Top CDMO Stocks in India to Watch in 2025

The most talked about segment in India's pharma industry today is the CDMO sector. After COVID-19, pharmaceutical companies around the world are now outsourcing their R&D and manufacturing work - and this is where the demand for CDMO companies has increased rapidly. CDMO stocks in India are increasingly attracting investors' attention as these companies have now become an important part of the global pharma chain. In this blog, we will know what the CDMO sector is, what its future looks like, and which can be the best CDMO stocks in India to keep an eye on in 2025.

What is CDMO? Why it Matters in Pharma Today

The full form of CDMO is Contract Development and Manufacturing Organization. These are the pharma companies that do research (R&D), development and manufacturing for another drug manufacturing company. Meaning, big pharma companies hand over the responsibility of research to manufacturing of their new products to CDMO, which saves both their time and cost.

Traditional Pharma vs CDMO: What is the difference?

• Traditional pharma companies make and market medicines themselves.

• Whereas CDMO companies only provide services of making, testing and packaging those medicines which have been patented or researched by the client company.

The work of CDMO is like 'backend support', but this support has become the backbone of the pharma industry.

Why is CDMO important for Global Pharma companies?

Cost Efficiency: It is cheaper to get work done from CDMO than doing R&D and manufacturing yourself.

Scalability: Production can be done quickly and on a large scale.

Regulatory Compliance: Indian CDMOs meet major global standards like USFDA, WHO-GMP.

How is India becoming a Global CDMO Hub?

Due to India's strong R&D capabilities, low cost, experienced manpower and government support, many companies of the country are now taking global CDMO projects. This is the reason why cdmo pharma stocks in India are growing rapidly today and have become a strong growth story for investors.

Top 10 CDMO Stocks in India

The table below covers the top CDMO companies in India that are becoming popular among investors due to their strong hold in the pharma sector and global client base.

(As of 23 July 2025)

A brief overview of the Best CDMO Stocks in India is given below:

1. Divi’s Laboratories:

Divi’s Laboratories was founded in 1990 by Dr. Murali Krishna Prasad Divi. Initially, the company manufactured Active Pharmaceutical Ingredients (APIs) and intermediates, but over time it became a leading CDMO company. Divi’s provides research, development and manufacturing services for pharma companies. Its production units are located in Hyderabad and Visakhapatnam, which fully meet global standards such as USFDA, WHO and EU-GMP. The company is characterized by its quality, reliability and long-term client partnerships. Today, Divi’s is among the few Indian companies that have become the first choice of the global pharma industry.

2. CIPLA 

CIPLA was started in 1935 by Dr. K.A. Hamied. It is counted among the oldest and most trusted pharma companies in India. CIPLA has made significant contributions not only in General Medicine but also in Respiratory, HIV, Oncology and other segments. In the last few years, the company has also stepped into Contract Development and Specialty Manufacturing, making it a strong presence in the CDMO space as well. Its global approach, R&D innovation and manufacturing scale make it a trusted partner. Today CIPLA is one of those Indian pharma companies that maintain a balance between quality and innovation.

3. Laurus Labs

Laurus Labs was founded in 2005 and today this company has become a well-known name in the world of APIs, intermediates and formulations. Laurus has strategically adopted the CDMO business model, especially in the antiviral, cardiovascular and oncology segments. The company's strength lies in its in-house R&D and backward integration, which enables it to deliver faster to global clients. Laurus Labs' manufacturing facilities meet international quality standards. Today, Laurus has become an emerging leader in the Indian CDMO sector.

4. Gland Pharma 

Gland Pharma was started in 1978 and is considered a specialist in the injectable medicine segment. The company is completely focused on the B2B model, in which it provides development to manufacturing services for global pharma companies. Gland specifically works on Sterile Injectables, Oncology and Complex Formulations. Its units are approved by major global agencies like USFDA and EMA. The company's execution capacity and regulatory compliance make it one of India's leading CDMO companies.

5. Syngene International

Syngene International is a subsidiary of Biocon Group, founded in 1993. The company focuses primarily on Contract Research, Development and Manufacturing. Its client base includes global pharma giants such as Bristol-Myers Squibb, GSK and Amgen. Syngene's work spans from discovery to commercial-scale production, making it a true end-to-end CDMO player. Its state-of-the-art labs and USFDA approved facilities make it a strong option for global pharma R&D outsourcing.

6. Piramal Pharma

Piramal Pharma is a well-diversified pharma company with its CDMO unit known as "Piramal Pharma Solutions". Founded in 1988, the company has gradually built a strong presence in North America, Europe and Asia. Piramal focuses primarily on High Potency APIs, Injectable Drugs and Specialty Molecules. The company's CDMO business model provides end-to-end solutions — from R&D to manufacturing and packaging. Its multiple production sites are approved by international regulatory bodies such as USFDA and EMA, making it a trusted name for global clients.

