Intermittent drought and an incidence of grain mold disease are the two major constraints affecting sorghum production and productivity. The study aimed at developing drought-tolerant sorghum varieties possessing a high protein content and tolerance to grain mold with stable performance using additive main effects and multiplicative interaction (AMMI) and genotype and genotype × environment interaction (GGE) biplot methods. Systematic hybridization among the 11 superior landraces resulted in subsequent pedigree-based breeding and selection from 2010 to 2015 evolved 19 promising varieties of grains such as white, yellow, and brown pericarp grains. These grain varieties were evaluated for their adaptability and stability for yield in 13 rainfed environments and for possessing tolerance to grain mold in three hot spot environments. A variety of yellow pericarp sorghum PYPS 2 (3,698 kg/ha; 14.52% protein; 10.70 mg/100 g Fe) possessing tolerance to grain mold was identified as a stable variety by using both AMMI and GGE analyses. Four mega-environments were identified for grain yield and fodder yield. Sorghum varieties PYPS 2, PYPS 4, PYPS 8, and PYPS 11 were highly stable in E2 with a low grain mold incidence. Besides meeting the nutritional demand of smallholder farmers under dryland conditions, these varieties are suitable for enhancing sorghum productivity under the present climate change scenario.