India's pharma, healthcare deals surge 166% to $3.5 bn in Q3: Report

Grant Thornton Bharat says India's pharma and healthcare sectors saw renewed investor confidence, driven by consolidation across pharma, biotech, and hospital segments

India’s pharmaceutical and healthcare sector recorded a total of 72 transactions valued at $3.5 billion in the third quarter of 2025 (July to September period), according to a report by Grant Thornton Bharat.

 

This is a 28 per cent rise in volumes and a 166 per cent rise in values compared to Q2 2025 (April to July), which saw 56 deals in the sector worth $788 million.

 

Of the $3.5 billion in deals recorded this quarter, private deals such as mergers and acquisitions (M&A) and private equity (PE) activity accounted for around $3 billion across 68 transactions in the third quarter.

   

While PE activity in the healthcare and pharmaceutical sector saw a marginal 3 per cent drop in volumes compared with the previous quarter, M&A landscape recorded a 57 per cent rise in volumes.

 

The period also included three initial public offerings (IPOs) worth $428 million and one QIP worth $ 88 million.

 

“The surge in the overall numbers was driven by seven high-value deals worth $2.6 billion, reflecting renewed investor confidence in scale and consolidation plays across pharma, biotech and hospital segments, and mirroring the sector’s strong fundamentals and growth potential,” GT Bharat said in a statement.

 

Pharma and biotech segments led the deal activity, accounting for 29 per cent of the total deal volume. “Focus shifted from active pharmaceutical ingredients (API) plays to formulations, contract drug manufacturing operations (CDMOs) and research-led platforms, highlighting preference for integrated models,” the report added.

 

The standout transaction of the quarter was Torrent Pharma’s $1.4 billion acquisition of a 46 per cent stake in JB Chemicals and Pharmaceuticals, strengthening its position in high-growth therapeutic segments and chronic care markets.

 

The report added that deal activity also remained focused on healthtech, wellness and pharma services, with a clear preference for early and mid-stage investments.

 

“Q3 marked a resurgence in deal activity, driven by a healthy mix of scale, capability, and innovation-led investments,” said Bhanu Prakash Kalmath S J, partner at Grant Thornton Bharat and Healthcare Industry Leader.

 

He added that the momentum in pharma and biotech, supported by strategic consolidations, signals growing confidence in India’s life sciences potential.