India’s Pharma and Healthcare Sector Records Quarterly Peak of 87 Deals in Q3 2026: Grant Thornton Bharat

Summary:
India’s pharmaceutical and healthcare sectors recorded 87 deals worth US$ 4.3 billion in Q3 2026, with transaction volumes rising 34% quarter-on-quarter and 23% year-on-year, marking the highest quarterly activity in the series, according to Grant Thornton Bharat. The growth was driven by increased M&A, PE/VC investments and public-market fundraising, with hospitals attracting the largest share of private capital. KKR’s US$ 1.4 billion investment in Medicover Hospitals India was the quarter’s biggest transaction. Activity also expanded across pharmaceuticals, biotechnology, diagnostics, medical devices, health technology and wellness. Despite capital being concentrated in a few large transactions, growing demand for healthcare services, preventive care, early diagnosis and specialised capabilities is expected to support dealmaking across the sector in the coming years. 

India’s pharmaceutical and healthcare industries recorded 87 transactions valued at US$ 4.3 billion in Q3 2026, according to Grant Thornton Bharat. Deal volumes climbed 34% from the previous quarter and 23% compared with the same period last year, reaching the highest quarterly level in the series.

Excluding public-market transactions, mergers and acquisitions (M&A) and private equity/venture capital (PE/VC) activity accounted for 81 deals worth US$ 2.8 billion. Private investment and public-market fundraising contributed significantly to transaction values, while activity expanded across pharmaceuticals and biotechnology, diagnostics, hospitals, health technology and wellness. According to the report, the decline in total deal value compared with Q2 was primarily due to the US$ 11.75 billion Sun Pharma–Organon transaction completed in the previous quarter, rather than any underlying weakening in market activity.

Bhanu Prakash Kalmath S J, Partner and Healthcare Industry Leader at Grant Thornton Bharat, said: “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 comprised 37 transactions worth US$ 500 million in Q3 2026, with deal volumes increasing 6% quarter-on-quarter. Domestic deals made up 27 transactions, or 73% of the total M&A volume, indicating that companies continued to focus on regional consolidation, complementary acquisitions and the development of specialised capabilities.

PE/VC investments gained momentum, reaching 44 deals worth US$ 2.3 billion, up from 26 transactions valued at US$ 444 million in Q2 2026. Transaction volumes grew 69%, while deal values increased more than fivefold. This surge was largely driven by KKR’s US$ 1.4 billion investment in Medicover Hospitals India, which represented approximately 60% of the quarter’s total PE/VC value. KKR’s investment in Medicover and Rasmalai Ltd’s US$ 332 million investment in Yatharth Hospital were the two largest transactions recorded during the quarter.

Fundraising through public markets also gained strength, with four initial public offerings (IPOs) generating US$ 1.27 billion and two qualified institutional placements (QIPs) raising US$ 162 million.

The pharmaceutical and biotechnology segments recorded 11 M&A transactions, with companies concentrating on acquisitions involving brands, intellectual property, active pharmaceutical ingredients (APIs), sterile manufacturing and biologics capabilities.

In diagnostics, M&A volumes doubled from three transactions in Q2 to six in Q3, signalling greater consolidation among laboratory and medical imaging networks.

The hospital segment attracted approximately US$ 1.8 billion through four PE transactions, while M&A activity included nine deals valued at US$ 54 million. Healthcare delivery received the largest share of private investment, with hospitals accounting for approximately 78% of total PE/VC deal value. Health technology and wellness collectively recorded 25 PE/VC transactions, representing more than half of all private-capital deal volumes. Investments covered digital health, technology-enabled care and preventive healthcare. The medical devices segment registered five M&A deals and five PE/VC transactions. Kedaara Capital’s US$ 200 million investment in Tynor Orthotics contributed the majority of PE investment value in this segment.

The quarter demonstrated a market with wider transaction participation, although a substantial proportion of capital continued to be concentrated in a small number of large deals. Looking ahead, changing healthcare requirements, growing interest in prevention and early diagnosis, and efforts to broaden access to medical services are expected to support dealmaking across healthcare delivery, pharmaceuticals, diagnostics and digital health. Grant Thornton Bharat noted that companies capable of combining operational scale with specialised expertise will remain important to the sector’s development as it enters 2027.