India consumer and retail deals rise 31 pc in Q3 2026: Grant Thornton Bharat
IPOs and QIPs account for 51 per cent of total deal value as jewellery, apparel, personal care and e-commerce attract investor interest.
India’s consumer and retail sector recorded 127 deals worth USD 1.92 billion in the July-September quarter of 2026, with public-market fundraising accounting for more than half of the total deal value, according to Grant Thornton Bharat’s Consumer and Retail Dealtracker.
Investor activity remained focused on branded consumer businesses, particularly jewellery, apparel and lifestyle, as companies explored opportunities for expansion and capital raising.
The 127 transactions included mergers and acquisitions (M&A), private equity and venture capital (PE/VC) investments, initial public offerings (IPOs) and qualified institutional placements (QIPs). IPOs and QIPs together raised USD 975 million, accounting for approximately 51 per cent of the overall deal value.
Deal volumes increase by 19 pc
Excluding public-market transactions, M&A and PE/VC activity comprised 113 deals worth USD 948 million. Deal volumes increased 19 per cent quarter-on-quarter, while deal value rose 3 per cent, indicating higher transaction activity alongside relatively modest growth in the aggregate value of private-market deals.
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The findings point to continued investor interest in India’s consumption-led businesses, although capital allocation is increasingly centred on differentiated brands, established category positions and scalable business models.
Naveen Malpani, Partner and Consumer, Retail & E-commerce Industry Leader at Grant Thornton Bharat, said India’s consumption story continues to attract investor interest, but capital is increasingly directed towards businesses with differentiated brands, strong category positioning and the ability to scale profitably.
He said activity across jewellery, apparel and lifestyle reflects changing consumer aspirations and premiumisation, while the growing contribution of public markets is expanding the funding options available to established consumer businesses. Building lasting consumer relationships and sustaining growth will be critical to creating long-term value as demand patterns evolve.
M&A deals increase as jewellery and apparel attract buyers
M&A activity strengthened during the quarter, with 29 transactions worth USD 229 million, compared with 19 deals valued at USD 179 million in the April-June quarter, said the Grant Thornton Bharat Consumer and Retail Dealtracker, Q3 2026.
Domestic transactions accounted for 76 per cent of M&A deal volumes and 86 per cent of deal value, highlighting the role of Indian strategic buyers in driving consolidation across the consumer and retail landscape.
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Textiles, apparel and jewellery together contributed 59 per cent of M&A deal value. A key transaction was GRT Jewellers’ USD 109 million acquisition of a 74 per cent stake in Tribhovandas Bhimji Zaveri Ltd.
The transaction activity highlights strategic interest in jewellery and other consumer categories benefiting from changing purchasing preferences. Personal care and fast-moving consumer goods (FMCG) also attracted buyers seeking to strengthen their portfolios and expand their presence across established and emerging categories.
PE/VC investments account for most private market deals
Private equity and venture capital remained the largest contributor to transaction volumes, recording 84 deals worth USD 719 million. The segment accounted for 74 per cent of total deal volumes and 76 per cent of the combined value of M&A and PE/VC activity.
Investment volumes increased 11 per cent quarter-on-quarter, with early-stage and mid-market transactions continuing to drive deal flow. The findings indicate sustained investment activity alongside a greater focus on businesses with differentiated offerings and the potential to scale.
Retail technology attracted the largest disclosed investment value, supported by Udaan’s USD 160 million pre-IPO investment. Personal care recorded a six-fold increase in deal value, while e-commerce emerged as the most active segment by deal volume for the first time since the fourth quarter of 2024.
Ankit Ahuja, Partner, Deals Lifecycle at Grant Thornton Bharat, said investors became increasingly selective in Q3 2026, favouring category leaders and differentiated brands with strong fundamentals, scalable operating models and a clear path to profitable growth.
He added that the breadth of activity points to a preference for businesses with proven execution capabilities and the ability to strengthen their positions as markets expand. As the sector matures, M&A and growth capital are likely to support category expansion, portfolio strengthening and the pursuit of leadership positions in high-growth segments.
E-commerce and personal care drive sectoral activity
E-commerce recorded 17 transactions during the quarter, all involving PE investments. Deal volumes increased 42 per cent, while deal values rose 8 per cent, making the segment the most active by deal volume for the first time since Q4 2024.
Personal care and FMCG also recorded stronger activity. Combined M&A and PE deal volumes increased to 20 from 12 in the previous quarter. M&A transactions rose to five from three, while PE deals increased to 15 from nine. PE investment values in the segment rose six-fold, according to the report’s sectoral highlights.
Food-processing M&A volumes increased to four deals from one in Q2, although deal values declined 86 per cent in the absence of large transactions. PE/VC activity included a USD 36 million investment in Urban Harvest.
Retail technology experienced a decline in M&A activity, with deal volumes falling to two from nine and values declining 85 per cen. However, Udaan’s USD 160 million pre-IPO investment supported investment activity in the segment.
Consumer durables and home furnishing showed a recovery, with combined M&A and PE/VC volumes increasing to eight deals from two in the previous quarter.
IPOs and QIPs strengthen consumer sector funding
Public-market fundraising gained prominence during the quarter, with nine IPOs raising USD 713 million and five QIPs mobilising USD 262 million. Together, the 14 transactions raised USD 975 million, exceeding the combined USD 948 million value of M&A and PE/VC deals.
The results underline the growing importance of public markets as a funding channel for consumer and retail businesses seeking capital for growth and expansion.
Overall, Grant Thornton Bharat’s findings point to sustained dealmaking across consumer categories, supported by strategic acquisitions, private investment and public-market fundraising. The emphasis on differentiated brands, category positioning and profitable growth suggests that investors are paying close attention to businesses’ ability to scale and sustain their competitive positions.
