India recorded a historic spike in deal activity in February, closing 226 mergers, acquisitions, and private equity transactions worth US$ 7.2 billion — marking the highest monthly deal volume in the past three years, as per Grant Thornton Bharat’s Dealtracker report.
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India’s mergers and acquisitions (M&A) and private equity (PE) landscape witnessed a record-breaking surge in February 2025, with 226 deals amounting to US$ 7.2 billion, according to the latest Dealtracker report by Grant Thornton Bharat. This marks the highest monthly deal volume in the past three years, signaling strong momentum in India’s deal-making ecosystem despite global economic headwinds.
The report highlights a sharp 67% increase in deal volumes and a staggering 5.4-fold jump in deal values compared to February 2024. Additionally, the numbers reflect a 14% rise over January 2025, indicating continued strength in the country’s corporate activity.
In February alone, 85 M&A transactions worth US$ 4.8 billion were sealed. Domestic deals dominated the M&A space, contributing 68% of the volumes and 78% of the overall transaction values. The report noted that outbound deals saw robust growth, while inbound deal values experienced a notable decline.
“Despite global uncertainties, such as reduced foreign investments in Indian public markets and the threat of trade tariffs, India’s deal market remained resilient, buoyed by solid domestic demand,” Grant Thornton Bharat stated.
Among the headline-making deals, ONGC-NTPC Green Energy’s US$ 2.3 billion acquisition of Ayana Renewable Power stood out as the largest transaction, significantly bolstering the energy and natural resources sector. Another prominent deal was the Praana Group’s US$ 755 million acquisition of Owens Corning’s glass reinforcement business, which accounted for a dominant share—nearly 89%—of the manufacturing sector’s total deal value for the month.
The media and entertainment segment also saw a notable uptick, particularly in sports and gaming. A standout deal was Torrent Group’s US$ 872 million acquisition of Irelia Sports, the owner of IPL franchise Gujarat Titans, signaling rising interest in India’s growing sports economy.
Zen Technologies and Nitco Ltd were particularly active, with each company acquiring four businesses, contributing significantly to the spike in M&A volumes.
Private equity activity was equally robust, with 141 deals worth US$ 2.4 billion, marking the highest PE deal volume since May 2022. The report notes that PE activity has been on a consistent upward trajectory since November 2024.
Early-stage investments (Seed to Series A rounds) remained the key driver, accounting for nearly 50% of total PE deal volumes. Sectors like retail and consumer, IT & ITES, banking and financial services, and pharmaceuticals, healthcare, and biotech collectively contributed 60% of the total PE deal volumes.
Among the key PE transactions was Cube Highways’ US$ 487 million investment in two major road infrastructure projects — the Quazigund Expressway and the Athaang Jammu Udhampur Highway. Another significant deal was Multiples Alternate Asset Management’s USD 200 million investment in Qburst Technologies, reflecting confidence in the IT and IT-enabled services space.
The report outlined divergent patterns between M&A and PE activity. While M&A deal volumes have been steadily rising for the past four months, total deal values have been on a downward trend since December 2024. In contrast, PE deals have seen a steady rise in both volumes and values month-on-month.
Outbound M&A deals witnessed significant increases in both volume and value, while inbound transactions saw a sharp decline in value terms. This trend underscores the growing appetite of Indian companies to pursue international acquisitions amid a volatile global market.
Traditional sectors such as energy and natural resources, media and entertainment, manufacturing, and infrastructure management drove value growth, accounting for 66% of total deal values. On the other hand, volume growth was largely driven by new-age and consumer-centric sectors, including retail, IT & ITES, and financial services.
Looking ahead, Grant Thornton Bharat highlighted that India’s Union Budget 2025 is likely to serve as a catalyst for continued deal momentum. The Budget includes tax incentives for start-ups and MSMEs, increased capital expenditure outlays, and sector-specific initiatives targeting manufacturing, infrastructure, energy, and banking sectors.
“The Union Budget’s pro-growth measures will likely enhance deal-making in sectors aligned with India’s economic priorities,” the report said. These include renewable energy, industrial capacity expansion, infrastructure development, and fintech, among others.
India’s deal making landscape continues to demonstrate resilience and adaptability, even amid global economic headwinds. The robust domestic economy, coupled with strategic government interventions, is expected to fuel sustained M&A and PE activity in the months ahead.
“As the Indian deal landscape continues to evolve, it will be interesting to see how these trends play out through the rest of 2025,” the report concluded.
This record-setting month positions India as one of the most active deal markets globally, reflecting optimism across sectors and investor confidence in the country’s long-term growth story.
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