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India’s dealmaking environment continued to demonstrate resilience in May 2026, supported by sustained activity across mergers and acquisitions, private equity, and public markets.
While transaction volumes moderated from the previous month’s elevated levels, underlying momentum remained intact as investors continued to pursue strategic opportunities and high-value investments. Cross-border transactions played a significant role in driving value creation, while domestic activity continued to support overall deal flow. The trends observed during the month reinforce confidence in India’s long-term investment outlook and highlight the market’s ability to sustain deal activity amid changing transaction dynamics.
M&A activity recorded 76 transactions worth USD 6.3 billion in May 2026, reflecting a decline of 26% in volumes and 66% in values compared to April. Despite the moderation, deal values remained the second-highest recorded this year, supported by a continued presence of large-ticket transactions. Fewer large deals in May vs April’s mega-deals, lead to low average ticket size.
Moderation reflects a shift towards few, high value transactions, with one multi-billion-dollar transaction worth USD 3 billion and 11 high-value deals exceeding USD 100 million collectively contributing USD 2.7 billion. In comparison, April 2026 had witnessed four billion-dollar deals aggregating USD 16.4 billion, highlighting a normalisation in large-ticket deal activity following an exceptionally strong previous month.
PE activity recorded 114 deals aggregating USD 3.9 billion, representing the second-lowest monthly volumes for the year, despite a marginal 5% uptick compared to the preceding month. While deal volumes remained constrained, aggregate values surged to their highest monthly level in the year, led by a marquee USD 1.6 billion investment in Rajasthan Royals involving a change in ownership.
Retail & consumer and Banking & financial services led in terms of deal volumes, followed by Manufacturing and IT & ITES, while Telecom and Media & entertainment together accounted for 47% of total deal value, reflecting a divergence between volume-driven and value-driven sectors.
In Q2 2026, pharma and healthcare deal activity reflected a selective investment environment. Strategic acquisitions, portfolio strengthening and capability-led expansion remained key themes across the sector.
India's real estate industry recorded stronger transaction activity during the quarter. Domestic activity, capital market fundraising and investor interest in income-generating assets continued to support market activity.
The consumer and retail sector witnessed sustained investment interest as businesses strengthened category leadership, expanded portfolios and pursued differentiated growth opportunities.
