Aurobindo Pharma Buys Khandelwal Labs’ Non-Oncology Business for ₹325 Crore

Aurobindo Pharma, through its wholly owned subsidiary Auro Pharma, has acquired the non-oncology prescription formulations business of Khandelwal Laboratories for ₹325 crore. The deal was signed and completed on January 1, 2026, and came into effect on the same day.

The transaction does not require any regulatory or government approvals.

Aurobindo Pharma Share Price Movement

Aurobindo Pharma share price (NSE: AUROPHARMA) reacted positively to the announcement and rose over 1.5 per cent during intraday trade on Friday. The company disclosed the acquisition after market hours on January 1.

Deal Structure: ₹325 Crore Cash Transaction

The acquisition has been carried out through a slump sale and will be paid fully in cash. The final amount is subject to working capital adjustments as per the agreement terms.

Aurobindo Pharma clarified that it is not acquiring any equity stake or control in Khandelwal Laboratories. Only the non-oncology formulations business has been transferred.

What Does the Acquisition Include?

The acquired business includes:

• 23 brands sold across 67 SKUs
• 9 products in the development pipeline
• Inventory, intellectual property, employees, and contracts
• An established sales and distribution network

The product portfolio is mainly focused on anti-infective and pain management therapies.

Boost to Domestic Market Presence

Aurobindo Pharma said the acquisition will strengthen its presence in the Indian market. The additional brands in pain management and anti-infective segments are expected to complement the company’s existing product range and support domestic growth.

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Financial Performance of the Acquired Business

In FY25, Khandelwal Labs’ non-oncology business reported:

• Revenue of ₹113.53 crore
• EBITDA of ₹28.99 crore

Over the past 3 years, revenues were ₹104.98 crore in FY23, ₹114.69 crore in FY24, and ₹113.53 crore in FY25.

Aurobindo Pharma’s Recent Financials

In Q2FY26, Aurobindo Pharma posted a 4% year-on-year rise in consolidated net profit to ₹848 crore. Revenue from operations increased to ₹8,286 crore.

Conclusion

The ₹325 crore acquisition strengthens Aurobindo Pharma’s domestic portfolio, especially in pain management and anti-infective segments. With steady financials and expanded offerings, the company aims to deepen its presence in the Indian market.

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