India's Q2 deal values surge 127% to $36.3 billion on blockbuster outbound M&A despite lower volumes: Grant Thornton Bharat

India's mergers and acquisitions (M&A) and private equity (PE) deal values more than doubled in the second quarter of 2026, driven by a handful of large outbound acquisitions, even as the number of transactions declined amid a cautious investment environment.  

According to Grant Thornton Bharat's latest Dealtracker report, the combined value of M&A and PE deals surged 127% quarter-on-quarter to $36.3 billion in Q2 2026 while overall deal volumes fell 18% to 565 transactions. The report said the quarter was characterised by a few high-value strategic deals that pushed transaction values to their highest level in four years, even as broader deal activity remained relatively subdued.  

"India's deal activity in Q2 2026 reflects a clear divergence—while deal volumes moderated, deal values rose significantly. Deal values were driven by strategic outbound M&A, which demonstrates growing confidence among Indian companies in pursuing global expansions. In contrast, domestic and private equity activity remained stable or moderated, indicating a more measured investment environment in the context of global uncertainties," said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.  

M&A emerged as the biggest contributor to dealmaking during the quarter, with 240 transactions worth $27.9 billion, marking the highest quarterly M&A value since Q2 2022. Although deal volumes declined 12% sequentially, transaction values soared 302%, led by five billion-dollar cross-border acquisitions. Outbound deals accounted for 84% of the total M&A value.  

The quarter's largest transaction was Sun Pharmaceutical Industries' $11.8 billion acquisition of Organon & Co., the biggest overseas acquisition ever by an Indian pharmaceutical company. The report noted that even after excluding the top five billion-dollar transactions, M&A values were still up 23% from the previous quarter, indicating sustained momentum in larger mid-market deals.  

Private equity activity, however, moderated during the quarter. PE investors completed 325 deals worth $8.4 billion, representing a 22% decline in deal volumes and an 8% drop in values compared with Q1 2026. Despite the slowdown, average deal sizes increased, reflecting a shift towards fewer but larger investments.  

Investor appetite for high-growth businesses remained intact, with Skyroot Aerospace, Square Yards Consulting, Sarvam AI, and KreditBee joining the unicorn club during the quarter. The largest PE transaction was the $1.6 billion acquisition of the Rajasthan Royals IPL franchise by a consortium of investors, including Lakshmi Mittal and Adar Poonawalla, highlighting continued interest in premium consumer and sports assets.  

Public market fundraising showed mixed trends during the quarter. Initial public offerings (IPOs) 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 greater reliance on secondary capital markets amid evolving market conditions.  

On the sectoral front, retail and consumer led deal activity by volume 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 in deals, largely driven by the Sun Pharmaceutical–Organon acquisition. Manufacturing followed with $3.5 billion, supported by a rise in large-ticket transactions. Telecom recorded $3 billion in deal value, buoyed by a marquee cross-border transaction while infrastructure management contributed $2.9 billion, reflecting continued momentum in strategic infrastructure investments.