Mergers and acquisitions (M&A) and private equity (PE) deal value in India more than doubled in Q2 2026 despite decline in overall deal count. The value of M&A and PE deals increased 127% quarter-on-quarter to $36.3 billion, while the number of deals decreased by 18% to 565, the current report from Grant Thornton Bharat (GTB) showed, with the combined total value representing the highest quarter-on-quarter figure in four years, mainly due to a few large outbound transactions.
Key Highlights
- India's M&A and PE deal value jumped 127% to $36.3 billion in Q2 2026, despite fewer deals.
- Sun Pharma's $11.8 billion Organon acquisition marked India's largest-ever overseas pharma deal.
A Quarter of Divergence: Fewer Deals, Bigger Cheques
“In Q2 2026, the deal activity in India clearly showed a split between deal volume slowing down and deal value accelerating, with the latter showing a significant rise,” said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat. Deal values were primarily fuelled by strategic outbound M&A, and she added that it reflected increasing confidence among Indian companies to expand overseas, though domestic and PE activity remained comparatively stable, despite the global uncertainty.
M&A Hits Four-Year High on Cross-Border Megadeals
M&A transactions accounted for the largest share of deals, making up 240 transactions valued at $27.9 billion, the highest quarterly M&A value since Q2 2022. The number of deals decreased by 12% quarter on quarter, while transaction value increased by 302% on the back of 5 billion cross-border deals. Outbound deals also made up 84% of the overall M&A value.
The deal of the quarter was the Organon & Co. acquisition by Sun Pharmaceutical Industries, worth $11.8 billion, the biggest overseas acquisition by an Indian pharma firm. Strikingly, even without the top five billion dollar deals, the value of M&A transactions was 23% higher quarter-on-quarter, suggesting continued strength in the mid-market.
Private Equity Activity Cools, But Ticket Sizes Grow
PE investors finished 325 transactions totaling $8.4 billion, which represents a 22% decline in number and an 8% decrease in value compared to Q1 2026. Average deal sizes increased, though, despite the slowdown, indicating a trend toward fewer, larger investments. Investor interest in high-growth companies remained strong, as Skyroot Aerospace, Square Yards Consulting, Sarvam AI and KreditBee all joined the unicorn club in the quarter.
Investor appetite for premium consumer and sports assets continued to be strong with the biggest PE transaction being the $1.6 billion deal to buy the Rajasthan Royals IPL franchise by a consortium of which Lakshmi Mittal was a part.
Also Read: RBI's M&A Funding Reforms to Hit Private Credit Returns: Moody's
IPOs Soften, QIPs Gain Ground
Public market fundraising showed mixed signals. IPO activity softened, with 11 companies raising $1.1 billion, while Qualified Institutional Placements (QIPs) gained traction - companies raised $2.3 billion through 16 QIP issuances, reflecting a greater tilt toward secondary capital markets.
Sector Snapshot: Pharma Leads by Value, Retail by Volume
By volume, retail and consumer led with 95 transactions, followed by IT & ITES with 80 deals and banking and financial services with 62 deals. By value, pharma, healthcare, and biotech topped the charts with $13.7 billion, driven chiefly by the Sun Pharma-Organon deal. Manufacturing followed with $3.5 billion, telecom recorded $3 billion on a marquee cross-border deal, and infrastructure management contributed $2.9 billion.
