Best Pharma Stocks in India in January 2026: JB Chemicals, Ajanta Pharma, and More Based on 5Y CAGR!

The Indian pharmaceutical industry, long hailed as the “pharmacy of the world,” is at a turning point. Recent tragedies, including the death of 14 children in Madhya Pradesh from contaminated cough syrup, have highlighted gaps in compliance and quality oversight. While Indian drugmakers supply affordable medicines to millions globally, regulatory standards have often lagged behind. 

Now, with the Drugs Controller General of India enforcing Schedule M norms from January 1, 2026, manufacturers must meet stringent global-standard requirements covering factory design, hygiene, safety testing, and quality systems. For investors, this regulatory reset creates a clear opportunity to invest in pharma companies that are ready to grow sustainably. 

In this article, we highlight the best pharma stocks for January 2026 that are likely to tackle this transformation adeptly.

Best Pharma Stocks in India in January 2026 Based on 5Y CAGR

Note: These stocks have been selected and sorted as of December 26, 2025. They are found to yield above-average returns vis-à-vis the pharmaceutical industry.

Overview of the Best Pharma Stocks in January 2026

Glenmark Pharmaceuticals 

Glenmark Pharmaceuticals has launched Epinephrine Injection USP, 30mg/30mL in the USA. It plans to launch Leucovorin Calcium for Injection USP, 350mg/vial in December 2025, targeting markets worth US$67.6 million and US$16.8 million respectively. These launches will boost Glenmark’s injectable portfolio, expand market share, increase revenues, and strengthen its position in the competitive US hospital and generics market.

J.B. Chemicals & Pharmaceuticals 

J.B. Chemicals & Pharmaceuticals achieved a strong ESG score of 86 in the DJSI ranking, highlighting its global leadership in sustainability. The company also reported 16% revenue growth in Q2 FY26 with consolidated revenue of ₹1,040 crores and net profit of ₹208 crores, driven by robust operations. With the CCI approving Torrent Pharmaceuticals’ acquisition, investors can expect enhanced scale, strategic synergies, and potential value creation, positioning J.B. Chemicals for stronger long-term growth in India and globally.

Laurus Labs 

Laurus Labs invested ₹349.99 crores in its subsidiary Laurus Bio, raising its stake to 75.61%. This is signalling its push into high-growth biotech. The company reported Q2 FY26 revenue of ₹1,653 crores, up 35%, with strong margin expansion (gross margin ~60% and EBITDA margin 26%). 

Strategic investments in a new manufacturing facility, ADC technology, and new modalities position Laurus for long-term growth, making it attractive for investors.

Torrent Pharmaceuticals 

Torrent Pharmaceuticals received an ESG rating of 70 from NSE Sustainability Ratings, reflecting strong environmental, social, and governance practices. The company also reported Q2 growth, with net profit rising 30% to ₹5.9 billion and revenue increasing to ₹33 billion. Torrent is positioned for sustainable growth and shows potential for long-term value creation.

Ajanta Pharma 

Ajanta Pharma signed an in-licensing deal with Biocon for Semaglutide, gaining exclusive rights in 23 markets across Africa, the Middle East, and Central Asia, expanding its international footprint. 

Additionally, promoter Aayush Agrawal released the pledge on 4.2 lakh shares due to rising market prices. These developments strengthen investor confidence, highlighting growth opportunities abroad and a positive outlook on promoter commitment.

How Do the Best Pharma Companies in India Fare in Terms of Returns and Stock Value?

The average PE ratio for the pharma sector is generally around 45–50. JB Chemicals and Ajanta Pharma stand out as undervalued stocks with solid EPS, making them appealing for investors seeking a balance between returns and stock value. 

Note: These stocks have been selected and sorted as of December 26, 2025. They are found to yield above-average returns vis-à-vis the pharmaceutical industry.

Read more: India’s Top Car Sellers in 2025: Maruti, Hyundai and Tata Lead the Sales Chart.

Conclusion

The Indian pharmaceutical sector is at a pivotal moment with stricter Schedule M regulations coming into effect from January 2026. Companies with strong compliance, robust manufacturing, and global-ready operations are poised for sustainable growth. Investors with a Demat account should carefully watch these stocks for buying opportunities next year. 

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.