India Consumer Sector Logs Higher Deal Count Despite Funding Decline in FY26

Transaction Activity in India’s Consumer Sector increased in FY26, even as total funding declined, as per The Economic Times report. Grant Thornton Bharat reported 510 deals during the year, up from 402 in FY25.  

This is the highest annual deal count seen since the pandemic period. EY’s calendar-year data also showed a rise, with 393 deals in 2025 compared with 359 in 2024. 

Overall Funding Sees a Decline 

Total investment into the sector fell year-on-year. Funding stood at about $8.53 billion in FY26, compared with $9.85 billion in FY25, based on Grant Thornton data.  

EY numbers showed a similar trend, with deal values at $9.03 billion in 2025, down from $10.58 billion in 2024. The drop was largely due to the absence of large transactions. 

Large Deals Remain Limited 

Fewer big-ticket deals were recorded during the year. Cross-border mergers and acquisitions remained subdued, and strategic activity was relatively muted.  

At the same time, investor participation continued through private equity-led investments and exits, which supported the overall deal count. 

Focus Shifts to Smaller Transactions 

Companies increasingly opted for smaller and more targeted deals. Activity was centred around bolt-on acquisitions and additions to existing portfolios. These transactions were aimed at expanding presence across categories, channels and geographies, rather than pursuing scale through large acquisitions. 

Early-Stage Funding Shows Stability 

Funding activity at early stages remained steady. Pre-Series A and Series A investments continued, although with tighter screening of businesses. Larger rounds were fewer, but some companies were able to secure Series B funding. Valuations during this period were more moderate compared with earlier years. 

Read More: Pharma Sector in Focus; Exports Drop 23% In March Amid West Asia Disruptions! 

Conclusion 

The FY26 data shows a shift in deal patterns, with lower funding values but higher transaction volumes, indicating a move towards smaller deals across the consumer sector. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.