Companies in India continued to show a positive sentiment towards deal making in May 2026, as the latest report 'Dealtracker' from Grant Thornton Bharat indicates that despite the ongoing geopolitical tension and uncertainty in the global economy, 196 transactions valued at $11 billion were announced. Deal value as a whole eased off from the very high levels of the previous month in April, but underlying market momentum was still strong.

Key Highlights

• India Inc recorded 196 deals worth $11 billion in May, demonstrating resilience despite uncertainty.
• Billion-dollar transactions and strong private equity activity sustained deal momentum across key sectors.

India saw 190 mergers and acquisitions (M&A) and private equity (PE) transactions with a value of $10.2 billion (excluding public markets funding). Deals dropped 10% from the previous month as key Sun Pharmaceutical Industries' $11.8 billion overseas acquisition in April set a high base, while transaction value dipped 53% largely as a result.

Billion-Dollar Deals Drive Market Momentum

May saw two billion dollar deals, one in the M&A arena and another in private equity, totaling $4.6 billion, or nearly 42% of the month's value of deals.

Despite difficult global economic conditions, the Indian investment environment has also been resilient, as deal activity has stayed broadly similar to April, excluding the exceptional Sun Pharma transaction, according to Shanthi Vijetha, Partner, Deals Lifecycle at Grant Thornton Bharat.

Meanwhile, average transaction values rose in the month, aided by strategic deals by large corporates in India and continued investor appetite for the higher valued private equity opportunities, the report said.

Cross-border M&A  Leads Value Creation

There was plenty of activity on the M&A front, with 76 deals totaling 6.3 billion dollars announced in May. The volume of deals remained skewed in favor of domestic transactions, but the value of deals was split among cross-border and domestic deals.

Outbound acquisitions grew to $4.8 billion or 76% of all M&A value. The biggest sale was the $3 billion acquisition of a stake in Airtel Africa by Bharti Airtel, one of the biggest deals overseas by an Indian firm in recent years.

Inbound activity also showed signs of life, as Prudential plc announced a $368 million inbound deal for the 75% acquisition of Bharti AXA Life Insurance Company, the biggest inbound deal so far this year in 2026.

Private Equity Hits Highest Monthly Value of 2026

Private equity investments reached their strongest monthly value this year, recording 114 transactions worth $3.9 billion. However, funding remained concentrated in a few large deals.

A marquee $1.6 billion investment in Rajasthan Royals alone accounted for 42% of total private equity value during the month. The top five PE transactions collectively contributed 68% of overall investment value.

The month also saw the emergence of India’s fifth unicorn of 2026 as Skyroot Aerospace raised $60 million. Mobility platform Rapido also secured a significant $240 million funding round, underscoring investor confidence in high-growth sectors.

Telecom, Media and Consumer Sectors Attract Capital

The telecom sector was the biggest value M&A deal in May, accounting for almost 29% of the total value of deals, with Bharti Airtel's investment in Africa leading the way. In the meantime, media and entertainment are the biggest private equity investments owing to the Rajasthan Royals acquisition.

Retail and consumer businesses continued to lead in terms of deal volume, accounting for 30 PE transactions valued at $444 million, as investors sought companies in the consumer sector and those in the growth stage. There was also robust dealmaking in banking, financial services, manufacturing and pharmaceuticals, among other areas, during the month.

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IPO Market Remains Muted

The fundraising in the public markets remained light with two IPOs that raised $214 million in May while qualified institutional placements (QIPs) raised $568 million in four transactions. IPOs and QIPs accounted for $782 million of the month's total value of transactions.

The deal marketplace in India should be demonstrating resilience because of robust domestic fundamentals, growing outbound aspirations of Indian corporates and continued private equity interest in scalable businesses amid global economic downturn, industry experts say.