A CDMO, (Contract Development and Manufacturing Organisation), is a company that provides comprehensive services to pharmaceutical, biotechnology, and medical device companies. They tend to cover the entire process from drug development through manufacturing and packaging.
CDMOs enable pharmaceutical companies to outsource complex and costly development and manufacturing tasks. Thus, pharma companies can focus on core activities like drug discovery.
The CDMO approach streamlines the drug development lifecycle, reduces costs, and accelerates time-to-market for pharmaceutical products. Stocks from the sector have always found favour with investors. Here are 5 of the best CDMO stocks in India.
We have filtered these stocks using Equitymaster’s stock screener – best pharma CDMO stocks in India.
#1 Divis Laboratories
First on our list is Divis Laboratories.
Divis Laboratories is a prominent CDMO. The company specialises in custom synthesis and manufacturing of Active Pharmaceutical Ingredients (APIs).
It provides integrated solutions supporting the entire drug development journey, from early-stage development to post-launch commercial-scale manufacturing.
12 out of the top 20 Big Pharma Companies across US, EU and Japan are associated with Divis Laboratories for more than 10 years.
The company operates state-of-the-art manufacturing units in India, which have been inspected several times by the US FDA. Divis Laboratories complies with stringent global regulatory standards, including USFDA, EU GMP, Health Canada, TGA, ANVISA, PMDA, and others.
Divis Labs Financial Snapshot (FY20-24)
| (Rs m, consolidated) | FY20 | FY21 | FY 22 | FY 23 | FY 24 |
| Net Sales | 53,944 | 69,694 | 89,598 | 77,670 | 78,450 |
| Net Profit | 13,765 | 19,843 | 29,605 | 18,240 | 16,000 |
| Return on Equity (%) | 18.8 | 21.3 | 25.2 | 14.3 | 11.8 |
| Return on Capital Employed (%) | 25.0 | 28.7 | 31.4 | 18.6 | 16.0 |
Source: Equitymaster
Divis Laboratories has shown good growth over the last few years. The average 5-year return on equity (ROE) is 18.3%. The average 5-year return on capital employed is 23.9%.
Going forward, Divis Laboratories recently signed a significant long-term manufacturing and supply agreement with a global pharma major. The company will now invest Rs 6.50-7.0 bn in expanding its manufacturing capacity to support future growth and assured supply.
Custom synthesis is a strategic area gaining momentum for the company. Divis Laboratories is experiencing increasing trust from global innovators, reflected in multiple requests for proposals. The long-term prospects for the company seem good. Interesting stock to add to your watch list.
#2 Jubilant Pharmova
Next on the list is Jubilant Pharmova.
Jubilant Pharmova is actively involved in the CDMO business. It offers a broad range of CDMO services, particularly focusing on sterile injectables. This includes sterile fill and finish injectables (both liquid and lyophilized forms), ophthalmic products (liquids, ointments, creams), and ampoules.
Jubilant Pharmova’s CDMO capabilities are supported by multiple manufacturing facilities in India and North America that comply with global regulatory standards such as US FDA, EMA, Health Canada, and others.
Jubilant Pharmova Financial Snapshot (FY20-24)
| (Rs m, consolidated) | FY20 | FY21 | FY 22 | FY 23 | FY 24 |
| Net Sales | 59,758 | 60,985 | 61,302 | 62,817 | 67,029 |
| Net Profit | 6,778 | 5,739 | 4,130 | -649 | 727 |
| Return on Equity (%) | 12.1 | 12.1 | 7.8 | -1.2 | 1.3 |
| Return on Capital Employed (%) | 13.0 | 14.4 | 10.0 | 2.5 | 5.2 |
Source: Equitymaster
The average 5-year ROE of the company is 6.7%. The average 5-year return on capital employed is 9.0%.
Moving ahead, the company is doubling capacity at its Spokane, Washington facility. For this, it has a planned investment of about $285 million. This expansion includes two high-speed injectable fill lines and lyophilizers, with the first line expected to start commercial production in FY26 and the second by FY28.
This will drive future volume growth and support healthy revenue levels beyond current COVID-related contract tapering. The company is adding large pharma customers and scaling infrastructure to meet increased outsourcing needs in drug discovery, development, and manufacturing.
All of this are expected to bear fruits in the coming years.
#3 Laurus Labs
Laurus Labs is positioned as a one-stop, high-quality CDMO provider offering integrated services from clinical-stage development to commercial-scale manufacturing. It focuses on complex small molecules, oncology, orphan drugs, and biologics, catering to global pharmaceutical companies.
The company’s CDMO business has been growing at a brisk pace.
In Q4 FY25 alone, CDMO revenue surged 85% year-over-year to Rs 4.90 bn, driven mainly by the small molecules segment. In FY2025, Laurus Labs generated Rs 15.34 bn from its CDMO segment, marking a 42% year-over-year growth.
