India's single-specialty healthcare sector is experiencing a significant influx of private equity investment, rapidly gaining market share from traditional multi-specialty hospitals. According to a latest report by Avendus Capital, this focused healthcare model is poised for explosive growth, driven by superior economics, high scalability, and increasing patient demand for specialised care.
The single-specialty healthcare market, valued at Rs 126,000 crore ($15 billion) in 2024, is projected to surge to Rs 264,000 crore ($31 billion) by 2028, growing at a compound annual growth rate (CAGR) of 20 percent. This expansion is set to increase the segment's share of the total private healthcare market from 30 percent in 2024 to 40 percent by 2028.
The organised single-specialty market is projected to grow at a 24 percent CAGR, from Rs 32,000 crore ($4 billion) in 2024 to Rs 76,000 crore ($9 billion) by 2028.
Mirroring the trajectory of multi-specialty hospitals over the last decade, the market capitalisation of listed single-specialty hospitals is forecast to reach Rs 150,000 crore by FY30, a substantial increase from Rs 33,000 crore ($4 billion) in March 2025.
Private equity firms are aggressively backing these focused formats. Over the last decade, single-specialty hospitals have attracted approximately 36 percent of the total investment in the hospital sector, with their share increasing in recent years. From 2019 to early 2025, over 40 percent of hospital investments flowed into this segment.
Traditional single specialties like IVF, Oncology, and Eyecare have attracted over 70 percent of healthcare service investments in the past decade.
While more than 60 percent of total investments in emerging fields such as dental, urology/nephrology, and skin & hair care have occurred in the last 2-3 years, signaling rising investor interest.
Significant deal flow since 2015, IVF and Oncology have each seen cumulative private equity investments of over Rs 8,000 crore ($1 billion), while Eyecare has attracted Rs 6,700 crore ($0.8 billion).
Why investors are betting big?
The appeal of the single-specialty model lies in its robust and replicable business fundamentals. According to the Avendus report, these chains offer a compelling blend of clinical excellence and financial performance.
Single-specialty centres demonstrate strong financial health. Mature centres typically achieve EBITDA margins of over 20 percent and a Return on Capital Employed (ROCE) of 30 percent or more. Certain specialties, like IVF, can generate a mature centre-level ROCE of over 100 percent.
With lower capital expenditure, streamlined standard operating procedures (SOPs), and customizable capacity, the single-specialty model is inherently more scalable than its multi-specialty counterparts.
These centres provide a customised patient experience with lower turnaround times. The focused approach on a single set of ailments leads to enhanced clinical expertise and targeted innovation in equipment.
The fragmented nature of these markets presents a viable M&A roll-up strategy, which is particularly attractive for private equity-backed platforms looking to consolidate and scale rapidly.
The growth runway for single-specialty healthcare in India remains long and promising. The sector is expected to continue capturing market share from multi-specialty hospitals and standalone doctor practices, driven by branded consumer appeal and greater accessibility.
While currently concentrated in metro and Tier 1 cities, significant growth opportunities exist in expanding into Tier 2+ towns, where large gaps in quality healthcare remain.
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