India’s merger and acquisition deal values reached $36.3 billion in the second quarter of 2026, marking a 127% increase despite an 18% decline in total transaction volume. This surge was primarily driven by large-scale outbound acquisitions, with the pharmaceutical sector leading in total investment value.
India’s corporate dealmaking activity witnessed a significant shift in the second quarter of 2026, characterized by fewer transactions but much larger deal sizes. Total deal values for mergers and acquisitions (M&A) and private equity combined rose to $36.3 billion, a 127% increase compared to the previous quarter. This growth occurred even as the overall volume of deals fell by 18%, suggesting that companies are increasingly focusing on strategic, high-value cross-border expansion rather than a higher frequency of smaller deals.
M&A Surge Led by Global Acquisitions
Mergers and acquisitions were the primary driver of this financial growth, recording $27.9 billion in total value across 240 transactions. This quarterly M&A value is the highest seen since the second quarter of 2022. The increase was heavily concentrated in five major outbound deals, which together contributed 84% of the total M&A value for the period. Sun Pharmaceutical Industries led this trend with its $11.75 billion acquisition of Organon & Co, marking a major expansion for the Indian pharmaceutical sector. Other notable transactions included Bharti Airtel’s $2.97 billion investment to increase its stake in Airtel Africa, as well as significant deals involving EPL Ltd, VINCI Highways, and GMR Group.
Private Equity Trends and Sector Performance
While M&A activity surged, private equity investment showed a different pattern, with values dropping 8% to $8.4 billion across 325 deals. Despite the decline in total value, the average deal size increased to $25.8 million, up from $21.8 million in the prior quarter. This shift indicates that private equity investors are also opting for fewer, more substantial investments. The quarter also saw the emergence of four new unicorns, including companies like Skyroot Aerospace and KreditBee, showing continued interest in high-growth startups.
From a sectoral perspective, the pharmaceutical, healthcare, and biotech industries dominated in terms of value, attracting $13.7 billion. Retail and consumer businesses led in the total number of transactions, with 95 deals recorded during the period. Other active sectors included IT and IT-enabled services, banking and financial services, and infrastructure management.
For investors, the key takeaway is the shift toward larger capital allocation for international growth. Moving forward, the financial impact of these major outbound acquisitions will be a central focus. Investors may track how these companies manage the debt or cash flow requirements associated with such large-scale purchases, as well as their ability to integrate these international operations into their existing businesses to drive future profit growth.