India’s consumer sector saw 97 deals amounting to $981 million in the second quarter of 2026, showcasing resilience despite a slight decrease in deal volumes and values compared to the previous quarter. The report by Grant Thornton revealed a 34% decline in deal volumes and a 33% moderation in deal values during this period. The investment landscape appeared more selective, with a focus on strategic acquisitions and growth-stage investments in high-conviction consumer themes.
Excluding IPOs and QIPs, the sector witnessed 95 M&A and private equity or venture capital transactions totaling $918 million, surpassing Q2 2025 figures. This trend underscored the sustained investor confidence in India’s long-term consumption narrative. Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat, noted a shift in capital flow towards specialized, high-growth categories such as wellness, premium personal care, nutrition, and digital-first consumer brands. These sectors are gaining significant investor attention due to evolving consumer preferences, presenting new avenues for growth.
M&A activity in the consumer sector scaled down to 20 deals valued at $184 million, marking a nearly 50% decrease in both volumes and values from the previous quarter. Domestic transactions remained prominent, constituting 65% of deal volumes and 58% of deal value, while inbound M&A surged with doubled volumes and nearly quintupled values. Strategic acquisitions primarily aimed at bolstering market presence, expanding product portfolios, and enhancing distribution capabilities.
Private equity and venture capital (PE/VC) transactions continued to drive consumer dealmaking, with 75 deals amounting to $734 million, contributing significantly to total deal volumes and values. Despite a quarter-on-quarter moderation in funding activity, investment values remained higher than Q2 2025 levels. Investors displayed a preference for scalable companies with robust unit economics and sustainable growth, reflecting a prudent approach to capital deployment.
