New Delhi [India], August 31 (ANI): Healthcare emerged as the second-largest sector for private credit investments in India by deployment, accounting for 13 per cent of total deal value in H1 2026. Domestic funds accounted for 74 per cent of deal value and nearly 79 per cent of deal count, according to EY Private Credit Report H1 2026.
The overall Indian private credit market recorded investments of USD 3.5 billion across more than 100 transactions above USD 10 million during the first half of 2026. This remained broadly in line with the USD 3.4 billion recorded in H2 2025. Private credit activity continued to see backing from refinancing, holding company funding, and acquisition financing despite global macroeconomic uncertainty.
Real estate led total deployment across the country, followed by healthcare and food and beverage. The performance of the healthcare sector was underpinned by investor preference for stable cash flows, defensive qualities, and scalable operations.
By ticket size, mid-sized deals between USD 10 million and USD 60 million accounted for 61 per cent of total deal value, up from 51 per cent in H2 2025. Transactions above USD 120 million dropped to 18 per cent of total deal value compared with 27 per cent in the preceding half-year.
Dinkar Venkatasubramanian, Partner and National Leader – Debt and Special Situations, EY India, said, “India’s private credit market is entering a new phase of evolution. What began as a niche source of alternative capital has become an important pillar of the country’s financing ecosystem.”
“We are witnessing the emergence of new opportunities across acquisition financing, growth capital, refinancing, special situations and value creation-led transactions,” he added.
“The increasing participation of domestic capital, continued regulatory strengthening and growing acceptance of private credit among borrowers are all contributing to a deeper and more resilient market. As India’s economy continues to expand, we believe private credit will play an increasingly important role in funding growth, enabling transformation and supporting the next generation of Indian enterprises,” Venkatasubramanian said.
Vishal Bansal, Partner, Debt and Special Situations, EY India, noted that domestic capital expansion represents a key market shift.
“The growing share of domestic capital is one of the most significant developments in India’s private credit market,” Bansal said.
“Domestic funds are increasingly identifying opportunities across refinancing, acquisition financing and special situations, particularly in the mid-market segment where demand for structured capital remains robust,” he stated.
“At the same time, regulatory developments and a broader set of financing options are improving transaction execution and supporting the continued growth of the asset class,” Bansal added.
As per the report, over the next two to three years, the Indian private credit market is projected to maintain its momentum across growth, refinancing, special situations, and M&A requirements, with infrastructure and asset-heavy sectors expected to join real estate as key deployment areas. (ANI)
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