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.
- 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.