Laurus Labs Financial Snapshot (FY21-25)
| (Rs m, consolidated) | FY21 | FY22 | FY 23 | FY 24 | FY 25 |
| Net Sales | 48,135 | 49,356 | 60,406 | 50,408 | 55,540 |
| Net Profit | 9,838 | 8,324 | 7,966 | 1,682 | 3,544 |
| Return on Equity (%) | 37.9 | 24.9 | 19.8 | 4.1 | 8.0 |
| Return on Capital Employed (%) | 45.3 | 30.1 | 26.6 | 8.6 | 13.8 |
Source: Equitymaster
Laurus Labs has reported a slight inconsistency in net profits over the years. The average 5-year ROE is 18.9%. The average 5-year return on capital employed is 24.90%.
Moving ahead, Laurus Labs has completed CDMO capacity expansion across multiple sites in 2025 along with new CDMO R&D, AH MB-3 & Bio pilot facility.
The company is expanding its capabilities with a new GMP facility in Navi Mumbai for CAR-T and lentiviral vector manufacturing, expected to be operational by mid-2025
Laurus Labs’ CDMO business is a key growth driver, contributing substantially to revenues. The company’s integrated service offerings, expanding capacity, and focus on complex molecules and biologics position it well to capture increasing global outsourcing demand.
#4 Piramal Pharma
Next on our list is Piramal Pharma.
Piramal Pharma is a leading global pharmaceutical and wellness company.
The CDMO business of the company operates globally with facilities across the US, Europe, and Asia enabling the company to serve multinational pharmaceutical companies with differentiated and on-patent molecule manufacturing.
Piramal Pharma is seeing good growth in its CDMO business.
The CDMO business contributed around 58% of Piramal Pharma’s revenues in FY24 and has shown robust growth since then. In FY25, revenues from CDMO grew by approximately 12% year-over-year, driven primarily by on-patent commercial manufacturing and innovation-related work.
In FY25, the company successfully cleared 36 regulatory inspections and 165 customer audits without any major observations.
Piramal Pharma Financial Snapshot (FY20-24)
| (Rs m, consolidated) | FY21 | FY22 | FY 23 | FY 24 |
| Net Sales | 63,149 | 65,591 | 70,816 | 81,712 |
| Net Profit | 8,350 | 3,760 | -1,865 | 178 |
| Return on Equity (%) | 14.9 | 5.6 | -2.8 | 0.2 |
| Return on Capital Employed (%) | 14.0 | 7.3 | 2.2 | 6.1 |
Source: Equitymaster
Going forward, Piramal Pharma aims to double its CDMO revenues to $1.2 billion by FY30, targeting early-to-mid teens growth rates. The company plans to maintain a 25% EBITDA margin in this segment by that time.
Piramal Pharma’s future is anchored in scaling its CDMO business to $1.2 billion, expanding complex hospital generics, and accelerating consumer healthcare growth, targeting overall revenues of $2 billion by 2030.
#5 Gland Pharma
Gland Pharma is one of the fastest-growing generic injectable manufacturers globally, with a diversified portfolio.
It operates 7 manufacturing facilities (4 for finished formulations and 3 for APIs) with extensive vertical integration and a centralised R&D team of about 257 personnel.
Gland Pharma’s CDMO business operates primarily on a B2B model. This includes IP-led licensing, tech transfers, contract manufacturing (CMO), and fill-finish services.
It has a diversified revenue model involving license fees, milestone payments, royalties, and fixed per-unit pricing.
Gland Pharma Financial Snapshot (FY20-24)
| (Rs m, consolidated) | FY20 | FY21 | FY 22 | FY 23 | FY 24 |
| Net Sales | 26,332 | 34,629 | 44,007 | 36,246 | 56,647 |
| Net Profit | 7,729 | 9,970 | 12,117 | 7,810 | 7,725 |
| Return on Equity (%) | 21.3 | 17.0 | 17.0 | 9.8 | 8.9 |
| Return on Capital Employed (%) | 27.5 | 22.8 | 22.7 | 13.3 | 13.1 |
Source: Equitymaster
The company has had a very consistent track record of financial performance. The average 5-year ROE is 14.8%. The average 5-year return on capital employed is 19.9%.
Moving ahead, the company is investing significantly in expanding complex injectable capabilities and biologics CDMO. It acquired Cenexi, a French CDMO, last year. Gland Pharma plans to increase biologics capacity by 15kL and expand GLP-1 cartridge capacity by 2.5 times over the next two quarters.
Gland Pharma has an in-house complex injectable pipeline of 19 products with a US market opportunity of $6.5 billion.
With a strong B2B model, global regulatory compliance, and a robust product pipeline, Gland Pharma is positioned to grow its CDMO segment significantly.
Conclusion
The Indian CDMO market is expected to more than double by 2030, driven by rising global outsourcing, supply chain diversification, and technological advancements.
Indian CDMO companies are positioned for significant growth over the next decade, supported by competitive pricing, skilled talent and regulatory compliance.
Pharma companies are rapidly expanding capabilities in biologics and complex drug manufacturing.
While challenges remain, India’s strong fundamentals and government support make it a rising global powerhouse in pharmaceutical contract development and manufacturing.
Happy investing.
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