Mergers and acquisitions (M&As) are becoming a key growth strategy for Indian companies, with annual deal volumes more than doubling since fiscal 2017 as businesses look to scale faster, enter new markets and acquire capabilities that could take years to build organically, according to Crisil Ratings.The increase in deal-making comes against a stronger credit backdrop, with lower leverage, moderating organic capital expenditure and more prudent funding giving companies greater balance-sheet flexibility.Median net debt-to-Ebitda for Crisil-rated corporates was estimated at around 1.3 times last fiscal, down from about 2.4 times in fiscal 2017."Indian corporates are increasingly using M&As to accelerate growth, expand market access and acquire capabilities that would take years to build organically. This is reflected in annual deal volumes, which have more than doubled since fiscal 2017," said Subodh Rai, managing director, Crisil Ratings.The trend is spread across sectors, although the objectives vary. Pharma, healthcare, enterprise technology, artificial intelligence and consumer companies are using acquisitions to gain technology, talent and intellectual property. Cement and metals companies, meanwhile, are using deals for consolidation and to reduce the time needed to build capacity from four-six years to one-three years.Crisil's review of 100 large debt-funded acquisitions found that two-thirds broadly met expectations. Successful deals delivered 20-80% expansion in scale within one-two years, increased geographic reach and improved margins from the second year as synergies kicked in.However, execution remains a key risk. Among deals that fell short of expectations, integration challenges accounted for about half the cases, while regulatory delays and cross-border execution issues each contributed to roughly one-fifth."Acquisitions have largely translated into stable or positive credit outcomes. Around three-fourths of ratings were reaffirmed or upgraded following acquisitions, and about 60% of acquirers deleveraged on or ahead of plan within two years," said Manish Gupta, deputy chief ratings officer, Crisil Ratings.The benefits of scale, diversification and synergies helped offset the temporary rise in leverage after acquisitions, Gupta said. Weaker outcomes were linked to higher leverage, slower ramp-up, industry downturns and regulatory delays.