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Pharma and healthcare deal activity in Q1 2026 reflects steady volumes alongside a more measured approach to capital deployment. Investors prioritise clarity of strategy, quality of assets and sustainable growth, resulting in a “many small, few large” deal environment. Domestic transactions continue across life sciences and healthcare, supported by selective outbound activity. Capability-led acquisitions gain ground, particularly in healthtech and AI-led capabilities that strengthen care delivery and operational efficiency. Single-speciality platforms, wellness and preventive care attract increasing interest, while pharma companies focus on innovation-led and core segments with a more selective approach to growth.
Deal volumes reached their highest level with 78 deals, strongly supported by PE deals which accounted for 58% of the total deals. Compared to Q1 2025, volumes increased by 8%, while values declined by 38%, primarily due to an absence of big-ticket deals.
M&A volumes remained broadly stable with 30 deals, while values fell by 40% QoQ to USD 915 million, indicating steady domestic activity. A single large outbound deal — Infosys’ USD 465 million acquisition of Optimum Healthcare accounted for nearly half of the values.
PE volumes reached their highest level at 45 deals since Q2 2022, with activity largely skewed towards early-stage investments (pre-seed to Series A), which accounted for 69% of the volumes, reflecting a continued focus on smaller-ticket, growth-oriented opportunities.
IPO activity declined sharply (7 → 1), while QIP activity rose from (1 → 2) and value was driven by one large raise – Biocon Ltd raising USD 461 million, highlighting a closed IPO window.
The Pharma and Healthcare Dealtracker Q3 2025 by Grant Thornton Bharat analyses India’s evolving life sciences ecosystem, highlighting a 28% surge in deal volumes and a 166% rise in values. The report explores M&A, private equity, and capital market activity shaping pharma, healthcare, and biotech growth.
The report captures sector-wise shifts, investor alignment with scalable and tech-integrated models, and emerging preferences in early-stage innovation.
The first quarter of 2025 reflected sustained investor attention in India’s healthcare and pharmaceutical sector, marked by consistent deal activity and strategic alignment with long-term growth drivers.
