India’s Healthcare and Pharma Sectors Surge: 72 Transactions Worth $3.5 Billion in Q3 2025, Reports Grant Thornton Bharat

The Indian healthcare and pharmaceutical sector has shown significant growth in the third quarter of 2025. According to data from Grant Thornton Bharat, there were 72 transactions totaling $3.5 billion—a 28% increase in deal volume and a remarkable 166% rise in value compared to the previous quarter.

This quarter saw three IPOs worth $428 million and one Qualified Institutional Placement (QIP) that raised $88 million. Private deals dominated, accounting for $3 billion across 68 transactions, indicating a renewed investor interest. Seven major deals alone were valued at $2.6 billion, signaling a strong rebound in confidence related to consolidation, innovation, and expansion in the pharma and biotech sectors.

Bhanu Prakash Kalmath S J, a partner at Grant Thornton Bharat, noted, “Q3 marked a resurgence in deal activity. The mix of innovation and capability-driven investments reflects growing confidence in India’s life sciences potential.” This trend highlights the sector’s move toward better clinical standards and technology-based care options.

Mergers and Acquisitions (M&A) were particularly vibrant this quarter, with 36 deals worth $2.5 billion, a 57% rise in volume. Domestic consolidation made up 73% of the total deal value. One standout deal was Torrent Pharma’s $1.4 billion acquisition of a 46% stake in JB Chemicals & Pharmaceuticals, further solidifying its footprint in crucial treatment areas. Outbound mergers also surged, growing 5.3 times as Indian firms sought global opportunities.

In terms of Private Equity (PE), there were 32 deals totaling $425 million, reflecting a slight decline in volume and a 27% drop in value. Nevertheless, investors remained interested in health tech and wellness, particularly in early-stage ventures emphasizing scalability and positive outcomes.

On the public market side, three successful IPOs raised over $428 million. The sellers, including Anthem Biosciences and Amanta Healthcare, attracted attention for their focus on specialized healthcare solutions. This influx of capital indicates heightened investor confidence in the sector.

The various segments of healthcare demonstrated strong performance. Pharma and biotech led the charge, shifting more from active pharmaceutical ingredients to comprehensive research and manufacturing models. The hospital segment also saw growth, particularly in areas such as multi-specialty and niche services like dialysis and oncology.

Health tech remained active, with investments flowing into digital diagnostics and patient engagement. Likewise, wellness sectors are booming due to growing consumer demand and innovations in nutraceuticals.

What’s worth noting is the context surrounding this surge. Historically, Indian healthcare has experienced ups and downs, but today’s investors are leaning toward well-established brands and innovative startups. Recent surveys indicate a 75% increase in consumer spending on health and wellness, demonstrating the public’s growing focus on well-being.

In summary, the healthcare landscape in India is changing rapidly. The third quarter of 2025 has showcased not only a strong expansion but also shifting trends toward innovation and specialization. As confidence and capital flow into the market, India’s healthcare sector is emerging as a critical player on the global stage.

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