Cross-border deals push India M&A value to $27.9 bn in Q2 2026

India's M&A market hit a four-year high in Q2 2026 at USD 27.9 billion, driven by large cross-border acquisitions, despite fewer deals. Outbound activity, led by Sun Pharma's USD 11.8B deal, accounted for 84% of the total M&A value.

Strategic cross-border acquisitions helped India's mergers and acquisitions (M&A) market register its highest quarterly value in four years during the April-June quarter of 2026, even as the overall number of deals declined, according to Grant Thornton Bharat's Q2 2026 Dealtracker report.

The report said Indian M&A activity reached 240 deals worth USD 27.9 billion in the second quarter, marking the highest quarterly M&A value since Q2 2022. Overall deal activity, including private equity transactions, stood at 565 deals worth USD 36.3 billion, with aggregate deal value rising 127 per cent over the previous quarter despite a decline in transaction volumes.

Cross-Border Deals Drive Record Values

According to the report, "Strategic cross-border acquisitions drive values to a four-year high amid declining volumes." Grant Thornton Bharat noted that outbound acquisitions emerged as the primary driver of the surge in deal values.

Outbound Acquisitions Dominate

It stated, "A key highlight of the quarter was the dominance of outbound activity. All five billion-dollar deals were cross-border, with outbound transactions accounting for 84% of total M&A value and a sixfold increase over the previous quarter." The largest transaction during the quarter was Sun Pharmaceutical Industries' USD 11.8 billion acquisition of Organon & Co., making it the biggest overseas acquisition by an Indian pharmaceutical company.

Domestic and Mid-Market Trends

The report added that while overall deal volumes moderated, larger transactions significantly lifted aggregate values. Domestic transactions continued to account for the majority of deal volumes at 64 per cent, although outbound transactions overwhelmingly contributed to deal value. Even after excluding the five billion-dollar deals, overall M&A values rose 23 per cent sequentially, indicating sustained momentum in mid-market transactions.

Private Equity Activity Softens

Private equity activity, however, softened during the quarter, with 325 deals worth USD 8.4 billion, reflecting a 22 per cent decline in deal volume and an 8 per cent decline in value compared with the January-March quarter. Despite the moderation, average deal sizes increased, signalling higher capital deployment in fewer transactions.

Sector-wise Performance

Sector-wise, pharma, healthcare and biotechnology led deal values, followed by manufacturing, telecom and infrastructure, while retail remained the most active sector by transaction volume.

The report concludes that India's deal landscape in the second quarter was characterised by fewer but significantly larger transactions, with outbound strategic acquisitions driving overall market value to its strongest quarterly performance in four years.

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