India's mergers and acquisitions (M&A) deal value surged 31 per cent year-on-year to $86.9 billion in the first half of 2026, even as deal volumes slipped 8 per cent, according to a report by the London Stock Exchange Group (LSEG). The data points to a clear shift in India's dealmaking landscape — fewer transactions, but significantly larger ones.

Q2 2026 Drives the Momentum

The bulk of activity was concentrated in Q2 2026 (April–June), which recorded $66.9 billion in deal value — more than triple the prior quarter and the highest quarterly total since Q2 2022. The surge was driven by a cluster of large restructurings, cross-border acquisitions, and domestic consolidation plays. This is a notable pattern: India's deal market is increasingly being shaped by a small number of high-value transactions rather than broad-based volume.

Sectors in Focus

Healthcare, industrials, and financials recorded solid M&A activity during the period. High technology remained active by volume but eased in overall value. According to the LSEG report, dealmaking strategy continues to centre on scale, portfolio realignment, and selective outbound expansion into developed markets — a shift from the opportunistic, domestic-first approach that characterised earlier cycles.

Target India M&A and Inbound Deals

Target India M&A activity — deals where an Indian company was the acquisition target — totalled $68.0 billion, up 12.2 per cent from the same period last year. Domestic M&A grew 8.7 per cent year-on-year to $54.2 billion. Notably, inbound M&A reached $13.8 billion, marking a 28.8 per cent increase from a year ago and the highest first-half total since 2024, signalling renewed foreign appetite for Indian assets.

ECM Activity Hits Three-Year Low

In contrast to the M&A surge, equity capital markets activity told a more cautious story. 'Equity capital markets (ECM) activity in India eased to a three-year low during H1 2026, with total ECM proceeds dropping 38 per cent from a year ago to $16.5 billion, alongside a 19 per cent drop in number of issues, reflecting a slower pace of capital raising amid more selective market conditions,' said Elaine Tan, Senior Manager, Deals Intelligence at LSEG. Despite the softer proceeds, IPO volumes remained elevated with over 100 listings in H1 2026, and Tan noted that marquee IPOs coming to market in H2 could set the stage for a stronger second half.

Investment Banking Fees Under Pressure

India's investment banking activities generated an estimated $614.1 million in fees during H1 2026, down 20 per cent year-on-year. ECM underwriting fees fell 34 per cent to $188.6 million, reflecting the subdued capital-raising environment. However, completed M&A advisory fees bucked the trend, growing 24 per cent year-on-year to $265.0 million — a direct beneficiary of the high-value deal surge. As large-ticket transactions continue to define the market, M&A advisory is emerging as the bright spot in an otherwise compressed fee pool.