India's February Deal Volume Surges 34% with $5.4 Billion in Transactions

Synopsis

In February, India's deal activity saw remarkable growth with 278 transactions valued at $5.4 billion, marking a 34% increase. This surge reflects renewed investor confidence and significant participation from private equity and venture capital.

Key Takeaways

34% increase in deal volume in February $5.4 billion total transaction value 169 private equity and venture capital deals worth $2.8 billion 104 mergers and acquisitions totaling $2 billion Energy and natural resources sector saw a 217% volume increase

New Delhi, March 10 (NationPress) India's deal-making landscape showed robust growth in February, with a total of 278 transactions valued at $5.4 billion—a significant 34 percent increase compared to the previous month, according to a recent report.

The analysis by Grant Thornton Bharat highlighted that this growth was primarily fueled by private equity and venture capital investments, which accounted for 169 deals worth $2.8 billion, marking the highest monthly deal activity in four years.

"Despite a modest recovery in overall deal values, the increase in transaction volumes indicates a rejuvenated investor confidence and broader capital allocation across various sectors," the report noted.

"Mergers and acquisitions also saw a resurgence, with 104 transactions totaling $2 billion. Domestic M&A was particularly strong, characterized by strategic and scale-driven consolidation across key sectors," stated Shanthi Vijetha, Partner at Grant Thornton Bharat.

Domestic consolidation was prominent, making up 69 percent of transaction volumes and 78 percent of total M&A value.

However, rising geopolitical tensions in the Middle East and a depreciating rupee pose additional risks to capital flows and cross-border sentiment. “In spite of these uncertainties, robust domestic liquidity, stable corporate balance sheets, and an increasing global investor interest in India are expected to sustain deal activity into 2026,” Vijetha added.

PE/VC activities drove the momentum, although the average deal size shrank to $16.6 million from $21.6 million in January, indicating a trend towards smaller investments.

IPO and QIP activities showed a slowdown, with three IPOs raising $436 million and two QIPs securing $139 million, reflecting a cautious approach to capital formation.

The energy and natural resources sectors excelled, with volumes soaring by 217 percent and values tripling month-over-month.

In the retail and consumer sector, the highest volume was recorded with 63 deals (accounting for 23 percent share), although values fell by 38 percent, primarily due to declines in textiles, FMCG, and personal care.

Other sectors like infrastructure, aerospace and defense, and professional services gained momentum, while the real estate sector faced a sharp decline due to the lack of large-scale transactions. The report also noted mixed trends in other sectors, with stable transaction volumes but decreased values.

aar/na

Point of View

It's clear that India's financial landscape is demonstrating resilience in the face of challenges. The significant rise in deal volumes is a positive indicator of investor confidence. However, we must remain vigilant regarding external geopolitical factors that could influence future transactions.

NationPress

21 Jun 2026

Frequently Asked Questions

What was the total deal volume in India for February?

India recorded a total of 278 transactions worth $5.4 billion in February.

Which sectors showed the most growth in deals?

The energy and natural resources sectors exhibited remarkable growth, with volumes increasing by 217%.

What is the trend in private equity and venture capital activity?

Private equity and venture capital saw a significant rise, with 169 deals worth $2.8 billion.

How did mergers and acquisitions perform?

Mergers and acquisitions regained momentum with 104 deals totaling $2 billion.

What challenges are facing India's deal activity?