India experienced a substantial increase in deal values during the second quarter of 2026, with mergers and acquisitions (M&A) and private equity (PE) deals reaching a combined value of $36.3 billion, marking a 127% surge from the previous quarter. According to a report by Grant Thornton Bharat, M&A transactions worth $27.9 billion were the primary driver of this growth.
Despite a 12% decline in M&A deal volumes, the values soared by 302%, driven by five billion-dollar cross-border acquisitions. Outbound deals constituted 84% of the total M&A value, showcasing Indian companies’ confidence in global expansion opportunities. Notably, the largest transaction was an $11.8 billion overseas acquisition by an Indian pharmaceutical company, marking a significant milestone.
Private equity activity, on the other hand, saw moderation with 325 deals amounting to $8.4 billion, reflecting a 22% drop in volume and an 8% decrease in value compared to the previous quarter. However, there was a noticeable trend towards larger investments as average deal sizes increased, indicating a shift in investment patterns.
Shanthi Vijetha, Partner at Grant Thornton Bharat, highlighted the divergence in India’s deal activity, with a sharp rise in deal values driven by strategic outbound acquisitions while domestic and private equity deals remained relatively subdued amidst global uncertainties. The report also pointed out the emergence of four new unicorns during the quarter, underscoring investor confidence in high-growth businesses.
In the public markets, IPO activity remained subdued, with 11 listings raising $1.1 billion, while qualified institutional placements (QIPs) gained momentum with 16 issuances raising $2.3 billion. The retail and consumer sector led in deal volumes with 95 transactions, followed by IT and IT-enabled services with 80 deals, and banking and financial services with 62 deals. In terms of value, pharma, healthcare, and biotechnology emerged on top with $13.7 billion, followed by manufacturing with $3.5 billion, and telecom and infrastructure management with $3 billion and $2.9 billion, respectively.
