India clocks record quarterly deal volumes in Q1, up 5 pc sequentially: Report

New Delhi, April 13 India recorded its highest-ever quarterly deal volumes in Q1 2026 with 686 transactions reflecting a 5 per cent rise in volumes, a report said on Monday.

The total deal values eased to $16 billion, marking a 48 per cent drop in value as number of large deals moderated, with only two billion-dollar transactions worth $4.1 billion compared with seven such deals worth $15 billion in Q4 2025, the report from Grant Thornton Bharat said.

A pullback in public market fundraising was also notable, with IPO and QIP issuances easing 63 per cent in volume and 78 per cent in value, it noted.

“India’s dealmaking activity demonstrated continued resilience in Q1 2026, with transaction volumes witnessing growth for a fourth consecutive quarter, despite heightened global uncertainty," said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat.

Deal values moderated amid the absence of large-ticket transactions and subdued capital markets, but the underlying momentum—particularly in outbound M&A, private equity volumes, and the emergence of new unicorns—reflects sustained confidence in India’s long-term growth story, Shanthi Vijetha said.

"Supported by strong domestic fundamentals and an enabling policy environment, India remains a compelling destination for strategic and financial capital, even as investors navigate near-term global headwinds,” she added.

M&A activity remained steady in volumes though values moderated due to the absence of large strategic transactions. A total of 271 M&A deals worth $6.9 billion were recorded in the quarter. Domestic transactions continued to anchor activity with 193 deals worth $2.7 billion, while outbound dealmaking contributed 56 per cent of total M&A value.

PE activity remained active during the quarter, with investors continuing to deploy capital across many mid-sized transactions, the report said.

A total of 415 private equity deals worth $9.1 billion were recorded in Q1 2026, with volumes rising 9 per cent quarter on quarter and continuing the upward trajectory seen over the past year.

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