New Delhi, Jan 16 (NationPress) The healthcare sector in India, which has shown remarkable resilience during Q2FY26, is projected to continue its growth trajectory throughout the remaining months of FY26, according to a report released on Thursday.

The analysis by EY-Parthenon indicates that the sector demonstrated robust performance in Q2FY26, driven by increasing demand for advanced clinical specialties, consistent capacity expansion by hospital chains, and significant consolidation within diagnostics.

This growth momentum is set to persist, fueled by a rise in healthcare utilization, the introduction of new capacities, and ongoing investor enthusiasm.

Although there may be temporary margin pressures for newly established facilities, the medium-term outlook remains favorable, supported by positive demographic trends, broader insurance coverage, and a growing need for specialized care, the report suggests.

Additionally, the quarter saw a strong wave of mergers and acquisitions.

During Q2FY26, the healthcare industry witnessed transactions exceeding Rs 10,000 crore across various sectors, including hospitals, diagnostics, and specialty care. This encompassed buyouts, minority stakes, and cross-border acquisitions.

Healthcare assets continue to attract premium valuations, especially in diagnostics and rapidly growing specialty segments.

Remarkably, the average revenue per occupied bed (ARPOB) among leading hospital networks surged by 10-16% year-on-year. Major hospital chains are also aggressively pursuing expansion.

“Q2FY26 highlights the enduring strength of India’s healthcare sector. The notable trend is a sustained shift towards high-acuity specialties such as oncology, cardiology, and neurology, as evidenced by increased occupancy rates and double-digit ARPOB growth among prominent hospital networks,” commented Kaivaan Movdawalla, National Healthcare Leader, EY Parthenon India.

“Simultaneously, diagnostics companies are strategically advancing up the value chain, with accelerated investments in genomics, oncology, and AI-driven testing platforms. This combination of clinical depth, asset expansion, and technological innovation positions the sector for sustainable, long-term growth,” Movdawalla added.

While major hospital chains intend to add over 18,000 beds in the next three to five years, diagnostic firms reported year-on-year revenue growth of 10-22% in Q2FY26.

This growth was primarily propelled by increasing volumes in Tier 3 and Tier 4 cities, along with the rapid expansion of B2C channels and heightened demand for complex testing.

Several diagnostics companies also recorded EBITDA margins ranging from 25-35%, bolstered by operational leverage and network optimization, as noted in the report.