For more updates follow Grant Thornton Bharat on WhatsApp
India’s deal environment in Q2 2025 reflected a measured approach to capital deployment, shaped by sectoral realignments and selective investor participation. Activity across mergers and acquisitions (M&A) and private equity (PE) remained consistent with broader market expectations, with banking and financial services, infrastructure, and manufacturing contributing significantly to overall values. Early-stage investments continued to drive volumes in consumer and retail, while strategic consolidation was evident in pharma and automotive.
The Q2 2025 edition of Dealtracker provides structured insights into transaction trends, sectoral performance, and funding patterns across M&A, PE, IPOs, and QIPs. It highlights calibrated movements in deal volumes and values, informed by macroeconomic factors and policy developments. This release also outlines the directional shift in investor focus towards stability-oriented sectors and smaller ticket sizes, supported by strong fundamentals. With granular analysis and sector-wise breakdowns, Dealtracker serves as a reference point for stakeholders seeking clarity on India’s deal activity during the second quarter of the year.
The quarter saw a notable slowdown, marked by a decline in average deal sizes from USD 43.7 billion to USD 29.1 billion. This downturn was largely driven by a significant 81% drop in domestic M&A values compared to the previous quarter coupled with absence of high-values deals across segments. Despite a 23% increase in deal volumes compared to the same period last year, overall deal values decreased by 20%.
M&A activity declined this quarter, with domestic deals reaching their lowest value in five quarters, although it remains the dominant force driving M&A activity. The banking sector led the M&A landscape, driving deal value with three significant transactions (> USD 100 million) that accounted for 45% of the total value.
PE deal volumes reached the second-highest level since Q4 2022. However, deal values declined, with 18 high-value transactions (> USD 100 million) worth USD 4.6 billion this quarter, down from 21 high-value deals valued at USD 6.1 billion in Q1 2025.
IPO activity declined for the third consecutive quarter, with both volume and value dropping 25% and 26%, respectively over previous quarter. However, June saw a rebound, with the second-highest monthly IPO volumes and values in 2025.
