India’s deal-making activity eased in May 2026 after an unusually strong April, but continued to show resilience as a handful of large transactions supported overall value, according to a Grant Thornton Bharat report. The month recorded 190 deals worth USD 10.2 billion, reflecting a sharp moderation in volumes and value from the previous month’s elevated base, which had been boosted by a USD 11.8 billion acquisition by Sun Pharma.
Despite the monthly decline, underlying momentum in transaction activity remained steady, with deal values broadly stable when adjusted for April’s one-off mega deal. The report highlighted that capital continued to concentrate in a small number of high-value transactions, with two billion-dollar deals across mergers and acquisitions (M&A) and private equity accounting for nearly 42 per cent of total deal value in May.
M&A activity totalled 76 deals worth USD 6.3 billion, marking a decline of 26 per cent in volumes and 66 per cent in value compared with April. However, the segment still represented one of the strongest monthly performances of the year outside April’s outlier-driven spike. The average deal size fell to USD 54 million from USD 103 million in April, reflecting fewer mega transactions and a normalisation in deal composition.
Cross-border transactions continued to anchor M&A value, particularly outbound deals, which accounted for 76 per cent of total M&A value. Outbound activity was led by Bharti Airtel’s USD 2,968 million increase in its stake in Airtel Africa plc, the largest overseas acquisition by an Indian corporate in the telecom sector in recent periods. Inbound transactions, though limited to six deals, rose in value to USD 393 million, supported by Prudential PLC’s USD 368 million acquisition of a 75 per cent stake in Bharti AXA Life Insurance Company Ltd.
Domestic M&A remained active in terms of volume, contributing 61 per cent of transactions, but accounted for only 17 per cent of value as most deals were either undisclosed or valued below USD 50 million. Overall, domestic deals totalled 46 transactions worth USD 1.1 billion, while outbound deals reached 24 transactions worth USD 4.8 billion.
Private equity activity remained robust in value terms despite subdued volumes. The segment recorded 114 deals worth USD 3.9 billion, with deal flow increasingly skewed towards large transactions. The month’s standout was a USD 1.642 billion investment in the Rajasthan Royals franchise, which alone accounted for 42 per cent of total private equity value. Excluding this deal, PE activity would have contracted significantly compared with April.
Five transactions above USD 100 million contributed USD 1.2 billion, underscoring continued capital concentration in fewer, high-value bets. The ecosystem also saw the emergence of Skyroot Aerospace as the fifth unicorn of 2026 following a USD 60 million funding round. Mobility platform Rapido also raised USD 240 million, highlighting sustained investor appetite in transport and technology-led platforms.
Sectorally, retail and consumer, banking and financial services, manufacturing, and IT services led deal volumes. In value terms, telecom and energy & natural resources dominated, jointly accounting for 59 per cent of M&A value, despite representing a small share of total deal count.
Public market activity remained subdued. Only two initial public offerings raised USD 214 million, while four qualified institutional placements collectively mobilised USD 568 million, indicating cautious equity market participation. Overall, the report suggested that India’s deal landscape in May remained fundamentally stable despite a cooling from April’s peak, with investor confidence anchored in selective high-value transactions across strategic sectors. |