7. Concord Biotech

Concord Biotech was founded in 2000 and is one of the emerging biotechnology-based CDMO companies in India. The company focuses on anti-infective, oncology and immuno-suppressant therapies, where it manufactures both APIs and formulations. Concord’s specialty is its ability to manufacture fermentation-based complex molecules at scale making it a niche CDMO partner for many global clients. Its production plants are approved by international standards such as WHO-GMP and USFDA. Despite being listed recently, Concord is rapidly making its mark in the segment and emerging as a trusted bio-CDMO company.

8. Jubilant Pharmova

Jubilant Pharmova is a pharma-focused entity of the Jubilant Group that came into existence after a demerger in 2020. The company's CDMO business operates through "Jubilant Biosys" and "Jubilant Chemsys", which provide services in drug discovery and clinical development. The company focuses on specialized areas such as oncology, neuroscience and metabolic disorders. Its R&D capabilities and USFDA approved facilities make it a trusted partner for global pharma partners. Jubilant is rapidly gaining ground in the contract research and development space.

9. Aarti Drugs

Aarti Drugs was started in 1984 and is known for its strong hold in API manufacturing. In recent years, the company has expanded its services towards the CDMO segment, especially in specialty chemicals and custom synthesis. Its manufacturing facilities are located in Maharashtra and Gujarat, which are GMP certified. Aarti Drugs' strength lies in its backward integration and cost-efficient production, allowing it to offer competitive pricing and consistent quality to CDMO clients. The company is now gradually strengthening its hold in the niche CDMO segment.

10. Dishman Carbogen Amcis

Dishman Carbogen Amcis is an Indian multinational company that specializes in custom synthesis and contract manufacturing. It was started in 1983 and is now headquartered in Ahmedabad. The company's biggest strength is its global presence - with key units in India, Switzerland, France and China. Dishman provides specialized CDMO services in Oncology, Cardiology and High Potency APIs. Its client base includes many of the world's top tier pharma companies. Dishman's business model is based on innovation and confidentiality, which makes it a differentiator in the CDMO sector.

Key Performance Indicators (KPIs)

The table below shows key financial indicators of top CDMO companies, reflecting their operational efficiency and return potential.

(Data as of 23 July 2025)

Why CDMO is a High Potential Sector for Investors

The Indian CDMO (Contract Development and Manufacturing Organization) sector is no longer just a pharma supporter but an independent growth story. Its asset-light structure and high-margin model make it attractive for long-term investors.

Global client base and currency diversification : Contracts from countries such as the US, Europe and Japan not only provide these companies with dollar revenues but also reduce currency risk and strengthen their client portfolio.

Sustainable business model and high margins : With a low capex business model, CDMO companies focus on production and delivery, leading to EBITDA margins of 25-35% better than traditional pharma companies.

Technology and innovation-led leadership : With high-entry-barrier technologies such as mRNA, ADCs, biologics and peptides, these companies are leading innovation in the industry.

FII/DII interest and IPO valuation support : Mutual funds and FIIs' stake in companies like Syngene, Suven and Concord Biotech strengthens the trust and valuations in the sector.

Key Risks in CDMO Sector Stocks

The Indian CDMO sector is growing rapidly, but it also carries some major risks that can impact long-term investments.

High reliance on clients : Many companies depend on a select few global clients for a large part of their revenue. If a major client does not renew the contract, the company's finances can be directly affected.

USFDA and other regulatory risks : Regulatory bodies like USFDA keep a strict watch on the supply chain and production quality of CDMO companies. Any certification withdrawal or warning letter can slow down the company's growth.

High R&D costs, low returns : Many times, despite heavy investment in R&D, companies do not get contracts from big clients, which reduces margins and profits.

Currency fluctuation risk : Dependence on dollar or euro denominated revenue makes companies vulnerable to foreign exchange risk. Profits may decline if the rupee strengthens.

How to invest in CDMO Stocks?

If you want to invest in this sector, then it is important to first have a basic understanding of this industry.

Why is investing through Rupeezy beneficial?

If you are thinking of investing in a growth sector like CDMO, then Rupeezy is a great platform for you. Here you get many such features which make investing even easier and affordable.

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Conclusion

The CDMO sector has become a vital part of India’s pharma growth story. India’s strong position in the global supply chain, as well as long-term outsourcing trends, make it attractive for investment. Companies like Syngene, Suven Pharma and Divi’s Labs are leading the race. If you are looking for the best CDMO stocks in India, these stocks can prove to be strong portfolio builders in the coming decade.

FAQs

Q1. What is CDMO in pharma?

CDMO means Contract Development and Manufacturing Organization, which does research, development and manufacturing of medicines.

Q2. Are CDMO stocks good for long-term investment?

Yes, the CDMO sector is considered good for investment due to long-term growth and global demand.

Q3. Which are the top CDMO companies in India?

Companies like Divi’s Labs, Syngene International, Laurus Labs and Gland Pharma are counted among the top CDMO companies.

Q4. Is the CDMO sector growing in India?

Yes, the CDMO sector is growing rapidly in India, especially due to pharma export and outsourcing demand.

Q5. How is CDMO different from regular pharma companies?

CDMO companies make medicines for other companies, while regular pharma companies make and sell their own medicines.