Cross-border M&A reaches four-year high as Indian companies pursue strategic overseas assets; private equity investments become more selective amid global uncertainty

Indian companies significantly stepped up their global expansion strategy during the second quarter of 2026, driving the total value of mergers and acquisitions (M&A) and private equity (PE) transactions to $36.3 billion, more than double the previous quarter. According to the latest Grant Thornton Bharat Dealtracker Q2 2026, the sharp rise in deal value was powered by a handful of large overseas acquisitions, despite an overall decline in transaction volumes.

The report paints a picture of a maturing corporate landscape where Indian companies are increasingly prioritising strategic, high-value acquisitions over numerous smaller deals. While the number of transactions fell by 18% quarter-on-quarter to 565, the substantial increase in average deal size reflects growing confidence among Indian corporates in expanding their global footprint.

Mega Overseas Deals Propel M&A Activity

The April–June quarter witnessed one of the strongest periods for India's merger and acquisition market in recent years.

Total M&A value reached $27.9 billion, marking the highest quarterly level since the landmark HDFC-HDFC Bank merger announced in 2022.

Although the number of M&A transactions declined by 12% to 240 deals, the value of transactions surged by an impressive 302% compared to the previous quarter.

The growth was primarily driven by five billion-dollar cross-border acquisitions, highlighting the increasing appetite of Indian corporations for international expansion.

Industry experts believe the trend demonstrates that Indian companies are now competing more aggressively on the global stage by acquiring strategic assets, technology, brands, and market access rather than relying solely on domestic growth.

Outbound Acquisitions Dominate the Quarter

One of the most striking findings of the report was the dominance of outbound mergers and acquisitions.

Cross-border acquisitions accounted for 84% of the total M&A value, with outbound transaction values rising from $3.87 billion in the previous quarter to $23.44 billion.

Interestingly, the number of outbound transactions increased only marginally—from 56 deals to 59 deals—showing that companies executed fewer but significantly larger acquisitions.

This trend reflects increasing confidence among Indian corporates to pursue transformational deals overseas despite geopolitical and economic uncertainties.

Sun Pharma Leads the Biggest Acquisition of the Quarter

The largest transaction during the quarter came from the pharmaceutical sector.

Sun Pharmaceutical Industries announced an $11.75 billion acquisition of Organon & Co., making it the biggest Indian overseas acquisition during the quarter.

Other notable billion-dollar transactions included:

• Bharti Airtel's $2.97 billion acquisition involving a 16% stake in Airtel Africa.

• EPL's $2 billion transaction involving Indovida India.

• VINCI Highways' $1.6 billion acquisition of nine toll road concessions.

• GMR Group's $1.05 billion transaction involving GMR Airports Holding.

Collectively, these five deals contributed nearly 69% of the quarter's total M&A value, illustrating how a handful of strategic acquisitions transformed India's deal landscape.

Larger Deal Sizes Reflect Strategic Investment Focus

Beyond the headline transactions, the report indicates that companies are increasingly focusing on high-value strategic investments.

The average M&A deal size increased sharply from approximately $26 million in the first quarter to nearly $116 million during the second quarter.

The number of transactions valued above $100 million also rose from 17 to 23, suggesting that corporate India remains willing to deploy significant capital for long-term growth opportunities.

Even after excluding the five mega deals, total M&A value still increased by around 23%, indicating broad-based strength in the acquisition market.

Domestic M&A Activity Remains Resilient

While overseas acquisitions dominated headlines, domestic mergers continued to account for the majority of transactions by volume.

Domestic deals represented around 64% of all M&A transactions, although activity moderated during the quarter.

Key highlights include:

• Domestic deal count declined from 194 to 154

• Domestic deal value remained broadly stable at $2.86 billion

This suggests that while companies continue to pursue consolidation opportunities within India, the focus has increasingly shifted toward international growth opportunities.

Inbound Investments Show Signs of Recovery

The report also points to improving foreign investor interest in Indian companies.

Inbound mergers and acquisitions increased from 22 transactions in the previous quarter to 27 transactions during Q2.

Deal value also improved significantly, rising from $334 million to approximately $1.59 billion.

Although inbound activity remains relatively modest compared to outbound acquisitions, the increase reflects sustained confidence in India's long-term economic growth prospects and business environment.

Private Equity Investors Turn More Selective

Unlike the strong M&A market, private equity activity experienced a relatively cautious quarter.

According to the report:

• 325 PE transactions were completed.

• Total investment value stood at $8.4 billion.

• Deal volumes declined 22% quarter-on-quarter.

• Investment value fell 8%.

This marks the third consecutive quarterly decline in PE investment value, indicating that financial investors are becoming increasingly selective amid global macroeconomic uncertainty and elevated valuations.

However, average deal size increased from $21.8 million to $25.8 million, suggesting investors continue to back high-quality businesses with strong growth potential.

Major Private Equity Deals Continue to Attract Capital

Despite the slowdown, several large investments underscored investor confidence in India's growth sectors.

The quarter's largest PE transaction was a $1.64 billion investment in Royal Multisport, the owner of the Rajasthan Royals IPL franchise, by investors including Lakshmi Mittal and Adar Poonawalla.

Other major investments included:

• $1 billion investment in Nxtra Data

• Investment in Aditya Birla Capital

• Real estate investment involving Radial IT Park and International Tech Park Chennai

• $280 million investment in KreditBee

The top five PE transactions together accounted for approximately 43% of the total private equity investment value.

Four Startups Join India's Unicorn Club

Even as venture funding moderated, India's startup ecosystem continued to produce billion-dollar companies.

During the quarter, four startups achieved unicorn status:

• Skyroot Aerospace

• Square Yards

• Sarvam AI

• KreditBee

The emergence of new unicorns demonstrates that investors remain willing to support businesses with scalable technology, disruptive business models, and strong long-term growth prospects despite a more disciplined funding environment.

Capital Markets Witness Changing Fundraising Trends

The report also highlights a shift in corporate fundraising preferences.

Initial Public Offering (IPO) activity moderated during the quarter.

IPO Market

• 11 IPOs

• $1.1 billion raised

Qualified Institutional Placements (QIPs)

• 16 QIP issues

• $2.3 billion raised

The stronger QIP activity suggests listed companies increasingly preferred raising capital from institutional investors rather than entering the primary market amid evolving market conditions.

Key Themes Emerging from Q2 Deal Activity

Several important trends emerged during the quarter:

• Indian corporates are becoming increasingly global in their acquisition strategies.

• Large strategic cross-border deals are driving overall transaction values.

• Companies are prioritising quality over quantity in investment decisions.

• Private equity investors remain disciplined but continue to support high-growth businesses.

• Domestic consolidation remains healthy despite greater focus on overseas opportunities.

• Capital raising is increasingly shifting towards secondary fundraising mechanisms such as QIPs.

These developments indicate a more mature and globally integrated corporate ecosystem.

Outlook: India's Global Expansion Story Continues

India's deal-making environment is expected to remain active as corporate balance sheets strengthen, financing conditions improve, and companies continue seeking international growth opportunities. Sectors such as pharmaceuticals, telecommunications, infrastructure, technology, renewable energy, financial services, digital infrastructure, and manufacturing are likely to remain at the forefront of merger and acquisition activity.

While global macroeconomic uncertainties and geopolitical risks may continue to influence investment decisions, Indian companies appear increasingly confident in pursuing transformational overseas acquisitions that enhance scale, technological capabilities, and market access. With outbound M&A gaining momentum and strategic investments continuing across multiple sectors, India's corporate sector is steadily establishing itself as a significant player in the global mergers and acquisitions landscape.