India's Tech Deals Reach $2.5 Billion In Q2 2026

India's technology sector has recorded its highest deal activity in five quarters, with 80 deals worth $2.5 billion in the second quarter of 2026. This represents an 18% increase in deal volumes compared to the previous quarter.

The report by Grant Thornton Bharat reveals that while deal values decreased by 35% due to the absence of large outbound acquisitions, the number of deals reached a five-quarter high. This growth is driven by increased participation in mergers and acquisitions (M&A) and private equity, with a focus on artificial intelligence (AI), cloud, cybersecurity, and digital engineering capabilities.

Start-up M&A activity also saw its strongest quarter in six quarters, indicating a growing interest in acquiring innovative businesses. Investor interest remains strong in AI, enterprise technology, and digital infrastructure, with a focus on companies demonstrating strong fundamentals and long-term growth potential.

According to Raja Lahiri, Partner and Technology Industry Leader at Grant Thornton Bharat, the increase in deal volumes reflects a more balanced technology deal market. He expects this trend to continue, supporting sustained deal activity in the coming quarters.

M&A activity saw a significant increase, with 28 deals worth $996 million, up 33% in volume compared to the previous quarter. Private equity and venture capital (PE/VC) activity remained robust, with 52 deals totaling $1.5 billion. However, public market activity was muted, with no initial public offerings (IPOs) or qualified institutional placements (QIPs) in the quarter.

Despite the slower capital market activity, companies with strong fundamentals, proven profitability, and clear earnings visibility continued to attract investor interest through private fundraising avenues. This trend is expected to continue, with investors focusing on businesses with strong growth potential.

The Indian technology sector's strong deal activity is a positive sign for the industry, indicating a growing interest in innovative businesses and technologies. With a focus on AI, cybersecurity, and digital engineering, the sector is expected to continue to attract investments and drive growth.

The report's findings suggest that the Indian technology sector is becoming increasingly attractive to investors, with a growing number of deals and investments in the sector. This trend is expected to continue, with the sector playing a key role in driving India's economic growth.

In conclusion, the Indian technology sector's deal activity has reached a five-quarter high, with 80 deals worth $2.5 billion in the second quarter of 2026. This growth is driven by increased participation in M&A and private equity, with a focus on AI, cybersecurity, and digital engineering capabilities. With a growing interest in innovative businesses and technologies, the sector is expected to continue to attract investments and drive growth.

The strong deal activity in the Indian technology sector has significant implications for the country's economy. With the sector playing a key role in driving growth, the increased investment and deal activity are expected to have a positive impact on the economy. As the sector continues to grow and attract investments, it is likely to create new job opportunities and drive innovation, contributing to India's economic development.

Overall, the Indian technology sector's strong deal activity is a positive sign for the industry and the economy. With a focus on innovative businesses and technologies, the sector is expected to continue to attract investments and drive growth, playing a key role in shaping India's economic future.