New Delhi, July 20 (IANS) India’s consumer sector remained resilient recording 97 deals worth $981 million in the second quarter of 2026 even as deal volumes and values eased from the prior quarter, a report said on Monday.
The report from Grant Thornton said overall deal volumes eased 34 per cent quarter‑on‑quarter and deal values moderated 33 per cent.
The deal data reflected a more selective investment environment even as strategic acquisitions and growth‑stage investments continued across high-conviction consumer themes.
Excluding IPOs and QIPs the sector recorded 95 M&A and private equity or venture capital transactions worth $918 million, with deal values above Q2 2025, highlighting continued investor confidence in India’s long-term consumption story.
“Capital is increasingly flowing towards specialised, high‑growth categories rather than traditional consumption themes. Businesses operating in wellness, premium personal care, nutrition and digital‑first consumer brands are attracting disproportionate investor interest as changing consumer preferences create new growth opportunities,” said Naveen Malpani, Partner and Consumer Industry Leader, Grant Thornton Bharat.
Companies are also using acquisitions more strategically to expand into adjacent categories and strengthen their portfolios, he said, adding that the firm expects these emerging consumer themes to continue shaping investment and deal activity in the sector.
M&A activity moderated to 20 deals worth $184 million as both volumes and values nearly halved from the previous quarter.
Domestic transactions continued to anchor activity, accounting for 65 per cent of deal volumes and 58 per cent of deal value, while inbound M&A strengthened significantly, with deal volumes doubling and values rising nearly fivefold.
Strategic acquisitions remained focused on strengthening market presence, expanding product portfolios and enhancing distribution capabilities.
PE/VC activity remained the primary driver of consumer dealmaking, with 75 deals worth $734 million, contributing nearly 80 per cent of both total deal volumes and values.
Investment values remained above Q2 2025 levels, though funding activity moderated quarter on quarter. Investors continued to back scalable companies with strong unit economics and sustainable growth, reflecting a more disciplined approach to capital deployment.
—IANS
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