India Inc recorded 196 transactions worth $11 billion in May 2026, as deal activity moderated from the previous month's elevated levels but remained resilient amid persistent global uncertainties, according to Dealtracker data released by Grant Thornton Bharat. 

Excluding public market activity, the month saw 190 mergers and acquisitions (M&A) and private equity (PE) transactions valued at $10.2 billion. Deal volumes declined 10% month-on-month while values fell 53%, primarily due to the exceptionally high base in April, which was driven by Sun Pharmaceutical Industries's $11.8 billion acquisition of Checkpoint Therapeutics. 

Despite the moderation, May was supported by two billion-dollar transactions, one each in M&A and private equity, which together contributed $4.6 billion, accounting for nearly 42% of the month's total deal value. 

"May deal activity was similar to April volumes and values after adjusting for the $11 billion Sun Pharma deal, indicating sustained momentum and resilience in the deal market despite continued global uncertainty," said Shanthi Vijetha, Partner, Deals Lifecycle, Grant Thornton Bharat. She said that average deal values increased during the month, supported by stronger strategic intent among large domestic corporates and robust investor appetite for high-value private equity fundraises. "The deal market continues to show consistency in participation as capital remains focused on strategic relevance and high-value opportunities," she added. 

M&A activity steady; outbound deals drive value 

M&A activity remained stable with 76 transactions worth $6.3 billion during May. While domestic deals continued to dominate volumes, cross-border transactions drove overall value creation. 

Outbound deals accounted for $4.8 billion, representing 76% of total M&A value. The segment was led by Bharti Airtel's $3 billion increase in stake in Airtel Africa plc. The transaction marked the largest outbound acquisition in Africa by an Indian company and the biggest telecom deal since August 2024. 

Inbound deal activity also gained momentum, recording six transactions worth $393 million. The largest was Prudential plc's acquisition of a 75% stake in Bharti AXA Life Insurance Company Ltd for $368 million, making it the largest inbound transaction announced so far this year. 

Domestic M&A transactions accounted for 61% of overall deal volumes, highlighting continued consolidation across sectors. 

PE investments hit year's highest monthly value 

Private equity activity recorded 114 transactions worth $3.9 billion, with aggregate deal values reaching their highest monthly level of 2026. However, investment activity remained concentrated in a handful of large transactions. A marquee $1.6 billion investment in Rajasthan Royals accounted for 42% of total PE value during the month. The top five PE transactions together contributed 68% of overall private equity deal value. 

The month also witnessed the emergence of the fifth unicorn of 2026, as Skyroot Aerospace raised $60 million. Meanwhile, Rapido secured $240 million, among the largest recent investments in India's mobility and transportation sector. 

IPO market remains subdued 

Public market fundraising remained muted during May, with only two initial public offerings raising $214 million. 

Qualified Institutional Placement (QIP) activity, however, remained steady, with four issuances collectively mobilising $568 million. Together, IPOs and QIPs contributed $782 million to the month's overall transaction value, reflecting a cautious but active capital-raising environment. 

Sectoral trends 

Telecom emerged as the highest-value M&A sector during the month, contributing nearly 29% of total M&A value, largely driven by Bharti Airtel's stake increase in Airtel Africa. 

Media and entertainment led private equity deal values, supported by the $1.6 billion investment in Rajasthan Royals, which accounted for 97% of the sector's value and stood as the largest PE transaction of the month. 

Retail and consumer remained the most active private equity sector by volume, recording 30 transactions worth $444 million, reflecting sustained investor interest in consumer-facing businesses and growth-stage brands. 

Banking and financial services continued to attract strong investor attention, featuring among the top sectors by both volume and value. Key transactions spanned insurance, fintech and asset management, including Prudential's acquisition of a majority stake in Bharti AXA Life Insurance. 

Manufacturing maintained strong strategic momentum, emerging as a joint leader in M&A volumes with 14 deals, alongside the pharmaceutical sector. The sector also ranked among the top contributors by value, underscoring ongoing consolidation and capacity expansion across industrial businesses.