Inside India’s US$26 Billion Mergers & Acquisitions—and Why 2026 Could Be Bigger

India’s mergers & acquisition (M&A) activities have continued to demonstrate resilience amid global economic uncertainty, supported by strong domestic demand, balance sheet consolidation, and sustained investor confidence.

Despite tighter monetary conditions globally and geopolitical volatility, dealmaking in India remained active, with large transactions reshaping sectors such as technology, energy, infrastructure, financial services, and manufacturing.

India recorded M&A transactions worth approximately US$26 billion till November 2025, reflecting a sharp year-on-year increase and defying broader global trends of subdued deal flow. According to an EY analysis of deal activities, this momentum underscores India’s position as one of the most attractive M&A markets among major emerging economies, driven by long-term growth fundamentals and an evolving regulatory environment.

In this article, we review the most significant domestic and cross-border M&A developments in 2025, identify sectors that led transaction volumes, examine regulatory reforms shaping deal execution, and outline the outlook for 2026.

Large domestic deals anchor 2025 momentum

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High-value domestic transactions played a central role in sustaining India’s M&A momentum throughout 2025. Indian corporates increasingly used acquisitions to consolidate fragmented markets, acquire technology and operational capabilities, and strengthen supply chains amid a volatile global environment.

EY data indicates that domestic M&A accounted for a substantial share of total deal value during the year, supported by strong corporate balance sheets and improved earnings visibility. Consolidation-led activity was particularly evident in energy, infrastructure, financial services, and industrial manufacturing, with transactions driven primarily by strategic considerations rather than short-term financial engineering.

Several clear trends shaped domestic dealmaking in 2025:

• Increased consolidation in capital-intensive sectors such as power, renewables, and infrastructure
• Acquisition-led expansion by large conglomerates seeking operational and scale synergies
• Strategic buyouts by listed companies aimed at simplifying group structures and unlocking shareholder value

Source: Financial Express

Asia-Pacific M&A activity in Q3 2025: India in focus

M&A activity across the Asia-Pacific region (APAC) demonstrated notable resilience in Q3 2025, with 2,519 announced deals valued at US$107.2 billion, even as global dealmaking remained constrained by geopolitical and macroeconomic uncertainty, according to the S&P Global. Against this backdrop, India has stood out as one of the region’s most compelling M&A markets, benefiting from a convergence of domestic consolidation, sustained foreign capital inflows, and incremental regulatory reform.

While China continued to lead the region in aggregate deal value, India’s M&A momentum was driven less by megadeals and more by consistent, strategically motivated transactions across core sectors. Energy, infrastructure, financial services, and industrial manufacturing accounted for a significant share of deal activity, reflecting a structural shift toward scale-building, asset optimisation, and supply-chain resilience. Indian corporates increasingly used acquisitions not only to consolidate fragmented markets but also to secure technology capabilities and enhance operational efficiency—mirroring broader industrial consolidation trends across Asia-Pacific.

India’s relative outperformance was also underpinned by robust private equity (PE) participation and rising inbound investment, as global investors sought exposure to markets offering scale, demand-led growth, and regulatory predictability. 

According to the Mergermarket report published on December 17, 2025, India’s M&A activities have cemented its position as one of APAC’s most resilient and attractive deal markets. PE activity, particularly in business services, technology, and consumer-facing sectors, remained a critical driver, supported by segments relatively insulated from global trade and tariff-related disruptions.

Overall, Q3 2025 reinforced India’s emergence as a central pillar of Asia-Pacific dealmaking. The combination of sustained domestic consolidation, accelerating inbound capital, and improving regulatory clarity positions India well for continued M&A momentum heading into 2026.

Technology and digital services continue to drive volumes

Technology and digital services remained among the most active sectors by deal volume in 2025, even as valuations moderated from earlier peaks. Mid-sized acquisitions dominated the space, with buyers targeting capabilities in artificial intelligence, cloud infrastructure, fintech, and enterprise software.

Rather than headline mega-deals, the year saw a steady pipeline of strategic acquisitions aimed at strengthening product portfolios and accelerating digital transformation. Indian IT services firms, in particular, used acquisitions to deepen domain expertise and expand geographic reach.

According to EY’s Q3 2025 analysis, technology-driven transactions continued to attract both strategic buyers and financial investors, supported by India’s strong talent base and growing enterprise adoption of digital solutions. While venture capital funding slowed relative to previous years, M&A increasingly emerged as a preferred exit route for mature startups.

Manufacturing, energy, and infrastructure gain prominence

Beyond technology, 2025 marked a notable rise in deal activity across manufacturing, energy, and infrastructure sectors. This shift reflects India’s policy emphasis on domestic manufacturing and energy transition, supported by production-linked incentive (PLI) schemes and infrastructure investment programs.

