India’s healthcare & pharma deals surge in Q3 2025 driven by specialised & consumer centric investments

New Delhi: According to the Grant Thornton Bharat’s Pharma and Healthcare Dealtracker, the sector witnessed robust deal momentum in Q3 2025, recording a total of 72 transactions valued at USD 3.5 billion, up 28% in volumes and 166% in value quarter on quarter. This included three IPOs worth USD 428 million and one QIP worth USD 88 million. Excluding public market activity, private deals accounted for USD 3 billion across 68 transactions, marking a sharp rebound in investor appetite.

The surge was driven by seven high value deals worth USD 2.6 billion, reflecting renewed investor confidence in scale and consolidation plays across pharma, biotech, and hospital segments, and reflecting the sector’s strong fundamentals and growth potential. 

Bhanu Prakash Kalmath S J, Partner and Healthcare Industry Leader, Grant Thornton Bharat, commented on the deal activity, “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) landscape: M&A activity surged in Q3, recording 36 deals worth USD 2.5 billion, a 57% rise in volumes and a remarkable 12.2x jump in value over the previous quarter. The surge was led by domestic consolidation, which accounted for 73% of total deal value, reflecting sustained interest in scale and integration across hospital networks and pharma portfolios. The standout transaction of the quarter was Torrent Pharma’s USD 1.4 billion acquisition of a 46% stake in JB Chemicals & Pharmaceuticals, strengthening its position in high-growth therapeutic segments and chronic care markets. Outbound activity also hit record highs, increasing 5.3x over the last quarter as Indian players accelerated cross-border acquisitions in pharma, hospitals, and medical devices to build global capabilities and diversify portfolios.

Private Equity (PE) landscape: PE in the healthcare and pharmaceutical sector saw 32 deals worth USD 425 million in Q3 2025, reflecting a 3% decline in volumes and a 27% drop in values compared with the previous quarter. Activity remained focused on health tech, wellness, and pharma services, with a clear preference for early and mid-stage investments. Investors continued to prioritise high-quality operating assets in hospitals, medical devices, and pharma services, alongside digital health and affordable access models, highlighting a sustained emphasis on scalable, outcome-driven platforms.

Initial Public Offering (IPO) & Qualified Institution Placements (QIP) Landscape: Public market activity rebounded in Q3 2025, with three IPOs raising USD 428 million and one QIP worth USD 88 million, together exceeding USD 500 million. The quarter reflected selective investor interest in specialty and science-led platforms, led by IPOs from Anthem Biosciences, Amanta Healthcare, and Anlon Healthcare, while Navin Fluorine’s QIP contributed to the overall capital raised, signalling renewed confidence in the sector.

Sector Trends:

1. Pharma and Biotech: Led deal activity with 29% of volumes. Focus shifted from API plays to formulations, CDMO, and research-led platforms, highlighting preference for integrated models.

2. Hospitals: 19 deals worth USD 264 million. Multi-specialty consolidation gained pace in western India and NCR, while single-specialty formats like dialysis, IVF, oncology, and women and child-care drove volumes.

3. Health Tech: Steady volumes, moderate valuations. Investments concentrated in digital health, AI diagnostics, and patient engagement tools.

4. Wellness and Preventive Care: Sustained growth, backed by consumer awareness, nutraceutical innovation, and digital-first health platforms.

5. Medical Devices: Episodic but strategic M&A, especially in orthopaedic and cardiology devices; outbound deals expanded global access.

6. Diagnostics and Homecare: Selective consolidation, favouring scalable, regional, asset-light platforms.

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