India’s pharma and healthcare sector maintained steady momentum in Q1 2026 with 78 deals worth USD 1.9 billion, though values moderated without large transactions, according to Grant Thornton Bharat’s Q1 Pharma Dealtracker.
M&A activity saw 30 deals valued at USD 915 million, down 40% quarter-on-quarter due to the absence of high-value deals. Domestic consolidation dominated with smaller transactions under USD 50 million in hospitals and pharma/biotech, while outbound deals gained traction, led by Infosys Ltd’s USD 465 million acquisition of Optimum Healthcare IT.
Private equity/VC recorded 45 deals worth USD 456 million, up 22% in volume but flat in value, skewed toward early-stage healthtech, wellness, AI diagnostics, and preventive care. ChrysCapital’s USD 157 million acquisition of 71% in Novartis India Ltd was the quarter’s top PE deal.
IPO/QIP activity stayed selective with one USD 18 million IPO and two QIPs totaling USD 500 million, driven by Biocon Ltd’s USD 461 million raise.
Bhanu Prakash Kalmath S J, Partner and Healthcare Industry Leader, Grant Thornton Bharat, said, “Investor focus is clearly shifting toward scalable, capability-led assets, particularly across digital health, specialised care, and consumer health segments.”
Key trends included strong healthtech/diagnostics flow, wellness/preventive care traction, medical devices (Alkem Medtech’s USD 117 million Occlutech deal), and single-specialty platforms like IVF.
