ratio (low to high).

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.