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Neuland Labs leads the pack with an outstanding 5-year CAGR of 74.3%, supported by strong earnings and efficient capital use.
Long-term performance of Glenmark, J.B. Chemicals, Sun Pharma, and Laurus Labs appear robust, on the back of steady revenue and profit growth.
Global demand, good manufacturing quality, and strong API capabilities continue to drive the expansion of India's pharma sector.
The pharmaceutical industry in India continues to be one of the strong pillars of the economy, undergirded by deep manufacturing capabilities, a wide global presence, and an increasingly high demand for quality medicines. It is expected to grow at a rate of over 10% per annum and may reach approximately $130 billion by 2030. The country has close to 500 API manufacturers and the largest number of US FDA-approved plants in the world, making it a global pharmaceutical hub.
To investors eyeing the sector in December 2025, analysis of long-term performance indicators such as five-year CAGR gives a clearer picture of which companies have managed to consistently deliver value. From this perspective, here are some of the top pharma stocks that are worth tracking this month.
Neuland Laboratories leads the chart with a stellar 5-year CAGR of 74.3% and therefore is the strongest long-term performer amongst Nifty 500 pharma names. The company specializes in the manufacture of high-quality Active Pharmaceutical Ingredients APIs both for the domestic market as well as for export.
Its performance in Q2 FY26 was markedly strong. Total income increased to Rs. 516.1 crore from Rs. 315.2 crore a year ago, up sharply by 63.7% YoY, which is exceptional growth. PAT also surged by more than 200% to Rs. 96.5 crore from Rs. 32 crore in the previous year.
Key Financial Strengths:
- ROCE: 20.69%
- ROE: 18.53%
These numbers show that Neuland is efficiently using capital and keeping its profitability intact, which will make it a perfect fit for long-term portfolios.
Glenmark Pharmaceuticals has a major presence in global generics, specialty medicines, and OTC products. The company enjoys a significant international footprint with operations across more than 80 countries worldwide. Glenmark posted consolidated revenue of Rs. 60,469 million in Q2 FY26, an increase of 76.1% YoY, one of the largest jumps in the sector.
Key Financial Strengths:
- ROCE: 16.02%
- ROE: 12.54%
At a 5-year CAGR of 32.76%, Glenmark exhibits a blend of strong fundamentals with steady long-term wealth creation.
Also Read: Best Adani Shares for Long-Term Growth in 2025
J.B. Chemicals is one of the longest-established pharma players in India, and it continues to put up a consistent show. The company has reported revenue of Rs. 1,085 crore for Q2 FY26, against Rs. 1,001 crore recorded in the same quarter last year. Profit after tax climbed to Rs. 208 crore, up 19% YoY.
Key Financial Strengths:
- ROCE: 24.75%
- ROE: 20.75%
At a 5-year CAGR of 28.95%, J.B. Chemicals continues to be a dependable long-term performer with a well-balanced business model.
Sun Pharma is the largest pharmaceutical company in India, which maintains its leadership through a wide portfolio of generics, branded formulations, and APIs. For Q2 FY26, Sun Pharma posted consolidated sales of Rs. 144,052 million, up 8.6% YoY, while the net profit increased by 2.6%.
Key Financial Strengths:
– ROCE: 18.97%
- ROE: 15.66%
Sun Pharma remains a staple in most long-term pharma portfolios owing to its strong balance sheet and stable revenue streams, with a 5-year CAGR of 28.75%.
Other pharma stocks like Laurus Labs, Eris Lifesciences, Torrent Pharma, Lupin, Cipla, and Alkem Laboratories also exhibit strong 5-year CAGR numbers in the range of 14–25% and are noteworthy for diversified pharma exposure.
Also Read: Best Healthcare Stocks to Buy in India in 2025
The growth of the pharmaceutical industry in India is riding on the back of global demand, increasing API capabilities, and innovation across therapy areas. While overall prospects for the sector are positive, investors also need to consider risks emanating from changes in regulations, pricing pressure in international markets, and shifting competition.
Long-term wealth creation often emerges from companies that combine consistent earnings with strong return ratios and a clear strategic direction. Considering these factors and the 5-year CAGR analysis, Neuland Labs, Glenmark, J.B. Chemicals and Sun Pharma stand out from among the best pharma stocks to track or consider this December.
1. What makes pharmaceutical stocks attractive to an investor during December 2025?
The growth of the pharmaceutical industry, in both India and around the world, has attracted growing interest from pharmaceutical stock investors. The need for healthcare continues to grow, while many of these companies have established themselves with substantial current earnings and strong future growth upside due to increasing overseas sales opportunities and increased manufacturing activity for active pharmaceutical ingredients (APIs). Collectively, companies in the pharmaceutical sector are an ideal investment choice for those investors who seek to balance the need for stability with long-term growth potential.
2. Which pharmaceutical company has experienced the greatest growth over the past five years?
Among pharmaceutical companies, Neuland Laboratories has experienced the greatest growth over the past five years, achieving an annualized CAGR exceeding 74%. The jump in their revenue and profit in recent quarters demonstrates that Neuland has effectively managed their operations and is benefiting from strong global demand for their APIs. Their long-term performance has been fundamentally sound, and as a result, Neuland has been able to achieve impressive growth.
3. Is Sun Pharmaceutical still a good long-term investment?
Yes. Sun Pharmaceutical is one of the most reliable pharmaceutical companies. Sun is India's largest pharmaceutical company and offers investors a wide range of products that are marketed in many parts of the world. Sun's continuing ability to generate consistent earnings and high return on equity puts them in a strong position and makes them an excellent choice as both a safe and growing long-term investment option.
4. What are the reasons Glenmark Pharmaceuticals continues to excel in the marketplace?
With a highly globalised presence and a well diversified product line inclusive of generics and speciality medications (including over-the-counter), Glenmark has seen an increase in total revenues in Q2 of FY26 due to increased demand and continued improvement of operations within the organization. The company's long-term compound annual growth rate (CAGR) indicates the company has been able to successfully provide investor value via sustained growth.
5. Are these pharmaceutical stocks good options for beginner investors?
Many pharmaceutical companies have relatively stable annual revenues and consistent consumer demand for their products, so they can be good investments for beginners. Nevertheless, new investors need to receive adequate education regarding the basics of finance (understanding company fundamental information, such as current revenues, trends and historical returns) prior to engaging in a long-term investment strategy. There are well-known pharmaceutical leaders (like Sun Pharma or Cipla) that typically provide beginner investors with a greater degree of long-term stability when investing in stocks.
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