India’s dealmaking activity hit a record high in volume terms in the first quarter of 2026, even as total deal values nearly halved due to a sharp drop in large-ticket transactions, according to Grant Thornton Bharat’s latest Dealtracker report.

The January–March quarter saw 686 deals worth $16 billion, marking a 5% sequential rise in volumes, while overall deal values declined 48% quarter-on-quarter. The fall was largely attributed to a steep decline in billion-dollar transactions, with just two deals worth $4.1 billion, compared to seven deals worth $15 billion in the previous quarter.

Public market activity mirrored the cautious sentiment, with IPO and QIP issuances dropping 63% in volume and 78% in value, reflecting investor wariness amid global uncertainties.

Despite the moderation in values, underlying deal momentum remained intact. “Transaction volumes have now grown for four consecutive quarters, underlining resilience in India’s deal ecosystem,” said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat, pointing to strong domestic fundamentals and sustained investor confidence.

M&A activity stays steady, outbound deals shine

Mergers and acquisitions (M&A) recorded 271 deals worth $6.9 billion, with values declining 59% due to the absence of large strategic transactions. Domestic deals dominated with 193 transactions worth $2.7 billion, while inbound activity fell to $334 million, its lowest since Q3 2023.

Outbound M&A emerged as a bright spot, contributing 56% of total M&A value across 56 deals, signalling growing global ambitions of Indian companies. A standout transaction was Coforge’s $2.4 billion acquisition of Encora, among the largest IT services deals by an Indian firm.

Private equity shifts to mid-market bets

Private Equity (PE) activity remained robust, with 415 deals worth $9.1 billion. While volumes rose 9%, values declined 34%, indicating a pivot towards smaller transactions. The average deal size dropped to $21.8 million from $36.3 million in the previous quarter.

Investor appetite for high-growth firms persisted, with three new unicorns—Neysa Networks, Juspay, and Neo Asset Management—raising a combined $703 million.

Sectoral trends highlight consumption, tech dominance

Retail and consumer led activity with 145 deals (21% share), followed by pharma, healthcare and biotech (75 deals) and manufacturing (71 deals). By value, IT and ITES topped the charts with $3.5 billion (22% share), while energy deals stood at $2.2 billion, driven by renewable investments.

Media and entertainment also saw significant traction, with $2 billion in deals, including a marquee $1.8 billion acquisition of Royal Challengers Bengaluru.

Overall, while the absence of mega deals weighed on aggregate values, the steady rise in deal volumes and continued investor participation underscore the structural strength of India’s dealmaking landscape.