The sharp rise in value was driven by large outbound acquisitions, while underlying deal activity remained relatively steady
India's mergers and acquisitions (M&A) and private equity (PE) dealmaking remained strong in the second quarter of 2026 despite heightened geopolitical tensions, with overall deal values more than doubling on the back of a handful of billion-dollar transactions, according to Grant Thornton Bharat's latest Dealtracker report.A total of 565 M&A and PE deals worth $36.3 billion were announced during the quarter ended June, a 127 per cent increase in value over the previous quarter even though deal volumes declined 18 per cent. The sharp rise in value was driven by large outbound acquisitions, while underlying deal activity remained relatively steady.“India's deal activity in Q2 2026 reflects a divergence between value and volume trends compared to Q1 2026. Deal volumes declined quarter-on-quarter, while total deal values increased to $36.3 billion across 565 M&A and PE transactions, representing a 127 per cent increase over Q1 2026,” Shanthi Vijetha, Partner, Due Diligence, Grant Thornton Bharat said.Mega dealsM&A was the biggest contributor to the jump in deal values. The quarter saw 240 deals worth $27.9 billion, the highest quarterly M&A value since Q2 2022, when the HDFC-HDFC Bank merger was announced. While M&A volumes declined 12 per cent sequentially, deal values surged 302 per cent, aided by five outbound billion-dollar acquisitions."Outbound deal value increased significantly compared to Q1 2026 and accounted for 84 per cent of total M&A value," Vijetha said.The biggest transaction during the quarter was Sun Pharmaceutical Industries' $11.75-billion acquisition of Organon & Co, the largest overseas acquisition by an Indian pharmaceutical company. Other marquee deals included Bharti Airtel's $2.97-billion acquisition of a 16 per cent stake in Airtel Africa, EPL Ltd's $2-billion merger with Indovida India Pvt Ltd, VINCI Highways' $1.6-billion acquisition of Safeway Concessions' nine toll road concessions, and GMR Group's $1.05-billion transaction involving GMR Airports Holding.“Even after excluding the top five billion-dollar deals, overall M&A values increased by 23 per cent quarter-on-quarter, indicating sustained momentum across mid-market transactions,” Vijetha said.Deal shiftPrivate 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 from the previous quarter. However, average deal size increased to $25.8 million from $21.8 million, reflecting a shift towards fewer but larger transactions.The quarter also saw the emergence of four new unicorns, such as Skyroot Aerospace, Square Yards Consulting, Sarvam AI and KreditBee.Sectorally, retail and consumer remained the most active with 95 deals, followed by IT & IT-ES with 80 deals and banking and financial services with 62 deals. By value, pharma, healthcare and biotech led with $13.7 billion, followed by manufacturing at $3.5 billion, telecom at $3 billion and infrastructure management at $2.9 billion.Published on July 6, 2026
