India’s healthcare deal activity crossed ₹10,000 crore in Q2 FY26, as diagnostics, specialty care and hospital platforms attracted strong investor and strategic interest, according to EY-Parthenon’s latest India healthcare transaction analysis.
The volume underscores sustained interest from both private equity and strategic investors in platforms that combine clinical strength with scalable delivery and technology-enabled services.
Diagnostics emerged as one of the most dynamic sub-segments, reporting double-digit revenue growth year-on-year. Expansion in smaller cities, broader consumer access channels and rising demand for advanced testing such as genomics and oncology contributed to performance gains, with many players achieving strong EBITDA margins as a result of network scale and operational efficiencies.
Hospital chains also featured prominently in dealmaking, supported by improving utilisation rates and rising demand for complex care. Average revenue per occupied bed climbed in the quarter, while operators announced capacity additions and future expansion plans, including greenfield projects and strategic acquisitions.
From an investment perspective, healthcare assets continued to attract premium valuations, reflecting confidence in the sector’s long-term growth trajectory. Companies that integrate care across diagnostics, outpatient services and specialty treatments, particularly those extending into tier-2 and tier-3 markets, drew significant capital interest.
Analysts tracking the sector view the Q2 activity as part of a broader shift toward consolidation and innovation in Indian healthcare, driven by demographic trends, higher insurance penetration and the increasing role of digital and technology-enhanced care delivery. Deal flow in the coming quarters is expected to remain healthy, fuelled by ongoing capacity expansion and sustained investor engagement.
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