India’s mergers and acquisitions (M&A) landscape in the first half of 2025 showcased strength, maturity, and strategic depth despite global volatility. With $50 billion in total deal value across 1,285 transactions, the market signalled a clear shift: fewer deals, bigger bets, and an overwhelming domestic focus.
A Market Defined by Fewer Deals, Bigger Value:
- Total M&A value touched $50 billion—slightly up from H2 2024 but below H1 2024 levels.
- Deal volume declined 12% YoY, yet 10 megadeals (>$1B) were recorded—twice the count in each half of 2024.
- June 2025 had the lowest deal volume (136 deals) but the highest deal value ($8.4 billion), highlighting a “flight to quality”.
The Big Story: Domestic Deals Dominate (86% of Volume)
India’s M&A scene turned sharply inward, with domestic deals making up 86% of total activity.
Why this shift?
- Conglomerates consolidating across sectors
- Private equity (PE) firms deploying large pools of dry powder
- Cross-conglomerate stake transfers to optimize portfolios
- Domestic M&A value surged to $44.8 billion, while inbound cross-border M&A slumped to a 9-year low due to global tariff uncertainty and tighter FDI scrutiny.
- Outbound M&A, however, saw a 74% jump, as Indian companies looked abroad—particularly in tech, healthcare, and infrastructure.
Sectors where M&A Hit Huge:
1. Power & Renewable Energy: The power sector led with $8.5B in deals, driven by renewables at $6.8B over twice last year supported by strong 2030 policy targets, rising global investor interest, advanced storage/hybrid systems, and India’s growing renewable capacity of 220 GW.
2. Consumer & Retail: The sector topped the charts in deal volume with 205 transactions, driven by consolidation in FMCG, food processing, and D2C brands. Major highlights included HUL’s acquisition of Minimalist ($315M) and Tilak Nagar’s acquisition of Imperial Blue ($488M).
3. Healthcare: Healthcare outsourcing, especially PE-backed platforms, saw strong momentum. The biggest deal of the year was New Mountain Capital’s $2B acquisition of Access Healthcare.
4. Infrastructure: Government-led capex and rapid logistics modernization boosted infrastructure M&A. A standout transaction was Adani Ports’ $1.97B acquisition of Abbot Point Port.
5. Financial Services: Insurance players continued to consolidate, while fintech M&A jumped 45% YoY, propelled by activity in wealth-tech and digital payments.
6. Technology: With 135 deals, the tech sector hit record disclosed values. Cloud, AI, fintech, and digital infrastructure dominated interest, highlighted by Reliance Jio’s $1.2B cloud acquisition.
Final Takeaway:
H1 2025 proved that India’s M&A ecosystem is no longer dependent on global cycles—it’s driven by domestic confidence, strategic clarity, and long-term value creation. The rise of megadeals, the domination of renewables, and the surge in PE-backed activity all point toward a market that is evolving rapidly and becoming globally competitive.
India isn’t just reacting to global trends—it’s shaping them.
