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India’s Healthcare M&A Activity Tops Rs 10,000 Crore in Q2 FY26, Led by Diagnostics and Specialty Care: EY

The surge in deal value was underpinned by vigorous activity across hospitals, diagnostics and specialised care segments. Buyouts, minority stakes and cross-border acquisitions remained key drivers, as both private equity and strategic investors sought platforms with deep clinical expertise, scalable regional footprints and technology-enabled delivery models.

• By Newsdesk
• New Delhi
• Jan 17, 2026

News

India’s healthcare sector displayed strong merger and acquisition momentum in the second quarter of the 2025-26 fiscal year, with announced deals exceeding ₹10,000 crore, according to a new report by EY-Parthenon India. 

The surge in deal value was underpinned by vigorous activity across hospitals, diagnostics and specialised care segments. Buyouts, minority stakes and cross-border acquisitions remained key drivers, as both private equity and strategic investors sought platforms with deep clinical expertise, scalable regional footprints and technology-enabled delivery models. 

Healthcare assets continued to attract strong valuations, particularly in diagnostics and high-growth specialty areas, with enterprise value-to-EBITDA multiples for major listed players ranging from the mid-teens to over 30x — a signal of sustained investor confidence in long-term demand fundamentals. 

Operational metrics also reflected robust performance. Leading hospital networks reported a 10–16% year-on-year increase in average revenue per occupied bed, driven by pricing discipline and a shift toward higher-acuity procedures. These hospital chains are aggressively expanding capacity, planning to add more than 18,000 beds over the next three to five years via new projects and strategic acquisitions. 

Commenting on the trends, Kaivaan Movdawalla, National Healthcare Leader at EY-Parthenon India, highlighted a structural shift toward complex specialties including oncology, cardiology and neurology, which has boosted occupancy and revenue growth. He also noted that diagnostics players are climbing the value chain through investments in genomics, oncology and AI-led testing platforms - positioning the sector for sustained long-term expansion. 

The diagnostics segment stood out, with leading chains reporting revenue growth of 10–22% in Q2 FY26. Growth was strongest in Tier 3 and Tier 4 cities, supported by rapid expansion of direct-to-consumer channels and rising demand for high-complexity tests. Several companies in the space reported robust EBITDA margins between 25–35% due to operating leverage and network optimisation. 

Amit Gupta, Partner in Healthcare and Life Sciences Investment Banking at EY, added that investors increasingly favour integrated healthcare models and technology-enabled assets with clear expansion pathways into Tier 2 and Tier 3 markets, keeping deal momentum strong. 

Multi-specialty hospitals also delivered solid performance, with revenue growth of 9–28% as higher occupancy, favourable case mix and an increase in international patient volumes helped drive gains. Digital health offerings contributed meaningful incremental revenue for some operators. 

Looking ahead, EY’s report anticipates the sector will maintain momentum through the remainder of FY26, bolstered by rising healthcare utilisation, continued capacity additions and strong investor interest. While newer assets may face near-term margin pressures, the medium-term outlook remains favourable due to India’s demographic trends, expanding insurance coverage and growing demand for specialised care services.