India’s M&A activity holds ground with US$50.5B in deal value in H1 2025: EY M&A Report

• Power sector dominates with US$8.5B in deal value, driven by renewable energy
• H1 2025 recorded 10 billion-dollar-plus deals, double the number seen in each half of 2024
• June emerges as the strongest month by value (US$8.4B), despite lowest deal volume

New Delhi, 8 August 2025: India’s dealmaking environment remained resilient in the first half of 2025, defying global macroeconomic headwinds and policy uncertainties. According to the latest EY M&A H12025 Report, total deal value stood at US$50 billion, marking a 2% increase over H2 2024, though 17% lower than H1 2024. This relative steadiness, despite fewer transactions, points to a shift in investor strategy: a move toward fewer, high-value, strategic bets.

Deal volume dropped 12% YoY, with 1,285 transactions, as investors shifted focus toward quality and scale. June 2025 exemplified this trend, despite being the strongest month by value (US$8.4 billion, up 104% over May), it saw only 136 transactions, the lowest monthly count in the half and a sharp 46% decline YoY.

Ajay Arora, Partner and National Leader, Investment Banking, EY India, said:

“Investors are clearly moving toward fewer but more strategic bets. The rise in large ticket deals despite a drop in volume reflects a flight to quality, driven by macro concerns and a changing regulatory environment.”

Big-ticket deals on the rise

H1 2025 recorded 10 billion-dollar-plus deals, double the number seen in each half of 2024. While marquee transactions were absent, this trend signals increased consolidation and a cautious but strategic deployment of capital.

Investment momentum builds in Power Sector and Consumer Products and Retail sector

The Power sector has emerged as a frontrunner in this M&A activity, leading the way with a deal value of US$8.5 billion. The Renewable energy sector alone contributed around 80% of the Power sector’s total, marking a significant increase from US$3.2 billion in H1 2024 and US$2.8 billion in H2 2024. This indicates a strong interest in sustainable investments. Strategic transactions dominated the power sector, accounting for approximately USD 6.5 billion out of the total USD 8.5 billion deal value - nearly 85% of the sector’s activity. This strong preference for strategic deals underscores the industry's focus on long-term integration, consolidation of core operations, and alignment with broader energy transition goals.

India is now recognized as the world’s fourth-largest renewable energy market, having attracted over US$4 billion in foreign direct investment (FDI) in the past year alone. With an installed capacity of 220 GW, which accounts for 45% of the country’s total energy mix, the sector has matured into an investor-friendly environment. The presence of over 60 marquee global investors, a strong record of profitable exits, and a progressive policy framework are all contributing to the acceleration of the shift towards Renewable Energy 2.0.

Srishti Ahuja, Partner, Infrastructure, Investment Banking, EY India, said:

“On the back of rising demand, strong government thrust and innovative financing, India is fast-tracking its energy transition with massive renewables rollout and impressive progress in electric mobility, biofuels and green hydrogen. The sector is well placed for an investment of over US$1 trillion in the next 5 years and offers an exciting space for global investors.”

In addition to renewable energy, the Consumer Products and Retail sector have shown stability, leading in deal volume with 205 transactions as compared to 218 in H1 2024 and 203 in H2 2024. This consistency underscores the ongoing interest in consumer-oriented businesses, even amid a shifting economic landscape.

Outlook ahead

The first half of 2025 illustrated profound stability in the M&A landscape despite macroeconomic headwinds and policy uncertainty. The recent announcement of fresh tariffs on Indian exports, in effect since early August has reintroduced uncertainty into the trade environment. Despite these developments, India remains committed to a comprehensive and balanced trade agreements, with a strong focus on protecting key sectors such as MSMEs, agriculture, and services. The industry awaits clarity on tariff structures, regulatory frameworks, and market access which will decide the fate of transactions especially in businesses which have US exposure.

Notes to Editors

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