The consumer and retail sector recorded 127 deals valued at $1.92 billion in Q3 CY2027, including M&A, PE/VC and public-market transactions, as per estimates released by Grand Thornton Bharat. This was 31 per cent higher compared to Q2 CY2026.
Nearly 51 per cent of the overall deal value for the sector was contributed by IPOs and QIPs valued at $975 million.
According to the Grant Thornton Bharat Consumer and Retail Dealtracker, M&A and PE/VC activity, excluding IPOs and QIPs, comprised 113 deals worth $948 million, up 19 per cent in volume and 3 per cent in value quarter-on-quarter, reflecting a shift towards smaller-ticket transactions and a lower concentration of high-value deals.
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. The activity across jewellery, apparel and lifestyle reflects changing consumer aspirations and premiumisation, while the growing contribution of public markets highlights the expanding funding options available to established consumer businesses. As demand patterns evolve, the ability to build lasting consumer relationships and sustain growth will be critical to creating long-term value.”
M&A activity was pegged at 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 the role of Indian strategic buyers in driving consolidation, it added. Textiles, apparel and jewellery contributed to large chunk of M&A value, led by GRT Jewellers’ $ 109 million acquisition of a 74 per cent stake in Tribhovandas Bhimji Zaveri Ltd.
Meanwhile, PE and VC activity remained the largest contributor to dealmaking, with 84 deals worth $719 million, accounting for 74 per cent of deal volume.
At the same time, public market activity strengthened during Q3 2026, with nine IPOs raising $713 million and five QIPs raising $262 million. “Together, the 14 transactions raised $975 million, accounting for approximately 51 per cent of total deal value. The contribution of public markets exceeded the combined value of M&A and PE/VC activity, highlighting the importance of listed-market funding for consumer and retail businesses seeking capital for growth and expansion,” it added.
Ankit Ahuja, Partner, Deals Lifecycle, Grant Thornton Bharat, commented,” In Q3 2026, investors became increasingly selective, favouring category leaders and differentiated brands with strong fundamentals, scalable operating models and a clear path to profitable growth. The breadth of activity also points to investors’ preference for businesses with proven execution capabilities and the ability to strengthen their position as markets scale. 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.”
Published on October 26, 2026
