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India’s consumer and retail sector enters 2026 with improving deal momentum, even as capital deployment remains selective and disciplined. The Q1 2026 edition of the Consumer and Retail Dealtracker analyses this shift towards profitability led growth, premiumisation, and brand led strategies. Investors and strategic players prioritise segments demonstrating resilience and pricing power, while companies strengthen portfolios and focus on high margin opportunities. Strategic consolidation and targeted investments continue to shape a more balanced and sustainable growth trajectory across the sector.
Q1 2026 saw a recovery in deal volumes, supported by domestic consolidation and increased outbound activity. However, overall deal values remained subdued, reflecting a continued tilt towards smaller, strategic transactions over large-scale bets.
M&A activity strengthened in volume terms, driven primarily by domestic transactions, with a pickup in cross-border deal count. However, average deal sizes contracted, signaling a continued focus on consolidation-led and selective acquisitions rather than scale-driven investments.
PE/VC activity remained resilient, with steady deal flow and sustained investor interest in scalable, profitability-led businesses, despite a more measured and disciplined funding environment.
Public market activity remained subdued, with limited issuance as companies deferred fundraising amid valuation volatility and cautious market sentiment, increasingly turning to alternative funding avenues.
Personal care and textiles, apparel & accessories led activity in volume terms, together accounting for 39% of total deals. In contrast, FMCG and food processing dominated in value, contributing nearly half of overall deal value—driven by strong investor interest in premium, health-focused, and brand-led consumption themes, reinforcing the shift towards high-growth, differentiated segments.
The Q3 2025 edition of Grant Thornton Bharat’s Financial Services Dealtracker analyses key deal trends across M&A, PE, IPOs, and QIPs. It explores investor sentiment, fintech-led innovation, and regulatory signals influencing capital flows in banking, NBFCs, insurance, and asset management.
The report outlines how businesses are aligning with investor expectations through integrated models, sustainable practices, and digital scalability.
India’s consumer and retail sector is experiencing a renewed period of strategic investments, marked by active participation across food and beverage, personal care and e-commerce segments.
