New Delhi: India’s consumer and retail sector posted strong deal momentum in the third quarter (Q3) of 2025, with 132 transactions worth $3.4 billion — marking a 6% rise in deal volumes and a 9% increase in value compared to Q3 2024, according to a report released on Thursday.
Grant Thornton Bharat’s Consumer and Retail Dealtracker showed that, excluding public market deals, mergers and acquisitions (M&A) and private equity (PE) transactions totalled 121 deals valued at $2.3 billion — a 168% quarter-on-quarter surge in deal value.
This growth was fuelled by five large transactions exceeding $100 million and 26 deals over $10 million, together contributing $2 billion, or 89% of the total deal value. The report attributed this momentum to strong investor confidence in brand-led, scalable, and growth-focused consumer businesses.
“Q3 marked a decisive rebound for India’s consumer and retail sector, with deal volumes climbing to 132 and total value surpassing $3.4 billion — nearly four times higher than the previous quarter,” said Naveen Malpani, Partner and Consumer Industry Leader at Grant Thornton Bharat. “The recovery was driven by renewed investor focus on textiles, apparel and accessories, along with sustained activity in food processing and e-commerce.”
These categories underscore how traditional sectors are intersecting with digital innovation to redefine India’s consumption landscape.
The report also highlighted a revival in outbound M&A, with Indian consumer companies acquiring cross-border assets to diversify product lines and strengthen global footprints.
Textiles, apparel, and accessories remained the most sought-after segment, attracting substantial M&A and PE investments. Meanwhile, food processing and e-commerce benefited from festive demand, with online sales and quick commerce witnessing notable growth.
The average deal size jumped to $18.8 million from $7.2 million in Q2 2025, reflecting a shift toward larger, value-driven transactions backed by strategic and capital-intensive investments.
Public market activity also rebounded sharply in Q3 2025, with six IPOs and five qualified institutional placements (QIPs) raising over $1.1 billion — a 5.5-fold rise in volume and a sharp increase in value from just $36 million in the previous quarter.
