Indian M&A Deal Values Drop 60% in January
What happened
Deal values in India fell 60% to $7.2 billion in January 2026, with the number of deals also down 11% month-over-month. The sharp decline is attributed to a stall in big-ticket M&A transactions. However, activity in the mid-market and growth deal segments reportedly remains active.
Why it matters
- M&A-specific activity saw a significant downturn, with 73 deals valued at $3.1 billion, a 64% drop in value and a 33% fall in volume compared to December 2025. - The technology sector dominated deal values, largely due to a single transaction: Coforge's $2.4 billion all-stock acquisition of Encora, which accounted for nearly 40% of the total M&A value for the month. - Private equity and venture capital activity showed resilience with 126 deals worth $2.7 billion; however, the average PE deal size fell to $21.6 million from $43.3 million in December, indicating a focus on smaller, growth-stage investments. - Inbound M&A is expected to be a key theme for 2026, building on a strong 2025 that saw significant cross-border transactions, such as Emirates NBD's acquisition of a controlling stake in RBL Bank. - The retail and consumer sector was the most active by the number of deals, with 39 transactions announced in January. - The Banking and Financial Services (FIG) sector experienced a significant correction in deal value, dropping to $466 million across 17 deals, which was attributed to a high base effect from the previous month. - Key private equity deals in January included Warburg Pincus acquiring a stake in a unit of Lemon Tree Hotels and investing an additional $106.2 million. - Future deal sentiment in early 2026 is expected to be influenced by policy decisions in the upcoming Union Budget 2026 and progress on the India-EU free trade agreement.
Key numbers
- Deal values in India fell 60% to $7.2 billion in January 2026, with the number of deals also down 11% month-over-month.
- - M&A-specific activity saw a significant downturn, with 73 deals valued at $3.1 billion, a 64% drop in value and a 33% fall in volume compared to December 2025.
- The technology sector dominated deal values, largely due to a single transaction: Coforge's $2.4 billion all-stock acquisition of Encora, which accounted for nearly 40% of the total M&A value for the month.
- Private equity and venture capital activity showed resilience with 126 deals worth $2.7 billion; however, the average PE deal size fell to $21.6 million from $43.3 million in December, indicating a focus on smaller, growth-stage investments.
What happens next
- Inbound M&A is expected to be a key theme for 2026, building on a strong 2025 that saw significant cross-border transactions, such as Emirates NBD's acquisition of a controlling stake in RBL Bank.
- Future deal sentiment in early 2026 is expected to be influenced by policy decisions in the upcoming Union Budget 2026 and progress on the India-EU free trade agreement.
Quick answers
What happened in Indian M&A Deal Values Drop 60% in January?
Deal values in India fell 60% to $7.2 billion in January 2026, with the number of deals also down 11% month-over-month. The sharp decline is attributed to a stall in big-ticket M&A transactions. However, activity in the mid-market and growth deal segments reportedly remains active.
Why does Indian M&A Deal Values Drop 60% in January matter?
M&A-specific activity saw a significant downturn, with 73 deals valued at $3.1 billion, a 64% drop in value and a 33% fall in volume compared to December 2025. The technology sector dominated deal values, largely due to a single transaction: Coforge's $2.4 billion all-stock acquisition of Encora, which accounted for nearly 40% of the total M&A value for the month. Private equity and venture capital activity showed resilience with 126 deals worth $2.7 billion; however, the average PE deal size fell to $21.6 million from $43.3 million in December, indicating a focus on smaller, growth-stage investments. Inbound M&A is expected to be a key theme for 2026, building on a strong 2025 that saw significant cross-border transactions, such as Emirates NBD's acquisition of a controlling stake in RBL Bank. The retail and consumer sector was the most active by the number of deals, with 39 transactions announced in January. The Banking and Financial Services (FIG) sector experienced a significant correction in deal value, dropping to $466 million across 17 deals, which was attributed to a high base effect from the previous month. Key private equity deals in January included Warburg Pincus acquiring a stake in a unit of Lemon Tree Hotels and investing an additional $106.2 million. Future deal sentiment in early 2026 is expected to be influenced by policy decisions in the upcoming Union Budget 2026 and progress on the India-EU free trade agreement.
