India deal values fall 60% in Jan 2026 to $7.2 bn as big-ticket M&A stalls

January 2026 had 207 transactions in India, including M&A, private equity, IPOs and QIPs. The total deal value was USD 7.2 billion. This is an 11% decline in deal volume and a 60% drop in deal value compared to December 2025. These numbers come from Grant Thornton Bharats Monthly Dealtracker.

The deal value dropped because there were no deals in January 2026. In words the number of deals was steady but the big deals that happened in December 2025 did not happen in January 2026. Private equity activity remained strong with private equity companies continuing to invest in growth-stage and -market transactions.

Now lets look at why the deal value can change quickly. One reason is that a single big deal can make up a part of the total deal value for a month or quarter. If that big deal does not happen the total deal value will drop sharply. Another reason is that companies often do deals at times of the year like the end of the fiscal year or when there is regulatory clarity. If a lot of deals happen in December and none happen in January it can look like the deal value dropped sharply.

The drop in deal value in January 2026 was due to factors. One reason was that big buyers were being selective and taking a break after a 2024-2025. Another reason was that the cost of borrowing money was higher making it harder for companies to do deals. Buyers were also being more careful about the price they paid for companies.

On the side sellers were also being careful. They were waiting for the time to sell their companies and they were not getting the prices they wanted. Some sectors, like data and telecom had issues that made it harder to do deals.

There were also some factors at play. The time of year can affect when deals happen and global events can change how much money is available for deals. Some sectors, like BFSI and tech were still seeing a lot of activity. Others, like energy were quiet.

Even though the deal value dropped private equity activity remained strong. Private equity companies have a lot of money to invest. Can make decisions quickly. They were still doing deals in January 2026 even if the big strategic buyers were not.

So what does this mean for people? For companies that want to buy companies it might be a good time to negotiate prices.. They should not assume that prices will always be low. For equity companies it might be a good time to invest in smaller companies. For companies that want to sell they should be careful about when they sell and make sure they have a story to tell.

For people who advise companies on deals they should be ready for a pace of big deals.. They should also be looking for opportunities in smaller deals. For regulators they should try to make the rules clear so that companies can do deals easily.

Overall January 2026 was a month for deals in India but it does not mean that the whole year will be slow. Private equity activity remained strong. There are still many opportunities for deals in India.

2. The deal value can swing quickly because of a big deals. If those deals do not happen the total deal value will drop. This is what happened in January 2026.

3. There were reasons why the deal value dropped in January 2026. Big buyers were being selective. The cost of borrowing money was higher. Sellers were also being careful. Waiting for the right time to sell.

4. Private equity activity remained strong in January 2026. Private equity companies have a lot of money to invest. Can make decisions quickly.

5. Some sectors, like BFSI and tech were still seeing a lot of activity in January 2026.. Others, like energy were quiet.

6. The drop in deal value in January 2026 matters because it can affect how people feel about the market. It can also affect the jobs of people who work on deals.. It does not mean that the whole market is collapsing.

7. Different people will be affected by the drop in deal value in ways. Companies that want to buy companies might see it as a chance to negotiate prices. Private equity companies might see it as a chance to invest in companies. Companies that want to sell should be careful about when they sell and make sure they have a story to tell.

8. January 2026 was a month for deals in India but it does not mean that the whole year will be slow. Private equity activity remained strong. There are still many opportunities for deals, in India.

2026 is going to be a bit of a bag. The values will be clustered around the big deals and the private equity firms will keep the mid-market deals going at a steady pace. People like PwC are saying that at the start of 2026 we will see a lot of value in a few big transactions and the rest of the months will be a bit quiet. This is what we saw in January.

We need to keep an eye out for things that will get the big deals moving again like companies selling off parts of their business big investors from countries coming back or the government giving the okay for big asset sales. Any of these things could make the big deals happen again in the coming months.

Here are some things that companies and investors should do now:

For the people in charge of companies:

They should take another look at the deals they are thinking about and see if they have the people and resources to make them happen.

They should also think about what the deals might be worth in scenarios like if things go well or if they do not.

They should try to get financing deals but not take on too much debt.

For the equity investors:

They should think about where they are finding their deals and try to find more that are not being sold to the highest bidder.

They should be careful about how much they pay for deals for the mid-market ones where there is not as much competition from other companies.

They should keep an eye on when they can sell their investments because the market for selling might get better later in 2026 if the public markets do well.

For the advisors:

They should become experts in areas like technology, healthcare and financial technology where companies are still doing well.

They should help their clients think about what might happen if the big deals do not happen away and how that will affect their investments over time.

For the people making policies:

They should make sure that the rules for mergers and investments from countries are clear and that they are following a schedule so that companies are not worried about what will happen.

Here are some things to watch out for:

Which big deals will happen again? If one big deal worth a few billion dollars happens it could make up for the slow start in January. We should keep an eye on companies and see if they are selling off any assets.

We should look at the updates from Grant Thornton and other companies that track deals to see if January was a one-time thing or if it is the start of a trend.

We should also watch how fast private equity firms are raising and using money because if they keep investing it means the mid-market is still healthy.

We should look at what’s happening in the capital markets like if companies are raising money through initial public offerings because this can affect how many deals happen.

We should also watch the economic signs, like interest rates and exchange rates and any big policy announcements that could change how much it costs to borrow money and how much risk people are willing to take.

In January 2026 there were 207 deals 7.2 billion dollars, which is a big drop from December 2025 mainly because there were no big deals.. The number of deals only fell by about 11 percent and private equity firms kept investing in the mid-market. This is from Grant Thornton Bharats Dealtracker.

This is more about the timing of the deals and the market rotating than the whole market falling apart. It affects how people feel and the short-term plans. The underlying market, especially, in private capital seems to be okay.

We should watch for the strategic deals to come back and for the big economic signs because either of these could make the monthly totals go back up. The private equity firms will keep doing deals. That will help the market. We just need to be patient and see what happens with the deals and the economy.