India’s M&A market is moving beyond recovery and into a more deliberate phase of evolution. Over the past 12-18 months, the pace of dealmaking and the intent behind it have changed drastically. Companies are moving away from opportunistic transactions to more deliberate, strategy-led acquisitions. 

In previous cycles, transactions were frequently influenced by the availability of capital, assets or timing. Currently, they are progressively guided by clarity: understanding the sectors to engage, the capabilities to develop, and the value to be realised. This transition is evident across industries and company categories. 

Consolidation has re-emerged as an important strategic tool. In fragmented sectors, scale has again become critical, allowing companies to improve margins, optimise logistics, and strengthen pricing power. The cement industry illustrates this well. A series of large transactions over recent years has steadily consolidated regional capacity into a small number of dominant platforms, as leading players acquire capacity from smaller and regional operators to expand market share and geographic reach. 

At the same time, consumer companies are acquiring relevance. Traditional incumbents aim to acquire capabilities instead of developing them internally. The acquisition of a leading skincare brand by a major Indian FMCG company underscores how established companies are entering high-growth, digital-first categories through targeted acquisitions. In this scenario, speed to market and brand adjacency are becoming more important than internal incubation. 

A similar pattern is visible in industrial and conglomerate-led expansion. Large business groups are using M&A to reposition themselves into new growth areas instead of relying solely on legacy businesses. The entry of a leading Indian conglomerate into paints and mobility, including its automotive collaborations, shows a deliberate acquisition strategy to participate in sectors with long-term potential. 

Beyond acquisitions, companies are focussing on value creation through portfolio restructuring. One of India’s largest automobile manufacturers provides a strong example of this approach. The company’s combination of global acquisitions and the demerger of passenger and commercial vehicle divisions is aimed at sharpening its strategic focus and unlocking value across distinct business segments. 

Companies are also increasingly using M&A to strengthen control across the value chain. Instead of working within isolated systems, Indian companies are connecting their upstream and downstream capabilities. This includes combining sourcing, logistics, distribution and direct consumer access. Such integration improves cost efficiency, reduces dependency risks and strengthens customer engagement. Activities that were earlier outsourced or managed through collaborations are increasingly being brought in-house through targeted acquisitions. 

Companies are adopting a more structured approach to sequencing growth. A major global beverage franchise bottling company has expanded through successive acquisitions of franchise territories and adjacent markets, steadily deepening its distribution footprint. This approach reflects a broader trend of building dominance in core areas before expanding into adjacent markets. 

These developments point to a clear shift in mindset. Deals are no longer evaluated purely on entry multiples or long-term growth narratives. Greater emphasis is being placed on strategic fit, including whether an acquisition strengthens market position, accelerates capability building or improves control over critical elements of business. 

A shift is also visible in how companies are responding to evolving business models. Digital capabilities, data-led decision-making and automation are no longer baseline requirements. Companies increasingly turn to acquisitions to quickly bridge capability gaps instead of building them gradually. This trend is no longer confined to technology-led sectors; it is equally evident across manufacturing, consumer and financial services. 

Looking ahead, the deal environment is likely to become more competitive and demanding. As structured M&A programmes gain traction, the availability of high-quality assets will tighten. Differentiation will increasingly come from clarity of strategy rather than access to capital. Companies that move early, supported by a well-defined thesis on sectors and capabilities, will have an advantage over those that react opportunistically. 

M&A playbooks are becoming sharper across corporate India. M&A will be used to enter new businesses and build leadership positions through consolidation in core sectors, the acquisition of new-age capabilities and expansion across geographies and value chains. At the same time, portfolio churn is expected to increase, with companies actively exiting sub-scale or non-strategic businesses to free up capital and management bandwidth. 

Over the coming years, the most successful companies will treat M&A as a continuous capability rather than a periodic exercise. This requires investing in internal teams, developing repeatable processes and linking every transaction to a clear strategic outcome. The move from scarcity to scale is therefore about using M&A with intent and confidence to shape the enterprise’s future. 

(Sen is Partner, Deloitte India; Bhutani is Director, Deloitte India. Views are personal.)