India’s pharma and healthcare deal volumes hit quarterly high of 87 in Q3 2026, with deal value at USD 4.3 billion: Grant Thornton Bharat
PE/VC investments reach USD 2.3 billion, while IPOs raise USD 1.3 billion as healthcare delivery attracts capital
India’s pharma and healthcare sector recorded 87 deals worth USD 4.3 billion in Q3 2026, with deal volumes rising 34% quarter-on-quarter and 23% year-on-year, marking the highest quarterly volume in the series. Excluding public-market transactions, M&A and PE/VC activity comprised 81 deals worth USD 2.8 billion. Private capital and public-market fundraising drove deal values, while the quarter saw increased activity across pharma and biotechnology, diagnostics, hospitals, health technology and wellness. The lower overall deal value compared with Q2 was largely attributable to the USD 11.75 billion Sun Pharma–Organon transaction in the previous quarter, rather than a slowdown in underlying activity.
Bhanu Prakash Kalmath S J, Partner and Healthcare Industry Leader at Grant Thornton Bharat, commented: “India’s pharma and healthcare deal activity reflects two parallel priorities: scaling healthcare delivery and building specialised capabilities across the life sciences value chain. Large private capital investments in hospitals highlight the continued appeal of established healthcare platforms, while acquisitions in pharma and biotechnology are increasingly focused on brands, intellectual property and manufacturing capabilities. The rise in diagnostics activity also points to the importance of expanding access and strengthening regional networks. As healthcare needs evolve, businesses that combine scale with specialised capabilities will remain important to the sector’s growth.”
M&A activity recorded 37 deals worth USD 500 million in Q3 2026, with volumes increasing 6% quarter-on-quarter. Domestic transactions accounted for 27 deals, representing 73% of M&A volumes, as companies prioritised regional consolidation, bolt-on acquisitions and capability building. The average deal size declined to USD 13.5 million from approximately USD 42 million in Q2, excluding the Sun Pharma–Organon transaction, reflecting a shift towards smaller, targeted acquisitions. Novartis India’s USD 132 million acquisition of Pfizer’s Minipress trademarks and related intellectual property was the quarter’s largest M&A transaction. Diagnostics also recorded increased consolidation, with six deals in Q3, compared with three in Q2, as established operators expanded their laboratory and imaging networks.
PE/VC activity strengthened to 44 deals worth USD 2.3 billion, compared with 26 deals worth USD 444 million in Q2 2026. Deal volumes rose 69%, while values increased more than fivefold, driven primarily by KKR’s USD 1.4 billion investment in Medicover Hospitals India, which accounted for approximately 60% of quarterly PE/VC value. KKR’s investment in Medicover and Rasmalai Ltd’s USD 332 million investment in Yatharth Hospital were the two largest transactions.
Public-market fundraising strengthened during the quarter, with four IPOs raising USD 1.27 billion and two QIPs raising USD 162 million. IPO proceeds reached their highest quarterly level in the series, exceeding the combined USD 76 million raised through IPOs during the first half of 2026. Manipal Health Enterprises’ USD 976 million listing accounted for approximately 77% of quarterly IPO proceeds, indicating that fundraising remained concentrated among scaled issuers. QIP fundraising remained broadly in line with the previous quarter.
Sectoral highlights
Pharma and biotechnology: Recorded 11 M&A deals, with activity focused on brands, intellectual property, APIs, sterile manufacturing and biologics capabilities.
Diagnostics: M&A volumes rose from three deals in Q2 to six in Q3, reflecting increased consolidation of laboratory and imaging networks.
Hospitals: Attracted approximately USD 1.8 billion across four PE transactions, while M&A activity comprised nine deals worth USD 54 million.
Healthcare delivery attracted the bulk of private capital, with hospitals accounting for approximately 78% of PE/VC deal value.
Health technology and wellness: Together accounted for 25 PE/VC deals, representing more than half of private-capital transaction volumes, with investments spanning digital health, technology-enabled care and preventive healthcare.
Medical devices: Recorded five M&A deals and five PE/VC transactions. Kedaara Capital’s USD 200 million investment in Tynor Orthotics accounted for the majority of PE value in the segment.
The quarter reflected a market characterised by broader transaction activity but continued concentration of capital in a limited number of large deals. Looking ahead, evolving health needs, rising demand for prevention and early diagnosis, and the expansion of healthcare access are likely to sustain activity across healthcare delivery, pharmaceuticals, diagnostics and digital health. The ability to combine scale with specialised capabilities will remain important as the sector moves into 2027.
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