The consumer and retail sector witnessed sustained investment interest as businesses strengthened category leadership, expanded portfolios and pursued differentiated growth opportunities. The Q2 2026 edition of the Consumer and Retail Dealtracker analyses key themes shaping deal activity, investment priorities and sector trends. It covers strategic acquisitions, private equity and venture capital activity, cross-border transactions and emerging areas of consumer growth.

Key insights from the Consumer and Retail Dealtracker Q2 2026

Q2 2026 witnessed moderated deal activity, with volumes declining 34% and values decreasing 33% q-o-q with 97 deals valuing USD 981 million, as investors remained selective. Despite the slowdown, strategic acquisitions and growth stage investments continued across high-conviction consumer themes.

M&A activity softened during the quarter, with deal volumes and values falling nearly 50% q-o-q with 20 deals valuing USD 184 million, reflecting a slowdown in strategic acquisitions and portfolio consolidation activity. While domestic and outbound activity softened, inbound M&A strengthened, with deal volumes doubling to four and values rising nearly fivefold.

PE/VC investments remained resilient despite lower activity levels with 75 deals valuing USD 734 million, with volumes declining 29% and values moderating 31% q-o-q, indicating a more measured funding environment while sustaining investor interest in consumer businesses.

Public market fundraising remained subdued. While IPO values increased 13% q-o-q, QIP activity resumed after no issuances in Q1 2026, though fundraising levels remained significantly below recent peaks.

We are seeing a structural shift in India's consumer sector, with capital increasingly flowing towards specialised, high-growth categories rather than traditional consumption themes. Businesses operating in wellness, premium personal care, nutrition and digital-first consumer brands are attracting disproportionate investor interest as changing consumer preferences create new growth opportunities. Companies are also using acquisitions more strategically to expand into adjacent categories and strengthen their portfolios. We expect these emerging consumer themes to continue shaping investment and deal activity in the sector.
Naveen Malpani Partner and Healthcare Industry Leader, Grant Thornton Bharat
Consumer and Retail Dealtracker: Q2 2026
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Consumer and Retail Dealtracker: Q2 2026

Providing M&A and PE deal insights