Indian equity markets wrapped up 2025 on a positive note, with the Nifty extending its winning streak to a tenth consecutive year.
That said, the year is likely to be remembered more for resilience than outperformance. Despite delivering positive returns, Indian equities lagged several global and emerging market peers amid a complex mix of domestic challenges and global headwinds.
The Nifty closed 2025 with gains of 10.7%. While the benchmark remained in the green, the performance appeared muted when compared with the strong rallies seen over the past five to six years.
In relative terms, 2025 emerged as a weaker year, with Indian markets underperforming many key global indices.
Even so, a handful of stocks stood out as clear outliers. In this editorial, we highlight some of the best-performing penny stocks priced under Rs 100 that managed to shine despite a challenging environment for the broader small– and micro-cap segment.
These stocks have been shortlisted based on specific criteria, including a market capitalisation above Rs 10 billion (bn), a debt-to-equity ratio below 1, strong share price performance in 2025, consistent growth with positive sales and net profit over the past three years, and zero promoter pledge. Data source: ACE Equity.
#1 Shukra Pharma
First on the list is Shukra Pharma.
The company is engaged primarily in the business of manufacturing and marketing of pharmaceutical products.
In 2025, the stock rallied 314%, rising from Rs 14.3 on 1 January 2025 to Rs 59.3 on 31 December 2025.
Shukra Pharma Share Price Performance in 2025
Data Source: BSE
This can be on account of Shukra Pharma’s financial performance in June and September 2025, which shows a clear year-on-year improvement.
In the June 2025 quarter, the company reported revenue of Rs 54 million (m), up nearly 69% YoY from Rs 32 m in June 2024.
Net profit also doubled to Rs 10 m, compared with Rs 5 m a year ago, reflecting better operating efficiency.
In the September 2025 quarter, revenue grew modestly to Rs 59 m, marking a 5% YoY increase over Rs 56 m in September 2024. The standout was profitability, with net profit jumping to Rs 24 m from Rs 5 m last year
Apart from that, recently the company, through its subsidiary, Shukra Robotics, has signed an MoU with US-based Borns Medical Robotics Inc. to introduce and commercialise AI-enabled soft-tissue surgical robotic systems in India and select South Asian markets, subject to regulatory approvals.
Going forward, through this MoU, the company plans to expand access to robot-assisted minimally invasive surgeries and integrate AI-driven digital surgery workflows to enhance standardisation, efficiency, and overall surgical outcomes.
#2 GRM Overseas
Next on the list is GRM Overseas.
GRM Overseas is engaged in milling, processing and marketing branded and non-branded basmati rice in domestic and overseas markets.
In 2025, the stock rallied 143%, rising from Rs 66.73 on 1 January 2025 to Rs 162.1 on 31 December 2025.
GRM Overseas Share Price Performance in 2025
Data Source: BSE
This move can be attributed to back-to-back FII buying in the stock over the past three quarters. FII holdings rose from 0.17% in the December 2024 quarter to 0.72% in March 2025.
The stake increased further to 1.89% in the June 2025 quarter and then climbed sharply to 3.36% in the September 2025 quarter.
Apart from this, in December 2025, the board of GRM Overseas approved a 2:1 bonus share issue along with a proposal to increase the company’s authorised share capital. The record date for the bonus issue was set as 24 December 2025.
Going forward, the company expects its India business revenue to rise from Rs 5.4 bn in FY25 to Rs 20 bn by FY28, while international revenue is projected to grow from Rs 7.8 bn to Rs 15 bn.
#3 AB Infrabuild
Next on the list is AB Infrabuild.
The company is engaged in civil construction, focusing on developing infrastructure such as railways, roads, dams, canals, and bridges.
The company has a set of marquee clients, including Western Railways, Central Railways, the Municipal Corporation of Greater Mumbai and more.
In 2025, the stock rallied 107%, rising from Rs 8.6 on 1 January 2025 to Rs 17.9 on 31 December 2025.
AB Infrabuild Share Price Performance in 2025
Data Source: BSE
This can be as AB Infrabuild had announced a stock split, reducing the face value of its shares from Rs 10 to Rs 1.
The record date for the stock split was set as 17 October, 2025. Additionally, in December 2025, the company secured a domestic order from East Coast Railways, Indian Railways, valued at Rs 520.8 m. The contract is slated to be executed over a period of 24 months.
Going forward, the company is focusing on expanding its operational footprint and enhancing its capabilities.
#4 Arfin India
Last on the list is Arfin India.
Arfin India manufactures and trades in non-ferrous metals.
In 2025, the stock rallied 104%, rising from Rs 35.9 on 1 January 2025 to Rs 73.3 on 31 December 2025.
Arfin India Share Price Performance in 2025
Data Source: BSE
In the September 2025 quarter, FIIs added a 0.2% stake in the company.
Apart from this, in December 2025, Arfin India received a fresh order worth Rs 3,210 m from Diamond Power Infrastructure Limited for the supply of aluminium sector conductors.
The order is for a total quantity of 11,000 metric tonnes, to be executed over 11 months from January to November 2026, translating to a monthly supply of about 1,000 MT. The company estimates the monthly order value at roughly Rs 292 m, excluding GST.
Going forward, the company plans to expand its horizon by launching innovative offerings and maximising capacity utilisation.
Should You Invest in the Performing Penny Stocks?
While some penny stocks delivered spectacular returns in 2025, investing in them purely based on past performance carries significant risk.
These stocks are highly volatile, often lack liquidity, and may not have strong financial fundamentals, making them speculative in nature. For long-term wealth creation, investors should focus on well-established companies or diversified portfolios.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary