India's pharma & healthcare sector records transactions worth $1.3 bn in Q2

Time of India

2 days ago

India's pharma and healthcare sector recorded 57 transactions valued at $1.30 billion in the quarter ended June, including IPO and QIP activity—reflecting a 20% drop in volumes and a 50% decline in values compared to the previous quarter, according to a report from
Grant Thornton Bharat
.
Excluding public market activity, the quarter saw 56 deals worth $788 million, down 16% in volumes and 62% in values.
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Despite this moderation, the sector remained a key contributor to overall deal activity, accounting for 10% of volumes and 6% of values, according to the report.
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The report captures data for the first quarter till June 26 and hence does not capture the Torrent Pharma and JB Chemicals deal that was announced end of the month. Torrent will acquire 46.39% equity stake (on a fully diluted basis) of JB Chemicals through a share purchase agreement for Rs 11,917 crores at Rs 1,600 per share.
The pharma and biotech segment led in terms of value, fuelled by large capital raises such as
Biocon
's $523 million QIP and strategic cross-border M&A.
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Hospital platforms evolved along two tracks: consolidation by multispecialty giants and regional expansion by focused, single-specialty players.
On the consumer front, HealthTech, Diagnostics, and Wellness segments made up nearly half of the deal volume, signalling sustained investor interest in digital platforms, home-based services, and preventive care.
'While deal activity in Q2 2025 moderated, investor confidence in India's pharma and healthcare ecosystem continues— especially in segments demonstrating scalability, innovation, and public market readiness,' said Bhanu Prakash, Partner and Healthcare Services Industry Leader, Grant Thornton.
'Pharma and biotech led in value, powered by capital raises and strategic cross-border moves, while hospitals and healthtech platforms continued to evolve along distinct, high-potential growth paths. As preventive care and digital health gain ground, we expect sharper, more focused bets in the second half of the year,' he said.
M&A activity in Q2 remained stable in terms of volume, recording 23 deals, but saw a sharp 86% drop in deal values compared to the previous quarter— largely due to the absence of large platform acquisitions and a non-disclosure of deal values, with 74% of transaction values undisclosed. Domestic deals dominated the landscape, contributing 87% to deal volumes and 83% to overall values.
Hospital platform consolidation was the key driver of domestic activity, while the pharma and biotech segments led in value terms.
The top M&A deal of the quarter was
Emcure Pharmaceuticals
Ltd's acquisition of Zuventus Healthcare for $84 million.
PE activity in the sector remained active in Q2 2025, recording 33 deals worth $580 million. While deal volumes declined by 21% compared to the previous quarter, values saw a modest 3% uptick—driven by a few mid-sized investments.
Notable among these were General Catalyst's $218 million infusion into PB Healthcare and Advent International's $175 million stake in Felix Pharma. These two transactions together contributed significantly to value activity, making Q2 the second-highest quarter by value since Q2 2024.
Despite the lower deal count, the segment continued to attract targeted capital, especially in hospital platforms and pharma-focused plays, reflecting investor confidence in scalable, essential healthcare models amid evolving global headwinds.
Public market activity in the sector remained subdued in Q2 2025, with no IPOs recorded—marking a sharp contrast to the previous quarter, which saw three listings raise $503 million. However, QIP activity surged during the quarter, led by Biocon's $523 million QIP. This single transaction contributed nearly 40% of the total quarterly sector deal value, highlighting the continued reliance of large, established players on selective capital raises to fund growth and strengthen balance sheets amid a muted broader capital markets environment.