India's deal market recorded 196 transactions worth $11 billion in May 2026, according to a report released on Monday, 8 June, marking a moderation from an exceptionally strong April but underscoring sustained dealmaking momentum across the country. Excluding public market activity, 190 M&A and private equity deals worth $10.2 billion were logged — a 10 per cent ease in volumes and a 53 per cent ease in values compared to the previous month.

Large-Ticket Deals Drive Monthly Totals

Despite the overall pullback, two billion-dollar transactions — one each in M&A and private equity — together contributed $4.6 billion, accounting for nearly 42 per cent of total deal value in May. This concentration at the top end signals that strategic intent among large corporates remains robust even as mid-market activity softened.

Shanthi Vijetha, Partner, Deals Lifecycle, Grant Thornton Bharat, said deal activity in May was 'similar to April volume and values, indicating sustained momentum and resilience in the deal market in the backdrop of continued global uncertainty.' She added that average deal values have seen 'an uptick as there is an increased strategic intent in M&A among domestic large corporates (14 deals above $50 million), alongside a strong appetite for high-value fund raises from private equity (14 deals above $50 million).'

M&A Activity: Domestic Deals Anchor Volumes, Cross-Border Drives Value

M&A activity remained steady at 76 deals worth $6.3 billion. Domestic transactions accounted for 61 per cent of overall M&A volumes, reflecting continued strategic consolidation across sectors. Cross-border deals, while fewer in number, were the primary drivers of value creation during the month.

Manufacturing and pharma emerged as joint leaders in M&A volumes, each recording 14 deals. This comes amid a broader trend of domestic conglomerates pursuing inorganic growth to shore up supply chains and expand product portfolios.

Private Equity Hits Highest Monthly Value of 2026

Private equity activity recorded 114 deals worth $3.9 billion — with aggregate deal values reaching their highest monthly level of the year. Retail and Consumer was the most active PE sector by volume, logging 30 deals worth $444 million, reflecting sustained investor appetite for consumer-facing businesses and growth-stage brands.

Banking and Financial Services continued to attract strong investor interest, ranking among the top sectors by both volume and value — a pattern consistent with the sector's positioning as a conduit for India's credit-growth story.

Public Markets Remain Cautious

Public market activity was subdued in May 2026, with only two IPOs raising $214 million, reflecting a cautious primary market environment. QIP activity was steadier, with four issuances collectively raising $568 million, indicating a continued preference among listed companies for institutional fundraising. Together, IPOs and QIPs contributed $782 million to overall transaction value during the month.

Outlook: Resilience Amid Global Headwinds

Vijetha noted that the deal market 'continues to show consistency in participation as capital remains focused on strategic relevance and high-value opportunities.' With global macro uncertainty persisting — from US rate trajectory to geopolitical supply-chain pressures — India's deal pipeline is being shaped less by opportunistic bets and more by long-term strategic positioning. The sustained high average deal size suggests that while smaller transactions are being deferred, boardroom conviction on transformative deals remains intact.