India's dealmaking activity surged to a four-year high in the second quarter of 2026, with the combined value of mergers and acquisitions (M&A) and private equity (PE) transactions jumping 127 per cent quarter-on-quarter to $36.3 billion, according to a report by Grant Thornton Bharat. The sharp rise was driven primarily by a wave of large-ticket outbound acquisitions, even as domestic deal volumes and PE activity remained measured.

M&A Leads the Charge

M&A activity emerged as the dominant force in Q2 2026, recording 240 transactions worth $27.9 billion. While deal volumes fell 12 per cent quarter-on-quarter, deal values surged 302 per cent, underpinned by five billion-dollar cross-border acquisitions. Outbound deals accounted for 84 per cent of total M&A value, reflecting growing appetite among Indian companies for global expansion. The standout transaction was an $11.8 billion overseas acquisition by an Indian pharmaceutical company — the largest outbound acquisition ever recorded by an Indian pharma firm.

Private Equity Activity Moderates

Private equity deal flow moderated during the quarter, with 325 deals worth $8.4 billion — down 22 per cent in volume and 8 per cent in value compared to Q1 2026. Despite the slowdown in deal count, average deal sizes increased, signalling a shift toward fewer but larger investments. Investor confidence in high-growth businesses remained resilient, with four new unicorns emerging during the quarter. The largest PE transaction was the $1.6 billion acquisition of the Rajasthan Royals IPL franchise.

Public Markets: IPOs Subdued, QIPs Gain Pace

IPO activity remained subdued in Q2, with just 11 listings raising $1.1 billion. In contrast, qualified institutional placements (QIPs) gathered momentum, with 16 issuances collectively raising $2.3 billion — suggesting that established companies preferred the QIP route over fresh public listings amid uncertain market conditions.

Sector Breakdown

By deal volume, retail and consumer led with 95 transactions, followed by IT and IT-enabled services (80 deals) and banking and financial services (62 deals). In terms of value, pharma, healthcare, and biotechnology topped the charts at $13.7 billion — largely driven by the record outbound pharma acquisition. Manufacturing followed at $3.5 billion, while telecom and infrastructure management recorded $3 billion and $2.9 billion, respectively.

What Experts Said

Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat, said India's deal activity reflected a divergence — 'deal values rising sharply on the back of strategic outbound acquisitions even as domestic and private equity activity remained relatively measured amid global uncertainties.' The observation underlines a structural shift: Indian corporates are increasingly looking beyond domestic markets for scale, even as foreign investors remain selectively cautious.

What This Signals

This is the strongest quarterly deal value reading in four years, and the composition tells a nuanced story. The concentration of value in a handful of mega outbound deals — particularly in pharma — means the headline figure may not reflect broad-based dealmaking health. With PE volumes declining and IPO activity subdued, the quarter's record is largely the story of a few bold bets by Indian multinationals rather than a broad market upswing. How the second half of 2026 performs will depend on whether global macro uncertainties ease enough to revive domestic and PE deal flow.