Healthcare ranks second in private credit deals as domestic funds dominate in H1 2026: EY report
- IBEF
- September 1, 2026
Healthcare emerged as the second-largest sector for private credit investments in India by deployment, accounting for 13% of total deal value in H1 2026, according to the EY Private Credit Report H1 2026. Domestic funds accounted for 74% of deal value and nearly 79% of deal count, highlighting the growing role of domestic capital in India's private credit market. Overall private credit investments in India stood at Rs. 33,299 crore (US$ 3.50 billion) across more than 100 transactions exceeding Rs. 88.37 crore (US$ 10 million) during H1 2026. The market remained broadly stable compared with Rs. 30,045.8 crore (US$ 3.40 billion) in H2 2025. Real estate accounted for the largest share of deployment, followed by healthcare and food and beverage. Healthcare's strong position was supported by investor preference for stable cash flows, defensive characteristics and scalable operations. By ticket size, mid-sized transactions of Rs. 88.37 crore (US$ 10 million) to Rs. 530.22 crore (US$ 60 million) accounted for 61% of total deal value, compared with 51% in H2 2025, while transactions above Rs. 1,060.44 crore (US$ 120 million) accounted for 18%, down from 27% in the preceding half-year.
India's private credit market continued to receive support from refinancing, holding company funding and acquisition financing despite global macroeconomic uncertainty. The increasing participation of domestic funds, regulatory strengthening and wider acceptance of private credit among borrowers are contributing to the development of the alternative financing market. Domestic investors are increasingly identifying opportunities in refinancing, acquisition financing and special situations, particularly within the mid-market segment where demand for structured capital remains strong. Over the next two to three years, the Indian private credit market is projected to maintain momentum across growth capital, refinancing, special situations and mergers and acquisitions (M&A), while infrastructure and other asset-heavy sectors are expected to emerge as important deployment areas alongside real estate. The expanding role of private credit is expected to provide Indian businesses with additional sources of structured capital and support financing requirements across sectors.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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