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India’s transaction ecosystem demonstrated renewed momentum in Q3 2025, reflecting strategic recalibration across mergers, acquisitions, private equity, and capital markets. The quarter recorded heightened activity across domestic and cross-border engagements, with notable traction in manufacturing, automotive, and pharma sectors. Mid-market and growth-oriented investments continued to anchor deal flow, supported by calibrated capital deployment and sectoral diversification.
Grant Thornton Bharat's Q3 Dealtracker 2025 edition presents a comprehensive overview of deal activity, highlighting sectoral performance, funding trends, and transaction structures that shaped the quarter. The publication outlines developments across M&A, PE, IPOs, and QIPs, offering timely insights for stakeholders evaluating opportunities in India’s dynamic deal ecosystem.
This quarter recorded a notable surge in deal activity, with volumes reaching their highest level since Q1 2022 and quarterly values hitting a year-to-date peak, primarily driven by robust M&A performance. On a year-on-year basis, deal values rose by 28%, while volumes increased by 8%. IPO issuances hit an all-time quarterly high of 33, while QIP activity also recorded its highest quarterly volume of the year with 25 transactions.
M&A activity strengthened significantly, as deal volumes climbed 34% quarter-on-quarter to 263 transactions and values surged to USD 22 billion. The rise was fueled by six billion-dollar deals worth USD 15.3 billion, which accounted for 70% of overall M&A value– highlighting a strong appetite for strategic acquisitions. Cross-border deals dominated by value, led by outbound activity that doubled in volume and increased 14.5 times in value over the previous quarter.
Private equity activity remained largely stable, with 366 deals worth USD 6.7 billion. Volumes increased slightly by 3% quarter-on-quarter, but values declined by 10%, continuing the downward trend. Q3 2025 witnessed only 20 high-value deals (=>USD 100 million) totalling 3.7, and the average deal size stood at USD 18 million, reflecting the dominance of small-ticket deals.
Retail & consumer, IT & ITeS and pharma led by volumes, contributing a 43% share in the overall volumes, while Manufacturing, Automotive and Pharma sectors contributed nearly 56% of the deal values. Notably, the quarter saw three domestic IBC cases, two in the infrastructure management sector and one from hospitality and leisure, reflecting selective stress-driven consolidation in these sectors.
