Consumer and Retail Sector Records 127 Deals Valued at $1.92 Billion in Q3, Says Grant Thornton Bharat

The Indian consumer and retail sector recorded 127 transactions valued at $1.92 billion in Q3 CY2027, according to estimates released by Grant Thornton Bharat. This overall activity represents a 31 per cent increase compared to Q2 CY2026, encompassing mergers and acquisitions (M&A), private equity (PE), venture capital (VC), and public-market transactions.

Data from the Grant Thornton Bharat Consumer and Retail Dealtracker indicates that public market activity played a major role during the quarter. IPOs and QIPs contributed $975 million, accounting for nearly 51 per cent of the sector's overall deal value. Specifically, public market activity included nine initial public offerings that raised $713 million and five qualified institutional placements raising $262 million. The combined public market transactions exceeded the total value of M&A and PE/VC activity for the period.

Meanwhile, M&A and PE/VC activity, when excluding IPOs and QIPs, comprised 113 deals worth $948 million. This showed a 19 per cent increase in volume and a 3 per cent rise in value quarter-on-quarter, pointing toward a trend of smaller-ticket transactions and fewer high-value deals.

Private equity and venture capital remained the largest contributors to dealmaking volume, recording 84 deals worth $719 million and accounting for 74 per cent of total deal volume. M&A activity was recorded at 29 deals worth $229 million in Q3 2026, compared to 19 deals valued at $179 million in the previous quarter. Domestic transactions drove the majority of M&A, accounting for 76 per cent of deal volumes and 86 per cent of deal value. Textiles, apparel, and jewellery contributed significantly to the M&A value, highlighted by GRT Jewellers' $109 million acquisition of a 74 per cent stake in Tribhovandas Bhimji Zaveri Ltd.

Naveen Malpani, Partner and Consumer, Retail & E-commerce Industry Leader at Grant Thornton Bharat, noted that investor interest remains strong in India's consumption sector, with capital increasingly directed toward businesses offering differentiated brands and scalable operating models. He added that jewellery, apparel, and lifestyle segments reflect changing consumer aspirations toward premiumisation.

Ankit Ahuja, Partner, Deals Lifecycle at Grant Thornton Bharat, observed that investors exhibited selective behavior during the quarter, favoring category leaders with strong fundamentals and clear paths to profitability. As the sector matures, M&A and growth capital are expected to continue supporting category expansion and market positioning.

"The data from Grant Thornton Bharat highlights a maturing consumer and retail market in India where investors are prioritizing operational efficiency and sustainable growth over sheer deal volume. The strong reliance on public markets through IPOs and QIPs shows that established consumer brands are finding viable avenues for growth capital. For early-stage and growing enterprises, this trend emphasizes the importance of building solid unit economics and differentiated brand positioning to attract both private and public investments." — Dr. Shishir Gupta, Founder & CEO, StartupLanes