New Delhi, April 29 India’s pharma and healthcare sector recorded 78 deals worth $1.9 billion in Q1 2026, with deal volumes holding steady even as overall values moderated in the absence of large‑ticket transactions, a report said on Wednesday.
The report from Grant Thornton Bharat said mergers and acquisitions accounted for 30 deals worth $915 million during the quarter, with volumes remaining broadly stable and values moderating about 40 per cent sequentially.
The moderation in the deals landscape was primarily driven by softer M&A values, even as private equity activity remained resilient in terms of participation, albeit with smaller ticket sizes.
The overall trend indicated a more selective investment environment, with sustained interest in mid-market and growth-stage opportunities despite cautious capital deployment.
"Investor focus is clearly shifting toward scalable, capability-led assets, particularly across digital health, specialised care, and consumer health segments. Meanwhile, outbound expansion and portfolio realignment by pharmaceutical companies reflect a strategic pivot toward long-term value creation and global competitiveness,” said Bhanu Prakash Kalmath S.J., Partner and Healthcare Industry Leader, Grant Thornton Bharat.
Domestic transactions continued to dominate in terms of volume in the M & A landscape, the report noted. Deal sizes remained relatively small, with most transactions under $50 million, particularly across hospitals and pharma and biotech segments, pointing to sustained mid-market consolidation driven by regional hospital acquisitions and pharma deals.
Private equity and venture capital activity comprised 45 deals worth $456 million, marking the segment's highest deal volumes since Q2 2022 and up around 22 per cent rise sequentially.
Investment activity was particularly robust across health tech and wellness segments, including AI-led diagnostics, preventive healthcare, and digital care platforms, highlighting continued interest in scalable, tech-enabled healthcare models.
Early‑stage rounds dominated PE/VC volumes, with pre‑seed to Series A accounting for about 69 per cent of deal volumes and nearly 95 per cent of deals sized below $50 million.
IPO and QIP activity remained selective during the quarter, as one IPO raised $18 million, marking a sharp decline in issuances, and QIP activity picked up modestly with two issuances totalling $500 million.
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