Bhupen Khakhar's Night (1996) proved the top lot of Christie's south Asian and modern art sale in London on June 11.
It sold for £434,500 ($727,788), a 73.8% increase on a £250,000 ($420,000) estimate.
The piece is typical of the artist's work, which draws from eastern and western influences. It's intensely autobiographical in its exploration of the realities gay men face in modern India.
Khakhar is rising steadily in value. In September last year, his American Survey Officer achieved $401,000 at Sotheby's New York.
His auction record stands at $771,600 for an untitled work that sold in Christie's inaugural sale in Mumbai in December 2013.
L'Orage (The Tempest), a painting by Syed Haider Raza also sold well, achieving £338,500 ($566,988).
The piece dates to 1958 and showcases Raza's mastery of post-impressionism, a movement that he was exposed to while studying in France during the 1950s.
He became India's most valuable contemporary artist when Saurashtra sold for £2.3m ($3.4m) at Christie's London in 2010.
The sale featured a range of artists from across the sub-continent, including Maqbool Fida Husein and Tyeb Mehta, and grossed a total of £2.6m ($4.4m).
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