Indian consumer and retail firms are entering into more deals, but for sharply lower values, says Grant Thornton Bharat’s Consumer and Retail Dealtracker for the March quarter of 2026. While the industry was on a winning streak after the pandemic, investors are now very picky.
War-led disruptions and inflationary pressures are making investors cautious on discretionary items, even as health-focused consumer deals seem resilient. Experts see the overall sectoral trend under pressure due to the macroeconomic challenges. Mint explains why.
How are India's consumer deals going along?
During January-March, the sector saw 145 merger & acquisition and private equity (M&A and PE) deals, up from 139 a year ago, but the total value fell 63% to $1.4 billion. “Investors today are looking more at assets that already have some market acceptability and where there is a clear ability to scale further,” Naveen Malpani, partner and consumer industry leader at Grant Thornton Bharat, told Mint.
“The focus is more on acquiring brands that are complementary to existing portfolios and then scaling them through their own distribution and network strengths,” he said.
The top five deals accounted for 57% of the total deal value, showing value concentration in a few deals.
Which were the standout segments in deals?
In terms of value, personal care was a major contributor at $155 million. It included major transactions like HUL's acquisition of Oziva ($90 million). Other big deals include Marico’s buyouts in the premium health and wellness space—a 75% stake in Skinetiq ($29 million), 60% in protein maker Cosmix Wellness Pvt Ltd ($25 million), 93% in Zea Maize Pvt Ltd that operates 4700BC popcorn ($25 million).
There's a clear trend towards premium wellness products. “We see a lot more interest in premium brands as demand in India’s premium consumption segment has gone up significantly. On the food side specifically, healthy snacking is one category that’s seeing a strong uptick,” Malpani said.
So, are investor tastes changing?
India's deals space has been moving into a high-volume, low-value play for some time. Grant Thornton’s data shows retail and consumer sector M&A saw a 22% rise in volumes and a 3% decline in value in 2025. “What investors are really focused on now is sustainable unit economics, margin visibility, operational efficiency and a clear path to profitability,” Malpani said. “They want to see profit visibility within a reasonable timeframe.”
Investors are no longer taking wild bets on companies at very early stages. Instead, they are focussed on acquiring companies with proven financial strength at reasonable valuations.
What is the year expected to look like for deals?
Deals may continue to see this trend of premium-wellness focus with lower ticket sizes. “Going forward, we expect to see more activity in the D2C space, along with launches and acquisitions of newer brands by large players,” Malpani said.
Public market activity is seen cautious this year, as the March quarter recorded just one initial public offering/qualified institutional placement (IPO/QIP). This is in sharp contrast to the situation a few months ago. In July-September 2025, there were six IPOs and five QIPs. Companies are deferring fundraising as valuations are volatile and the market is cautious. They are turning to alternative funding avenues.
How are the macroeconomic trends affecting deals?
Deal activity has slowed down from the post-covid boom. “Investors have become much more cautious, and given the current market volatility, large-ticket investments are relatively limited,” Malpani said. Macro indicators show the year will not be easy for the sector. Rising fuel costs and broader inflation have made all consumption trends vulnerable.
Predictions of weak rains and the possibility of a strong El Nino are also seen affecting decision-making. This is set to hit rural consumption and hit companies' volume growth goals, as they will focus on price hikes.
“There is some impact on valuations as profitability across businesses remains under pressure,” said Malpani. However, the not-so-price-sensitive premium sector may not be so grim.