Manufacturing M&A focused on:

• Capacity expansion through bolt-on acquisitions;
• Backward integration to secure supply chains;
• Technology acquisition to improve productivity and compliance.

Energy sector transactions, particularly in renewables, continued to attract long-term capital, with buyers seeking operational assets rather than early-stage development risks. Infrastructure deals, meanwhile, benefited from improved project pipelines and greater clarity around public-private partnership (PPP) frameworks.

As noted in industry commentary published by the International Bar Association, M&A activity in these sectors is increasingly aligned with India’s ambition to scale its economy toward a US$30 trillion target over the long term.

Regulatory reforms to improve deal efficiency

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A key factor supporting M&A momentum in 2025 was continued regulatory refinement aimed at improving deal execution and certainty. Several reforms introduced or implemented during the year focused on streamlining approvals, enhancing transparency, and reducing friction in transaction timelines:

Key regulatory developments included:

• Clarifications under competition law to expedite merger review processes for nonproblematic transactions;
• Ongoing refinements to insolvency and bankruptcy procedures to facilitate faster assets resolution;
• Tax-related guidance addressing ambiguities in indirect transfers and capital gains treatment.

As outlined in recent analyses of India’s M&A reforms, these changes collectively reduce regulatory risk and improve predictability for deal makers, particularly in complex multi-jurisdictional transactions.

Legal advisors also note increasing sophistication in deal structures, with greater use of escrow mechanisms, deferred consideration, and warranty protections aligned with international practices.

SEBI’s proposed takeover code reforms

As per the latest reports, the Securities and Exchange Board of India (SEBI) has initiated steps to overhaul India’s takeover regulations with the objective of improving fairness and expediting deal completion. SEBI has indicated that proposed amendments to the takeover code will be released for public consultation, signaling a shift toward more transparent and time-bound M&A processes.

Among the proposed changes under consideration:

• Restrictions on acquirers negotiating preferential terms or higher prices with large shareholders for a defined period following an open offer;
• A reduction in the open offer completion timeline from the current two months to approximately 30 days, supported by faster regulatory clearances;
• Mandatory external valuations for certain private share transfers involving significant shareholders, aimed at curbing preferential treatment.

These proposals seek to address past concerns where controlling shareholders received terms not extended to minority investors, while simultaneously shortening transaction timelines. The reforms are being introduced against the backdrop of rising M&A activity, supported by increased foreign investment and regulatory easing, including the Reserve Bank of India’s (RBI) decision to permit domestic banks to finance acquisition transactions.

PE and strategic buyers reshape dynamics

PE investors remained active participants in India’s M&A market, although deal strategies evolved in response to valuation discipline and exit considerations. Buyouts, minority growth investments with control features, and platform acquisitions dominated PE activity in 2025.

At the same time, strategic buyers regained prominence, particularly in sectors where synergies and long-term integration offered clearer value creation. This shift resulted in more balanced competitions between financial and strategic investors, often benefiting sellers through structured deal terms rather than headline valuations alone.

Tax and legal professionals observed that PE exits increasingly occurred through secondary sales and strategic acquisitions, rather than public market listings, reflecting more pragmatic exit planning.

Outlook for 2026: strategic growth with selective acceleration

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Looking ahead, India’s M&A outlook for 2026 appears cautiously optimistic. While global macroeconomic risks persist, India’s domestic growth drivers, infrastructure pipeline, and regulatory stability provide a supportive backdrop for continued dealmaking.

Several factors are likely to shape M&A activity in 2026:

• Continued consolidation in capital-intensive and regulated sectors;
• Increased outbound acquisitions by Indian companies as the globe stabilizes;
• Greater focus on operational synergies and post-merger integration discipline;
• Ongoing refinement of competition, tax, and insolvency frameworks.

As market observers note, deal volumes may remain steady even if valuations stay disciplined. The emphasis is expected to remain on strategic fit, scalability, and long-term value creation rather than short term financial arbitrage.

ALSO READ: Dealmaking in India & Assessing Target Company Non-Compliance

Conclusion

India’s M&A landscape in 2025 reflects a market that has matured in both scale and sophistication. Strong domestic transactions, resilient cross-border activity, and regulatory improvements have positioned India as a stable and attractive deal environment amid global uncertainty.

Rather than chasing volume alone, dealmakers increasingly focus on strategic alignment, execution certainty, and sustainable value creation. If current trends persist, 2026 is likely to see India consolidate its role as one of the most dynamic and resilient M&A markets globally.

(US$1 = INR 89.83)

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