Key Points
- Outbound deals accounted for 84 percent of total M&A value
- Largest deal was an $11.8 billion pharma acquisition
- Private equity saw 22 percent drop in volume and 8 percent in value
New Delhi, July 6. India's dealmaking landscape witnessed a sharp rise in transaction values during the second quarter of 2026, with the combined value of mergers and acquisitions (M&A) and private equity (PE) deals surging 127 per cent quarter-on-quarter to $36.3 billion, according to a report.
According to a report by Grant Thornton Bharat, M&A activity emerged as the key driver of dealmaking during the quarter, with 240 transactions worth $27.9 billion.
While M&A deal volumes declined 12 per cent quarter-on-quarter, deal values jumped 302 per cent, supported by five billion-dollar cross-border acquisitions, it added.
Outbound deals accounted for 84 per cent of the total M&A value, reflecting growing confidence among Indian companies in pursuing global expansion opportunities.
M&A surge drives deal value to four-year high
The largest transaction of the quarter was an $11.8 billion overseas acquisition by an Indian pharmaceutical company, making it the biggest outbound acquisition by an Indian pharma firm.
Meanwhile, private equity activity moderated during the quarter, with 325 deals worth $8.4 billion, down 22 per cent in volume and 8 per cent in value compared to the previous quarter.
Despite the slowdown, average deal sizes increased, indicating a shift towards fewer but larger investments.
Private equity activity moderates despite growth in deal sizes
Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat, said India's deal activity reflected a divergence, with deal values rising sharply on the back of strategic outbound acquisitions even as domestic and private equity activity remained relatively measured amid global uncertainties.
The report further noted that investor confidence in high-growth businesses remained resilient, with four new unicorns emerging during the quarter.
The largest private equity transaction was the $1.6 billion acquisition of the Rajasthan Royals IPL franchise.
In the public markets, IPO activity remained subdued, with 11 listings raising $1.1 billion during the quarter.
In contrast, qualified institutional placements (QIPs) gathered pace, with 16 issuances raising $2.3 billion.
Among sectors, retail and consumer led deal volumes with 95 transactions, followed by IT and IT-enabled services (80 deals) and banking and financial services (62 deals).
In terms of value, pharma, healthcare and biotechnology topped the list with $13.7 billion.
Manufacturing followed with $3.5 billion, while telecom and infrastructure management recorded deal values of $3 billion and $2.9 billion, respectively.
–IANS
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