Deal activity in India had a measured beginning in 2026, with 207 deals totaling $7.2 billion in January. The private equity sector remained strong, recording 126 deals valued at $2.7 billion, showing sustained investor interest despite a softer overall deal environment. The report highlighted a drop in the average PE deal size to $21.6 million, indicating a preference for smaller investments in growth and expansion-stage companies.
The Indian deal ecosystem experienced a slowdown in activity due to the absence of large transactions, with volumes and values decreasing by 11% and 60% respectively on a month-on-month basis. Excluding public market activity, 199 deals worth $5.9 billion were recorded, showing an 8% decline in volumes and a 56% decrease in values compared to the previous month. Capital markets remained cautious but accessible, with three IPOs raising $0.5 billion and five QIPs mobilizing $0.8 billion, providing avenues for capital deployment.
IT and ITeS sectors led deal values with 19 deals worth $2.4 billion, while Retail and Consumer sectors were most active in terms of volume, with 39 deals. Banking and Financial Services saw values correct to $466 million with 17 deals, reflecting a high base effect from December, while fintech activity remained strong. The report emphasized that policy continuity, infrastructure-led growth, and capital formation priorities, along with expectations from the Union Budget 2026 and progress on the India-EU trade agreement, will influence dealmaking sentiment in early 2026.
