Big Bets, Fewer Deals: India Inc’s $36.3 Billion Q2 Surge Powered by Global Acquisitions

• Total deal value jumped to $36.3 billion in Q2 2026, up over 2x QoQ.

• Deal volume fell 18% to 565 transactions.

• Outbound M&A worth $23.44 billion drove 84% of M&A value.

• Private equity declined to $8.4 billion across 325 deals.

• Four new unicorns emerged despite funding slowdown.

India Inc closed fewer transactions in the second quarter of 2026—but deployed significantly more capital. According to Grant Thornton Bharat’s Q2 2026 Dealtracker, the total value of mergers and acquisitions (M&A) and private equity (PE) deals reached $36.3 billion during April–June, more than doubling compared with the previous quarter. However, the overall number of deals declined 18% to 565.

The data underscores a widening gap between deal volumes and deal values, with a handful of large overseas acquisitions accounting for most of the surge.

Cross-Border Deals Lift M&A to Four-Year High

M&A transactions contributed $27.9 billion to the quarterly total, marking the strongest quarterly value since Q2 2022, when the $40 billion HDFC Bank merger was announced.

While the number of M&A transactions dropped 12% to 240, the value of those deals skyrocketed 302% quarter-on-quarter. Five billion-dollar cross-border transactions were the primary drivers of this surge.

Outbound acquisitions alone made up 84% of total M&A value during the quarter. Their combined worth increased more than sixfold—from $3.87 billion in the first quarter to $23.44 billion in Q2.

The largest deal was Sun Pharmaceutical Industries’ $11.75 billion acquisition of Organon & Co. Other major transactions included:

• Bharti Airtel’s $2.97 billion deal involving a 16% stake in Airtel Africa

• EPL’s $2 billion transaction linked to Indovida India

• VINCI Highways’ $1.6 billion acquisition of nine toll road concessions

• GMR Group’s $1.05 billion transaction involving GMR Airports Holding

Together, these five transactions accounted for 69% of total M&A value for the quarter.

Even after excluding these blockbuster deals, M&A value still rose 23% from the previous quarter. The number of deals exceeding $100 million increased to 23 from 17 in Q1. Average M&A deal size climbed sharply from $26 million in Q1 to $116 million in Q2.

According to Grant Thornton Bharat, this divergence between deal count and value reflects the growing confidence of Indian firms pursuing global expansion, even as domestic and private equity activity remained comparatively measured.

Domestic Activity Slows, Inbound Recovers

Domestic transactions continued to dominate in terms of deal count, representing 64% of M&A volume. However, their aggregate value remained largely unchanged at $2.86 billion. Domestic deal numbers fell to 154 from 194 in the prior quarter.

Inbound M&A activity showed signs of improvement from a subdued base. The number of inbound deals rose to 27 from 22, and their value increased to $1.59 billion from $334 million.

Outbound transactions, however, stood out dramatically. While the number of such deals rose only slightly—from 56 to 59—their value surged to $23.44 billion, underscoring the strategic global push by Indian companies.

Private Equity Turns Cautious

In contrast to the M&A boom, private equity activity softened during the quarter. PE deals declined to 325 transactions worth $8.4 billion. Volumes dropped 22% compared to Q1, while deal value fell 8%.

The quarter marked the lowest PE deal volume since Q1 2025, and overall value declined for the third consecutive quarter.

Despite the slowdown, average deal size increased to $25.8 million from $21.8 million, indicating a preference for fewer but larger investments.

The five largest PE transactions contributed 43% of the total PE value. Two billion-dollar deals together accounted for $2.6 billion, while 12 additional transactions above $100 million added another $2.7 billion.

The biggest PE deal was a $1.64 billion investment in Royal Multisport, owner of the Rajasthan Royals IPL franchise, backed by investors including Lakshmi Mittal and Adar Poonawalla. The report suggests the transaction reflects rising valuations for IPL franchises.

The second-largest deal was a $1 billion investment in Nxtra Data by Bharti Airtel, Alpha Wave Global, Carlyle, and Anchorage Capital. Other notable investments included funding for Aditya Birla Capital, a real estate transaction involving Radial IT Park and International Tech Park Chennai, and a $280 million infusion into KreditBee.

June proved particularly subdued for private equity, recording 102 deals worth $1.3 billion—the lowest monthly activity of 2026. This compared sharply with February’s 169 transactions valued at $2.8 billion.

New Unicorns Amid Funding Slowdown

Despite softer overall funding activity, four companies entered India’s unicorn club during the quarter:

• Skyroot Aerospace

• Square Yards Consulting

• Sarvam AI

• KreditBee

The emergence of new billion-dollar startups signals that investors remain willing to support scalable, technology-driven businesses with strong growth potential, even in a more selective funding environment.

IPOs Slow, QIPs Rise

Public market activity presented a mixed picture. Initial public offerings slowed to 11 listings that collectively raised $1.1 billion. In contrast, qualified institutional placements (QIPs) gained momentum, with 16 issues raising $2.3 billion.

This suggests that listed companies increasingly relied on secondary fundraising mechanisms rather than new IPOs during the quarter.

A Quarter of Contrasts

Q2 2026 highlighted a clear trend: fewer deals, but significantly larger bets. Strategic outbound acquisitions propelled overall deal value to multi-year highs, even as private equity investors adopted a more cautious stance.

For India Inc, the quarter signalled growing global ambition. While domestic deal activity moderated, Indian corporates demonstrated increasing confidence in pursuing transformative cross-border acquisitions—reshaping the narrative of India’s dealmaking landscape.