India Deal Activity Sees Measured Start to 2026; 207 Deals Worth $7.2 Billion in January: Grant Thornton Bharat

New Delhi, February 16: India’s deal activity began 2026 on a cautious note, recording 207 transactions worth $7.2 billion in January, even as private equity continued to show resilience, according to a report by Grant Thornton Bharat.

Deal Volumes and Values Moderate Month-on-Month​

The report described January as a measured start for India’s deal ecosystem, citing the absence of large-ticket mergers and acquisitions. Overall deal volumes declined 11 per cent month-on-month, while deal values saw a sharper 60 per cent correction compared to December.

Excluding public market activity, 199 deals were completed, aggregating $5.9 billion. On this basis, volumes fell 8 per cent and values declined 56 per cent sequentially, reflecting a slowdown in high-value transactions.

Private Equity Remains Resilient​

Despite softer overall deal activity, private equity remained active. The month saw 126 private equity deals valued at $2.7 billion, indicating sustained investor participation in growth and expansion capital.

However, the average private equity deal size declined to $21.6 million from $43.3 million in December. The shift signals continued preference for smaller-ticket investments focused on growth-stage and expansion opportunities.

Capital Markets Stay Selectively Open​

Capital markets activity, though cautious, continued to provide funding avenues. Three initial public offerings raised $0.5 billion during the month, while five qualified institutional placements mobilised $0.8 billion. The activity points to selective but ongoing capital deployment in public markets.

Sectoral Trends: IT Leads by Value, Retail Tops by Volume​

Sector-wise, Information Technology and IT-enabled Services emerged as the leader in deal value terms, with 19 transactions totalling $2.4 billion.

Retail and Consumer remained the most active sector by deal volume, clocking 39 transactions. Within this space, FMCG and food processing continued to attract investor interest.

Banking and Financial Services recorded 17 deals valued at $466 million. The report attributed the correction in values to a high base effect from December. Fintech activity, however, remained resilient despite the broader moderation in the sector.

Outlook: Policy and Trade Developments in Focus​

According to the report, dealmaking sentiment in early 2026 is likely to be influenced by policy continuity, infrastructure-led growth, and capital formation priorities. Expectations around the Union Budget 2026 and developments in the India–EU trade agreement are also expected to shape market activity in the coming months.

While aggregate deal values moderated, the steady pace of private equity transactions and selective capital market access indicate that investor interest in India’s growth story remains intact at the start of the year.