New Delhi, April 20 (NationPress) In the initial quarter of 2026, the Indian retail sector recorded 146 transactions valued at $1.5 billion, including one public market deal, signaling a resurgence in deal volumes despite a significant drop in overall values, as reported on Monday.

In terms of volume, transactions jumped 21 percent from 120 to 146, while the total value saw a decline of approximately 55 percent, dropping from $3.4 billion to $1.5 billion. This trend reflects a move towards smaller deals due to the absence of high-value transactions, according to an analysis by Grant Thornton Bharat.

During the quarter, increased outbound activity contributed to this momentum, although investors remained focused on disciplined deal-making, the report noted.

The analysis further revealed that the top five Mergers and Acquisitions (M&A) and Private Equity (PE) deals constituted 57 percent of the total deal value.

By category, the personal care and food processing sectors continued to draw significant interest, driven by shifting consumer preferences towards health, convenience, and premium products, alongside ongoing portfolio refinement by both national and international players.

On the M&A front, activity increased in volume with 40 deals worth $358 million, reflecting an 18 percent rise from 34 deals in Q4 2025, although total values declined by 33 percent from $532 million.

Domestic consolidation remained a pivotal factor, with food processing, personal care, and FMCG leading M&A volumes at 13, 10, and 8 deals, respectively.

In terms of value, personal care topped the list with $155 million, highlighting investor interest in premium and health-oriented categories.

Additionally, the PE segment showed resilience with 105 deals totaling $1.1 billion, a 22 percent increase in volume.

FMCG led PE investments in value at $347 million, followed by food processing with 8 deals worth $257 million.

The analysis noted that the quarter experienced a steady deal flow, with investors leaning towards mid-sized, growth-stage investments and smaller deal sizes.

E-commerce and emerging consumer brands continued to secure funding, particularly in digital-first and health-focused segments.

Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat, stated that the first quarter of 2026 marks a phase of measured recovery in India’s consumer and retail sector, as deal volumes bounce back while capital deployment remains selective.

“We are observing a clear shift towards profitability-led growth, premiumization, and brand-focused strategies, with investors concentrating on resilient segments that possess pricing power,” he added.

However, activity in discretionary segments remained selective, with textiles and apparel seeing stable volumes but reduced values, while retail technology and consumer services remained subdued.

“Private Equity continued to drive overall activity, accounting for the majority of volumes and value, with ongoing interest in scalable, profitability-driven enterprises,” the report concluded.