India’s pharma and healthcare sector witnessed 78 deals amounting to $1.9 billion in the first quarter of 2026. The report by Grant Thornton Bharat highlighted that mergers and acquisitions made up 30 of these deals, totaling $915 million. While deal volumes remained steady, overall values were lower due to the absence of large transactions.
The report attributed the moderation in deal activity to a decrease in M&A values, although private equity investments continued with smaller ticket sizes. Investors are now focusing on scalable assets in digital health, specialized care, and consumer health sectors for long-term value creation and global competitiveness.
Domestic transactions dominated the M&A landscape, with most deals valued under $50 million, especially in hospitals and pharma segments. Private equity and venture capital activities surged with 45 deals worth $456 million, showing a 22% sequential increase. The health tech and wellness segments attracted significant investment, particularly in AI-led diagnostics and digital care platforms.
Private equity and venture capital investments were mainly in early-stage rounds, with a majority of deals falling below $50 million. Initial public offerings (IPOs) were limited, with only one IPO raising $18 million. Meanwhile, qualified institutional placement (QIP) activity saw a slight uptick, totaling $500 million from two issuances.
