India’s healthcare industry notched deals surpassing ₹10,000 crore in Q2 FY26, with brisk M&A in hospitals, diagnostics and specialty care reflecting investor confidence in scalable, tech-driven platforms. Premium EV/EBITDA multiples—mid-teens to over 30x—underscore optimism for consolidation and sustained growth.
Diagnostics Deliver Stellar Performance
Diagnostics firms led with 10-22% YoY revenue uptick, driven by tier-3/4 expansions, B2C growth, and genomics/oncology testing demand. EBITDA margins reached 25-35%, aided by leverage, while wellness initiatives contributed up to 26% of revenues.
Hospitals Eye Capacity Ramp-Up
Multi-specialty chains reported 9-28% revenue growth, alongside 54-77% occupancy rates, a 10-16% increase in average revenue per occupied bed (ARPOB) and shifts in acuity toward oncology/cardiology. Plans include over 18,000 beds via greenfield development and acquisitions over the next 3-5 years.
“Investor interest in healthcare remains robust, reflected in sustained buyouts, strategic acquisitions and private equity investments across hospitals, diagnostics and speciality care in Q2FY26. Investors are prioritising platforms with scalable regional footprints, robust unit economics and clear expansion pathways, especially into Tier 2 and Tier 3 markets,” said Amit Gupta, Partner – Healthcare and Life Sciences Investment Banking, EY.
“The quarter highlighted the sector’s structural strength, marked by a sustained shift towards oncology, cardiology and neurology, alongside rising occupancy levels and double-digit ARPOB growth. Diagnostics players are increasingly investing in genomics, oncology and AI-led testing platforms, positioning the sector for long-term growth,” added Kaivaan Movdawalla, National Healthcare Leader, EY-Parthenon India.
FY26 Momentum Ahead
EY forecasts continued vigor from demographics, insurance penetration, and digital health, with tier-2/3 focus accelerating deals.
