Aurobindo Pharma Subsidiary Acquires Khandelwal Laboratories Business

Aurobindo Pharma Limited has announced the acquisition of the non-oncology prescription business of Khandelwal Laboratories Private Limited, based in Mumbai. This transaction, valued at ₹325 crore, is an all-cash deal executed by Auro Pharma Limited, a wholly owned subsidiary of Aurobindo Pharma. The acquisition took effect on January 1, 2026, as per a regulatory filing by the company.

The business being acquired comprises a portfolio of 23 established brands marketed across 67 stock-keeping units (SKUs), along with nine additional pipeline products. Aurobindo Pharma plans to leverage this acquisition to bolster its offerings in the anti-infective and pain management segments within the Indian pharmaceutical market.

Khandelwal Laboratories, founded in 1973-74, has maintained a steady presence in the industry, focusing on both branded oncology and non-oncology prescription formulations. The business recorded a turnover of ₹1,135.3 million in the financial year 2024-25, with an earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹289.9 million. This financial performance indicates a stable revenue stream, underlining the potential for growth and expansion for Aurobindo Pharma.

The acquired operation includes approximately 470 field staff and a distribution network of over 1,600 stockists throughout India. This extensive infrastructure will provide Aurobindo with immediate access to a broader market, enhancing its competitive position in the domestic pharmaceutical landscape.

Auro Pharma's management expressed optimism regarding the acquisition, stating that it will not only improve the company’s growth trajectory but also expand the range of prescription products available in the market.

On January 1, 2026, shares of Aurobindo Pharma Limited saw an increase, closing up by 1.18% at ₹1,197.00 on the National Stock Exchange of India (NSE). The acquisition reflects Aurobindo's strategy to strengthen its operational capabilities and product offerings in response to the growing demand for pharmaceutical products in India.

The acquisition has been structured as a slump sale and will not include certain assets such as intellectual property, inventories, or contracts. However, it positions Aurobindo Pharma to effectively integrate the acquired business into its existing operations, enhancing its portfolio in key therapeutic areas.