Mumbai: The Indian pharmaceutical and healthcare sector experienced a sharp 70 per cent decline in deal values during the first quarter of Calendar Year 2025, with transactions totaling $2.1 billion (approximately ₹1,785 crore), compared to $6.9 billion in Q4 CY24, according to the latest Pharma and Healthcare Deal Tracker by Grant Thornton Bharat.
The steep drop in value is largely attributed to the absence of large transactions like the $5 billion merger between Aster DM Healthcare and Quality Care India Ltd, which had boosted the previous quarter’s figures.
While deal volumes marginally dipped by 3 per cent from 69 in Q4 2024 to 67 in Q1 2025, on year-on-year basis, the sector registered a 34 per cent rise in deal count and a 326 per cent surge in value compared to Q1 2024.
Despite the overall dip, the quarter saw a slight increase in high-value deals — three transactions valued at a combined $1.9 billion, up from two deals in the previous quarter.
“While average deal sizes have reduced, the sustained activity underlines continued investor confidence in digital-first and preventive healthcare models,” said Bhanu Prakash Kalmath, Partner and Healthcare Services Industry Leader, Grant Thornton Bharat LLP.
“Single-specialty healthcare platforms will likely remain in focus, although macroeconomic factors and potential US tariff measures may impact deal flow in the near term,” he added.
Out of the 67 deals in Q1 2025, 25 were mergers and acquisitions (M&A) and 42 were private equity (PE) investments. M&A dominated in terms of value, accounting for $1.5 billion (57 per cent), while PE led in volume with 42 deals, representing 59 per cent of the total.
Private equity investments stood at $562 million, reflecting growing interest in scalable and asset-light business models such as diagnostics labs, digital health platforms, and chronic care services. Investor focus also shifted toward consumer-centric, preventive care, and decentralized diagnostics during the period.
The quarter also marked a significant uptick in outbound transactions, totaling $1.2 billion — the highest quarterly outbound deal value in the last two years. In contrast, inbound and domestic deals lagged behind, at $217 million and $5 million, respectively. Inbound investment values have been on a consistent decline since Q2 2024.
