India’s consumer and retail sector recorded 127 deals worth USD 1.92 billion in Q3 2026, marking a 31% increase in deal volume, according to Grant Thornton Bharat’s Consumer and Retail Dealtracker. The transactions included mergers and acquisitions (M&A), private equity and venture capital (PE/VC) investments, and public-market activity.
Excluding IPOs and qualified institutional placements (QIPs), M&A and PE/VC activity accounted for 113 deals worth USD 948 million, registering a 19% increase in volume and 3% growth in value quarter-on-quarter. IPOs and QIPs raised a combined USD 975 million, contributing 51% of the overall deal value.
M&A activity recorded 29 deals worth USD 229 million, compared with 19 deals worth USD 179 million in the previous quarter. Domestic transactions accounted for 76% of deal volumes and 86% of deal value. Textiles, apparel and jewellery contributed 59% of M&A value, led by GRT Jewellers' USD 109 million acquisition of a 74% stake in Tribhovandas Bhimji Zaveri.
PE/VC activity remained the largest contributor to private dealmaking, with 84 transactions worth USD 719 million, accounting for 74% of deal volumes and 76% of M&A and PE/VC deal value. Retail technology attracted the highest 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 volume for the first time since Q4 2024.
Public-market activity also strengthened during the quarter, with nine IPOs raising USD 713 million and five QIPs raising USD 262 million. The 14 transactions together raised USD 975 million.
Naveen Malpani, Partner and Consumer, Retail & E-commerce Industry Leader at Grant Thornton Bharat, said investors were increasingly directing capital towards differentiated brands, businesses with strong category positioning and those capable of scaling profitably. He added that activity across jewellery, apparel and lifestyle reflected changing consumer aspirations and premiumisation.
Ankit Ahuja, Partner, Deals Lifecycle at Grant Thornton Bharat, said investors were favouring category leaders and differentiated brands with strong fundamentals, scalable operating models and a clear path to profitable growth.
Among key sectoral trends, personal care and FMCG recorded an increase in combined M&A and PE activity to 20 deals from 12 in the previous quarter. E-commerce registered 17 transactions, with deal volumes rising 42% and values increasing 8%.
Food processing M&A volumes increased from one deal in Q2 to four in Q3, while PE/VC activity included a USD 36 million investment in Urban Harvest. Retail technology witnessed a decline in M&A activity from nine deals to two, although Udaan's pre-IPO investment supported deal values. Consumer durables and home furnishing also saw a recovery, with combined deal volumes increasing from two to eight transactions.
