Torrent's ₹19,480-crore JB Pharma bet made it India's second-most-valuable drugmaker

In June 2025 Torrent Pharmaceuticals, the Ahmedabad drugmaker at the heart of the Mehta family's Torrent Group, announced its biggest deal ever: buying KKR's controlling 46.39% stake in JB Chemicals & Pharmaceuticals for ₹11,917 crore, followed by a mandatory open offer that took total outlay to up to ₹19,480 crore at a ₹25,689-crore equity valuation, with a merger to follow.

The bet addressed where Torrent was stuck: a top-five Indian player in chronic therapies that wanted JB Pharma's fast-growing India franchise, entry into ophthalmology, and a contract-development-and-manufacturing (CDMO) platform for international scale. KKR, which had bought JB Pharma in 2020, exited at about five times its money, and the deal was the second-biggest in Indian pharma history after Sun Pharma-Ranbaxy.

Execution held: India's Competition Commission approved the acquisition in October 2025 with voluntary modifications, and by the December 2025 quarter Torrent had built its JB holding to about 48.8%, reporting consolidated revenue of ₹3,303 crore, up 18%, and net profit of ₹635 crore, up 26%. The merger scheme exchanges 51 Torrent shares for every 100 JB shares.

Deal of up to ₹19,480 crore at a ₹25,689-crore equity value; by Q3 FY26 Torrent held ~48.8% of JB Pharma, with revenue up 18% and profit up 26% to ₹635 crore.

Torrent bought a fast-growing branded pharma franchise plus a CDMO platform in one deal, gaining scale it could not build organically in the same timeframe.

The open offer and planned merger were set to make Torrent India's second most valued pharma company, a leap from its top-five ranking.

The ₹25,689-crore equity value and KKR's five-times exit showed the asset was expensive but proven, not a gamble on unbuilt capacity.

The family leadership pursued long-term scale, keeping Torrent's chronic-therapy focus while adding JB's brands and CDMO capacity.

When organic growth stalls, a family company can buy scale in one bold bet: Torrent's next generation bought JB Pharma's chronic-care brands and CDMO capacity, then folded it into a merger.

After CCI approval in October 2025, Torrent's JB Pharma holding reached about 48.8% by Q3 FY26, with the merger scheme initiated. The acquisition was set to make Torrent India's second most valued pharma company, behind Sun Pharma, adding JB's chronic-care brands, ophthalmology and CDMO business. Q3 FY26 results showed consolidated revenue up 18% to ₹3,303 crore and net profit up 26% to ₹635 crore, with an operating margin of 33%.