Q3 Dealtracker 2026

M&A activity became more volume-led in Q3 2026, recording 255 transactions worth USD 13.2 billion. Deal volumes increased by 7% quarter-on-quarter, while values declined by 53% from the elevated Q2 base of USD 27.9 billion. The decline largely reflects the absence of a mega transaction comparable to Sun Pharma's USD 11.8 billion acquisition of Organon & Co. Excluding this deal, Q3 values were 18% lower than the previous quarter. Year-on-year, volumes remained broadly stable, while values declined by 40%.

The increase in M&A volumes during Q3 2026 was driven primarily by domestic transactions and consumer-oriented sectors, indicating broader participation across the market. Domestic deal volumes increased 23% quarter-on-quarter to 188 transactions, contributing nearly three-fourths of overall activity. Meanwhile, retail & consumer, automotive, education, hospitality & leisure and media & entertainment collectively recorded 63 transactions, increasing their share of total M&A volumes from 16% to 25%.

Private equity activity strengthened in Q3 2026, with deal values reaching a year-high of USD 9.9 billion across 353 transactions, marking a strong rebound following slower activity in Q2. Deal volumes increased by 9% quarter-on-quarter, while values rose by 18%, indicating a greater concentration of capital in larger transactions.

The increase in PE deal values was driven by a higher number of large-ticket transactions. Q3 recorded two billion-dollar deals and 17 additional high-value transactions (> USD 100 million), which collectively accounted for USD 6.4 billion, compared with two billion-dollar and 12 additional high-value transactions worth USD 5.3 billion in Q2. This increase in both the number and value of large transactions contributed significantly to the growth in overall PE investment activity.

Sector activity reflected increasing diversification. Retail & consumer remained the most active sector by volume, followed by pharma, healthcare & biotech and IT & ITeS. By value, energy & natural resources and banking & financial services emerged as the leading sectors, followed closely by infrastructure management and pharma, healthcare & biotech.