India’s deal landscape hit a multi-year high in the third quarter of 2025, with 688 deals worth USD 39.9 billion, according to the Grant Thornton Bharat Q3 2025 Dealtracker. The surge was led by record mergers and acquisitions (M&A) activity and a strong performance in capital markets, marking the highest quarterly deal volumes since Q1 2022 and the largest quarterly deal values so far this year.
On a year-on-year basis, total deal values increased 30 per cent, while volumes rose 8 per cent. Excluding public market issuances, combined M&A and private equity (PE) activity accounted for 629 deals valued at USD 28.7 billion, reflecting a 14 per cent rise in volumes and more than double the value compared to Q2 2025.
Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, said, “Q3 2025 marked a strong growth for India’s deal landscape, with M&A and IPO activity reaching record volumes and values recovering from a subdued Q2. Robust cross-border and domestic transactions, alongside early-stage investments in the consumer and technology sectors, show continued investor confidence. While global uncertainties such as US tariffs and geopolitical tensions remain, domestic reforms and sector-specific growth opportunities are expected to sustain deal momentum.”
M&A activity strengthened significantly in Q3, with 263 transactions valued at USD 22 billion, representing a 34 per cent rise in volume and a 311 per cent jump in values over the previous quarter. Six billion-dollar deals worth USD 15.3 billion contributed 70 per cent of total M&A value. Domestic transactions remained robust, with 191 deals, while cross-border activity dominated in value terms.
The largest M&A transaction was Schneider Electric SE’s acquisition of a 35 per cent stake in Schneider Electric India Pvt Ltd for USD 6.35 billion, marking the biggest manufacturing deal since May 2022. Outbound investments doubled in volume and surged 14 times in value, highlighting the growing scale of Indian companies’ cross-border expansion.
Private Equity And Public Markets
PE activity remained stable with 366 deals worth USD 6.7 billion. Early-stage investments continued to dominate, accounting for nearly 80 per cent of all PE transactions. The top PE deal was Prime Offices Fund’s USD 290 million investment in RMZ One Paramount Pvt Ltd, signalling ongoing investor interest in asset-backed growth opportunities.
Notable unicorns emerged during the quarter, including JumboTail Technologies and Navi Technologies. JumboTail achieved unicorn status via a USD 120 million funding round, while Navi reached unicorn valuation through debt funding.
Capital market activity reached new highs with 34 IPOs and 25 qualified institutional placements (QIPs) each raising USD 5.6 billion. Leading issuances included HDB Financial Services’ USD 1.5 billion IPO, Knowledge Realty Trust REIT’s USD 558 million listing, and SBI’s USD 2.9 billion QIP. These transactions underscored strong investor confidence and deepening structural growth in India’s capital markets.
The consumer and retail sector led deal volumes with 19 per cent of transactions but accounted for only 8 per cent of total value. IT and ITeS recorded 79 deals worth USD 1.4 billion, a 36 per cent rise in volume and 179 per cent increase in value. Manufacturing, automotive, and pharma sectors recorded high-value deals, with Schneider Electric’s acquisition and Tata Group’s Iveco buyout driving manufacturing and automotive deal values, while Torrent Pharma led healthcare deals. BFSI activity declined both in volumes and values, led by fintech and banking segments.
Grant Thornton Bharat highlighted that domestic reforms, sector-specific growth, and robust investor appetite are expected to sustain deal momentum through the remainder of 2025, despite lingering global uncertainties. |
