India’s pharma and healthcare sector recorded 71 deals amounting to USD 2.6 billion in Q1 2025, according to the Grant Thornton Bharat Pharma & Healthcare Dealtracker. While this marks a 5 per cent decline in deal volume and a 69 per cent drop in deal value compared to Q4 2024, the report notes continued investor interest.
Mergers and acquisitions (M&A) accounted for 57 per cent of the total deal value, while private equity (PE) made up 59 per cent of the overall deal volume. Excluding IPOs and qualified institutional placements (QIPs), the quarter recorded 67 transactions valued at USD 2.1 billion. This represents a marginal 3 per cent decline in volume and a 70 per cent drop in value from the previous quarter. The lower value is largely attributed to the absence of the USD 5 billion Aster DM Healthcare–Quality Care India merger that had influenced Q4 2024 figures.
When adjusted for that outlier, Q1 2025 shows a 15 per cent increase in deal value. On a year-on-year basis, the sector saw a 34 per cent rise in volumes and a 326 per cent increase in value. Six transactions in the quarter exceeded USD 100 million—twice the number from the previous quarter—indicating continued investor interest in scalable investments.
Bhanu Prakash Kalmath S J, Partner and Healthcare Services Leader, Growth at Grant Thornton Bharat, said, “Investor interest in India’s healthcare and pharmaceutical landscape remains resilient, with strong momentum in health tech, CDMO/API manufacturing, single-specialty care platforms and consolidation in multi-specialty hospital. The sector’s shift toward regulated market access, digital innovation, and scalable consumer health models continues to drive deal flow. While the fundamentals remain robust, macroeconomic pressures and potential US tariff measures may moderate deal values and volumes in the near term. Nevertheless, the sector presents compelling opportunities for both strategic and financial investors looking to tap into India’s evolving healthcare ecosystem.”
M&A activity in Q1 2025 comprised 25 deals worth USD 1.5 billion, with volumes stable compared to the previous quarter. Despite a 76 per cent drop in M&A values from Q4 2024—again due to the exclusion of the Aster DM mega-merger—the underlying trend remains steady. Domestic deals accounted for 68 per cent of deal volume, while outbound transactions led in value. Three outbound deals valued at over USD 100 million contributed 79 per cent of the total M&A value.
Outbound M&A activity reached its highest levels in six years (volume) and two years (value), as Indian pharma firms sought access to regulated markets and capabilities in CDMO/API and specialty portfolios.
The largest M&A deal in the quarter was Intas Pharmaceuticals’ USD 558 million acquisition of Udenyca from Coherus Biosciences, which represented nearly 27 per cent of total sector value. Sun Pharma’s USD 355 million acquisition of Checkpoint Therapeutics reflected ongoing consolidation efforts in oncology. The top five M&A transactions made up 86 per cent of the total M&A value.
In the private equity space, 42 deals amounting to USD 562 million were recorded in Q1. This marks slight quarter-on-quarter changes of 2 per cent in volume and 7 per cent in value.
While investment levels remained subdued, this was the second-highest quarterly deal volume in the last three years.
The average PE deal size stood at USD 13.4 million, continuing a downward trend observed over the last four quarters. Most PE funding remained concentrated in early-stage rounds, particularly in health tech, wellness (sexual wellness and nutritional products), and asset-light models such as digital health platforms, diagnostic laboratories, and chronic care services.
The top five PE deals contributed 74 per cent of the total private equity value. The largest was Kotak Alternate Asset Managers’ USD 121 million investment in Tirupati Medicare.
In terms of public market activity, Q1 2025 saw three initial public offerings (IPOs) raising USD 503 million and one QIP worth USD 74 million. These listings covered companies in the hospital, medical device, and pharmaceutical sectors. The QIP was issued by a hospital chain to support regional expansion, suggesting continued institutional interest in infrastructure-led strategies within healthcare.