New Delhi [India], July 9 : India's deal-making landscape cooled in Q2 2025, with overall deal volumes and values taking a hit amid ongoing global instability, according to Grant Thornton Bharat's latest Dealtracker report.
India Inc recorded 582 transactions (including IPOs and QIPs) worth USD 17 billion, down 13 per cent in volume and a sharp 48 per cent in value from the previous quarter.
The decline was largely driven by geopolitical and macroeconomic headwinds, including the Iran-Israel conflict, US policy uncertainty, and the prolonged Russia-Ukraine war.
The report further reveals that domestic M&A saw significant deceleration, with only one billion-dollar deal, Sumitomo Mitsui's USD 1.57 billion investment in YES Bank, compared to four such deals in Q1.
Still, some sectors and segments showed signs of resilience. Private equity held relatively steady with 357 deals totalling USD 7.4 billion, supported by 18 high-value investments. Warburg Pincus and Abu Dhabi Investment Authority's USD 862 million infusion into IDFC FIRST Bank was the largest PE transaction of the quarter.
Public markets reflected cautious optimism. While IPO volumes dropped for the third consecutive quarter, June saw renewed interest with major listings like Leela Hotels (USD 407 million) and Ather Energy (USD 343 million). QIPs also held firm, raising USD 2.2 billion, with the banking sector contributing nearly half the total.
Sectoral trends revealed a shift in investor focus. Banking and financial services led in value with USD 4.5 billion across 73 deals. Infrastructure followed with USD 1.2 billion, buoyed by major investments in road and urban development.
Meanwhile, manufacturing achieved record volumes, driven by favourable policy momentum, despite a decline in deal value.
Shanthi Vijetha, Partner at Grant Thornton Bharat, noted, "Despite a challenging quarter, the steady pace in private equity, emergence of unicorns, and green shoots in public markets underscore investor confidence in India's long-term fundamentals."
With geopolitical pressures expected to ease and domestic growth drivers intact, the report projects a rebound in deal activity in the second half of 2025. Investors are likely to remain focused on scalable, tech-enabled, and consumer-centric businesses as they navigate global uncertainties.
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