New Delhi, Oct 26 (IANS) India's consumer and retail sector recorded 127 deals valued at $1.92 billion in the third quarter of 2026, including mergers and acquisitions (M&A), private equity or venture capital and public-market transactions, a report showed on Monday.

According to a report by Grant Thornton Bharat, M&A and PE/VC activity comprised 113 deals worth $948 million, up 19 per cent in volume and 3 per cent in value quarter-on-quarter, excluding IPOs and QIPs.

IPOs and QIPs contributed $975 million, accounting for 51 per cent of overall deal value, while investor interest remained focused on branded consumer businesses, particularly jewellery, apparel and lifestyle, it added.

M&A activity recorded 29 deals worth $229 million in Q3 2026, compared with 19 deals worth $179 million in Q2.

Domestic transactions accounted for 76 per cent of deal volumes and 86 per cent of deal value, highlighting consolidation driven by Indian strategic buyers.

Textiles, apparel and jewellery contributed 59 per cent of M&A value. Personal care and FMCG also attracted strategic interest as buyers sought to strengthen portfolios.

PE/VC activity remained the largest contributor to dealmaking with 84 deals worth $719 million, accounting for 74 per cent of deal volumes and 76 per cent of M&A and PE/VC deal value.

Moreover, investment activity increased 11 per cent quarter-on-quarter by volume, with early-stage and mid-market transactions continuing to drive deal flow.

However, retail technology attracted the largest disclosed investment value, the report said.

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 strengthened during Q3 with nine IPOs raising $713 million and five QIPs raising $262 million.

Naveen Malpani, Partner and Consumer, Retail & E-commerce Industry Leader, 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."

Sectorally, personal care and FMCG saw combined deals rise to 20 from 12 with PE values up six-fold, while e-commerce logged 17 PE deals with volumes up 42 per cent.

--IANS

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