In 1999, students Farhan Qureshi and Raju Rastogi of the Imperial College of Engineering in Delhi, struggle to compete within its cutthroat academic culture. Farhan is passionate about wildlife photography but chose to join in order to appease his father, while Raju is in need of a career that will extricate his family from poverty.
Their roommate, the eccentric Ranchoddas "Rancho" Shamaldas Chanchad, who is genuinely passionate about engineering, gives unorthodox answers in class and frequently clashes with the ICE director, Viru "virus" Sahastrabuddhe, since he believes that students should enjoy what they learn, despite their strict teaching model. When a student named Joy Lobo commits suicide after failing to meet a project deadline and being denied graduation by Virus, Rancho confronts Virus about the pressure placed on the students to succeed, but his rebellious behavior puts a strain on Farhan and Raju's relationships with their own families.
Raju attempts to distance himself from Rancho, but when Raju's paralyzed father needs a medical emergency, Rancho saves his life by taking him to the hospital with the help of Virus' younger daughter Pia, who begins to fall in love with Rancho. At the end of the year, Rancho is shown to have topped the school's rankings despite his disdain for its education system, while Farhan and Raju continue to fall behind.
One night, while severely drunk, the trio have a discussion where Rancho chides Farhan for abandoning his passion for photography and Raju for having developed a fear of failure, but when the two bet Rancho to propose to Pia in exchange for giving up their own fears, they decide to break into Virus' house, where Rancho confesses his feelings to Pia and the other two urinate on his property. Virus spots Raju amidst their escape and tells Raju he will be thrown out of campus unless he helps him expel Rancho. A distraught Raju attempts suicide but recovers due to committed care from his friends and family.
With a newfound perspective on his life, Raju successfully applies for a job, while Farhan receives an apprenticeship offer from his favorite photographer, Andre Istvan, and earns his father's blessings. An infuriated Virus attempts to sabotage Raju's chances of success by holding an unfairly difficult exam. With Pia's help, Rancho and Farhan break into his office to steal the exam papers and though Raju refuses to cheat, the trio is caught and expelled by Virus. Pia confronts her father over her brother's suicide, which was prompted by similar pressure placed on him by Virus to become an engineer at the expense of his own ambitions.
That night, during a rainstorm that causes widespread flooding and power outrages, Virus' older daughter Mona, who is pregnant, goes into labor. Unable to drive to a hospital, Rancho and the other students use their engineering knowledge to quickly modify a vacuum cleaner into a ventouse and deliver the baby with the help of Pia through a webcam. A grateful Virus acknowledges Rancho as an extraordinary student and revokes the expulsions. On graduation day, Rancho promptly disappears and is never seen by his friends again.
Ten years later, Raju, now a business executive, and Farhan, a photographer, are both successful in their chosen careers. Their former classmate and academic rival Chatur, now a wealthy executive in an American company, also wants to meet Rancho again because he wants to settle a bet he had made ten years prior after being humiliated in a prank, stating that he would be more successful than Rancho. He calls them claiming to know Rancho's whereabouts in Shimla, and the three of them head out to find him.
Upon arrival, they find a different man living by Rancho's name and degree. Upon confrontation, the man explains that the "Ranchoddas Chanchad" they knew was actually "Chhote", his family's orphaned servant boy, who was tasked with completing his entire education for him all the way through, to earn a degree at ICE. He tells them Chhote had cut off all contact with his friends due to a deal with Shamaldas Chanchad, and gives them his actual address in Ladakh.
Farhan and Raju decide to bring Pia along with them. Chatur protests the detour, as it would jeopardize his planned meeting with the illustrious client "Phunsukh Wangdu," a renowned scientist, but the duo crash Pia's wedding, and whisk her away from her fiance to go and reunite with Rancho. In Ladakh, the group finds a thriving engineering school in the mountains for local children. They learn that Rancho has kept up to date with their careers and reunite with him. Rancho admits he is still in love with Pia and they decide to marry. Chatur assumes that Rancho is a lowly schoolteacher, but Rancho reveals his real name to be Phunsukh Wangdu, the successful client Chatur has been after. The friends happily celebrate their reunion and laugh at the bewildered and desperate Chatur.
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