Best Pharma Stocks in February 2026 - Glenmark, Sun Pharma & More – 5yr CAGR Basis

India’s pharmaceutical industry is projected to grow at a CAGR exceeding 10%, reaching nearly US$130 billion by 2030. The country also leads globally in the number of manufacturing plants approved by United States Food and Drug Administration and is home to nearly 500 API manufacturers, accounting for about 8% of global API production. In this article, find the best pharma stocks to watch in February 2026, selected using parameters such as 5-year CAGR and other key metrics.

Best Pharma Stocks in February 2026 – 5yr CAGR Basis

Note: The best pharma stocks listed here are as of Feb 13, 2026. The stocks are from Nifty 500 universe, with positive 1-yr returns. Sorted based on 5yr CAGR. 

Overview of the Best Pharma Stocks in February 2026

1. 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. 

In Q3 FY26, the company reported strong performance in its India Formulations segment, with revenue rising 22.1% year-on-year to ₹12,986 million. Profit After Tax (PAT) also showed healthy growth, increasing 15.9% year-on-year to ₹4,032 million.

Key metrics: 

• ROCE: 16.02%
• ROE: 12.54%

2. J B Chemicals and Pharmaceuticals Ltd

Founded in 1976, J.B. Chemicals and Pharmaceuticals Limited is among India’s foremost pharmaceutical companies. 

JB Pharma reported revenue of ₹1,065 crore in the third quarter of FY26, marking an 11% increase compared to ₹963 crore recorded in Q3 FY25. The company also delivered strong bottom-line growth, with net profit rising 22% year-on-year to ₹198 crore, up from ₹162 crore in the corresponding quarter last year.

Key metrics: 

• ROCE: 24.75%
• ROE: 20.75%

3. Torrent Pharmaceuticals Ltd 

Torrent Pharmaceuticals Ltd is one of India’s leading pharmaceutical companies, engaged in the research, development, manufacturing, and marketing of generic pharmaceutical formulations. 

The company reported total revenues of ₹3,302 crore in Q2 FY26, compared with ₹2,889 crore in Q2 FY25, reflecting a healthy year-on-year growth of 14%, supported by improved performance across key domestic and international markets.

Key metrics: 

• ROCE: 30.22%
• ROE: 26.46%

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%

5. Laurus Labs

Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotechnology company with a global leadership position in select Active Pharmaceutical Ingredients (APIs), including anti-retroviral, oncology (including high-potent APIs), cardiovascular, and gastro therapeutics. 

The company reported Q3 FY26 revenues of ₹1,778 crore, reflecting strong revenue growth of 26% year-on-year, while EBITDA rose 70% to ₹485 crore, resulting in an EBITDA margin of 27.3%. Gross margins for the quarter stood at a robust 60.9%.

Key metrics: 

• ROCE: 12.08%
• ROE: 8.22%

Also Read: Best Long-Term Stocks in Feb 2026!

Best Pharma Stocks in February 2026 – Net Profit Margin Basis

Note: The best pharma stocks listed here are as of Feb 13, 2026. The stocks are from Nifty 500 universe. Sorted based on net profit margin.

Best Pharma Stocks in February 2026 – Debt to Equity Basis

Note: The best pharma stocks listed here are as of Feb 13, 2026. The stocks are from Nifty 500 universe. Sorted based on debt to equity ratio (low to high).

Conclusion

The pharmaceutical sector continues to play a vital role in India’s economic development, supported by domestic demand, global market expansion, and ongoing innovation. At the same time, investors should remain mindful of regulatory shifts, pricing pressures, and rising competition within the industry.

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.