India M&A volumes fall 20%, but deal value holds steady as companies make bigger bets

New Delhi [India], September 22 (ANI): India’s merger and acquisition (M&A) volumes fell by around 20 per cent year-on-year in the first seven months of 2026, but overall deal value remained steady as companies focused on larger transactions, according to a report by Boston Consulting Group (BCG).
The fall in deal volumes in India was slightly steeper than the roughly 18 per cent decline seen globally, BCG said in its report titled India M&A 2026: Fewer Deals, Bigger Bets.
“Volumes have fallen while the market is rewarding those that still transact with conviction. This suggests boardrooms should keep their M&A engines always on and reconsider how and when they choose to tap these markets, rather than pausing until sentiment turns,” Kanchan Samtani, APAC Leader, Corporate Finance & Strategy, MD and Senior Partner, BCG, said.
Large transactions remained relatively resilient despite the overall decline. The number of deals valued above USD 100 million stood at 45 in the first seven months of 2026, compared with 51 in 2025 and 37 in 2024.
Deals above USD 500 million accounted for close to 59 per cent of total transaction value, while deals worth more than USD 1 billion accounted for a roughly 14-15 percentage-point higher share of total deal value than in 2025, where deal values were disclosed.
The contraction was concentrated mainly in smaller transactions, with deals valued below USD 1 million accounting for nearly half of the overall decline in deal volumes, the report said.
Outbound acquisitions also emerged as a key trend, with Indian companies increasingly buying assets overseas. Outbound deal value rose by nearly USD 3.8 billion, while domestic deal value declined by USD 1.6 billion and inbound deal value fell by USD 3.7 billion.
“The Indian outbound story isn’t just the large conglomerates anymore – we are seeing mid-sized companies buy capabilities and market access abroad, and that is a healthy sign on confidence,” Dhruv Shah, Managing Director and Partner, BCG, said.
The report also noted stronger stock market reactions to M&A announcements. Deals generated a median 30-day relative shareholder return of 3.7 per cent in 2026, compared with minus 0.4 per cent in 2024 and minus 2.7 per cent in 2025. (ANI)