India’s retail sector recorded 146 merger and acquisition deals valued at $1.5 billion in March quarter of 2026, including one public market transaction, reflecting a strong recovery in deal volumes alongside a sharp moderation in values, a report by Grant Thornton Bharat noted.
While deal volumes increased 21 per cent from 120 to 146 deals but deal values declined 59 per cent from $3.4 billion to $1.4 billion. The report noted that this indicated a continued shift towards smaller, strategic transactions in the absence of large-ticket deals.
Naveen Malpani, Partner and Consumer Industry Leader, Grant Thornton Bharat, said, “Q1 2026 reflects a phase of measured recovery in India’s consumer and retail sector, with deal volumes rebounding even as capital deployment remains selective. We are seeing a clear shift towards profitability-led growth, premiumisation and brand-led strategies, with investors focusing on resilient segments with pricing power. Categories such as personal care and food processing continue to attract strong interest, driven by evolving consumer preferences around health, convenience and premium offerings, alongside continued portfolio sharpening by both domestic and global players.”
The top five M&A and PE deals accounted for 57 per cent of total deal value, reflecting a high degree of concentration in a handful of large transactions despite overall moderate deal sizes. The largest deal of the quarter was Hindustan Unilever Ltd’s acquisition of a 49 per cent stake in Zywie Ventures Pvt. Ltd for $90 million.
M&A strengthened
The report noted that with 40 deals valued at $358 million in the March quarter, M&A activity strengthened in volume terms, driven primarily by domestic transactions, with a pickup in cross-border deal count. However, average deal sizes contracted, signalling a continued focus on consolidation-led and selective acquisitions rather than scale-driven investments. The largest deal of the quarter was Hindustan Unilever Ltd’s acquisition of a 49 per cent stake in Zywie Ventures Pvt. Ltd for $90 million. M&A activity remained concentrated in food processing, personal care and FMCG, with a clear focus on portfolio expansion, premiumisation and capability building.
"With 105 deals valuing $1.1 billion, Private equity and Venture Capital activity remained resilient, with steady deal flow and sustained investor interest in scalable, profitability-led businesses, despite a more measured and disciplined funding environment,” it added. The largest deal of the quarter in this space was General Atlantic’s acquisition of a 7 per cent stake in Balaji Wafers Pvt. Ltd for $278 million.
Published on April 20, 2026