India pharma and healthcare deals hit record 87 in Q3 CY2026 as hospitals attract $1.8 billion in PE investments: Grant Thronton
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India’s pharmaceutical and healthcare sector recorded a quarterly high of 87 deals worth $4.3 billion in the third quarter of calendar year 2026 (Q3 CY2026), with transaction volumes increasing 34% quarter-on-quarter and 23% year-on-year, according to Grant Thornton Bharat’s latest Dealtracker. Private equity and venture capital investments, alongside public-market fundraising, supported activity across hospitals, pharmaceuticals, biotechnology, diagnostics and digital health.
Excluding public-market transactions, mergers and acquisitions (M&A) and PE/VC investments accounted for 81 deals worth $2.8 billion. The lower overall deal value compared with Q2 CY2026 was largely due to Sun Pharmaceutical Industries’ $11.75 billion acquisition of Organon 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, 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."
He went on to add, "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.”
Domestic acquisitions drive M&A activity
M&A activity rose 6% sequentially to 37 deals valued at $500 million. Domestic transactions accounted for 27 deals, or 73% of the total, as companies focused on regional expansion, smaller bolt-on acquisitions and capability building. The average deal size declined to $13.5 million from approximately $42 million in Q2, excluding the Sun Pharma–Organon transaction.
Novartis India’s $132 million acquisition of Pfizer’s Minipress trademarks and related intellectual property was the quarter’s largest M&A deal. Diagnostics consolidation also accelerated, with six transactions in Q3 against three in Q2, as operators expanded laboratory and imaging networks.
PE investments surge more than fivefold
PE/VC activity climbed to 44 deals worth $2.33 billion, compared with 26 deals valued at $444 million in Q2. Volumes increased 69%, while deal value rose more than fivefold.
KKR’s $1.4 billion investment in Medicover Hospitals India accounted for approximately 60% of quarterly PE/VC value. Rasmalai Ltd’s $332 million investment in Yatharth Hospital was the second-largest transaction. Overall, hospitals attracted around $1.8 billion across four PE transactions, representing approximately 78% of PE/VC deal value. Health technology and wellness, meanwhile, contributed 25 deals, but less than 8% of total value.
IPO fundraising hits a quarterly record
Four IPOs raised $1.27 billion, while two qualified institutional placements (QIPs) mobilised $162 million. IPO proceeds reached their highest quarterly level in the series, exceeding the $76 million raised during the first half of 2026. Manipal Health Enterprises’ $976 million listing contributed approximately 77% of Q3 IPO proceeds, highlighting the concentration of fundraising among larger issuers.
Pharma and biotechnology recorded 11 M&A deals across brands, intellectual property, active pharmaceutical ingredients, sterile manufacturing and biologics. Medical devices saw five M&A deals and five PE/VC transactions, with Kedaara Capital’s $200 million investment in Tynor Orthotics accounting for most of the segment’s PE value.
The quarter reflected broader deal activity but concentrated capital deployment. Rising demand for prevention, early diagnosis and wider healthcare access is expected to sustain investment across hospitals, pharmaceuticals, diagnostics and digital health into 2027.