The Indian healthcare and pharmaceutical sector witnessed strong deal momentum in the third quarter of 2025, according to Grant Thornton Bharat’s Pharma and Healthcare Dealtracker. The sector recorded a total of 72 transactions valued at US$ 3.5 billion—representing a 28 per cent rise in deal volume and a remarkable 166 per cent increase in deal value compared with the previous quarter.

The quarter included three IPOs worth US$ 428 million and one Qualified Institutional Placement (QIP) worth US$ 88 million. Excluding public market activity, private deals accounted for US$3 billion across 68 transactions, reflecting a sharp rebound in investor sentiment. This surge was primarily driven by seven high-value deals worth US$ 2.6 billion, underscoring renewed investor confidence in scale, consolidation, and innovation across the pharma, biotech, and hospital segments.

Commenting on the trend, Bhanu Prakash Kalmath S J, Partner and Healthcare Industry Leader, Grant Thornton Bharat, said: “Q3 marked a resurgence in deal activity, driven by a healthy mix of scale, capability, and innovation-led investments. The momentum in pharma and biotech, supported by strategic consolidations, signals growing confidence in India’s life sciences potential. At the same time, continued investor interest in hospitals, single-specialty formats, and wellness platforms highlights the sector’s evolution toward clinical excellence, wider reach, specialisation, and technology-led consumer-centric care. Despite global uncertainties, the sustained flow of capital reflects the long-term resilience and structural growth of India’s healthcare ecosystem.”

Mergers and Acquisitions (M&A): M&A activity surged in Q3 2025, with 36 deals worth US$ 2.5 billion—a 57 per cent rise in volumes and a 12.2-fold increase in value over the previous quarter. Domestic consolidation accounted for 73 per cent of total deal value, reflecting strong interest in scaling hospital networks and pharmaceutical portfolios. The highlight of the quarter was Torrent Pharma’s US$ 1.4 billion acquisition of a 46 per cent stake in JB Chemicals & Pharmaceuticals, strengthening its position in high-growth therapeutic and chronic care segments. Outbound M&A activity also reached record highs, growing 5.3 times over the last quarter as Indian players pursued cross-border acquisitions in pharma, hospitals, and medical devices to expand global capabilities and diversify portfolios.

Private Equity (PE): Private equity investment in the healthcare and pharmaceutical sector totalled 32 deals worth US$ 425 million, marking a 3 per cent decline in volume and a 27 per cent drop in value compared with the previous quarter. Despite the dip, investor focus remained strong on health tech, wellness, and pharma services, particularly in early- and mid-stage investments. PE investors continued to prioritise high-quality operating assets in hospitals, medical devices, and pharma services, alongside digital health and affordable access models—indicating a clear preference for scalable, outcome-driven platforms.

Public Market Activity (IPOs and QIPs): Public market activity rebounded in Q3, with three IPOs raising US$ 428 million and one QIP raising US$ 88 million, together exceeding US$ 500 million. This reflected selective investor interest in specialty and science-led platforms. The quarter saw successful IPOs from Anthem Biosciences, Amanta Healthcare, and Anlon Healthcare, while Navin Fluorine’s QIP added to the capital raised, signalling renewed confidence in the sector’s fundamentals and growth outlook.

Sector Overview: The quarter highlighted strong performance across key segments. Pharma and biotech led the deal activity, shifting focus from active pharmaceutical ingredients (APIs) to formulations, contract development and manufacturing (CDMO), and research-led platforms—demonstrating investor preference for integrated models. The hospital segment recorded 19 deals worth US$ 264 million, with multi-specialty consolidation gaining traction in western India and NCR, and single-specialty formats such as dialysis, IVF, oncology, and women and childcare driving volumes.

Health tech maintained steady activity with moderate valuations, concentrating on digital health, AI diagnostics, and patient engagement solutions. Wellness and preventive care continued to grow, supported by rising consumer awareness, nutraceutical innovation, and digital-first health platforms. The medical devices segment saw strategic M&A activity, especially in orthopaedic and cardiology devices, with outbound deals expanding global market access. Meanwhile, the diagnostics and homecare segments experienced selective consolidation, favouring scalable, regional, and asset-light platforms.

Overall, the third quarter of 2025 reinforced India’s position as a resilient and fast-evolving healthcare and life sciences hub, driven by specialised investments, innovation, and growing global competitiveness.