India’s financial services deals surge 129pc to $7.3 billion in Q3 2026

New Delhi: India’s financial services sector recorded 67 deals worth $7.3 billion in Q3 2026, with total deal value rising 129 per cent quarter-on-quarter as transaction volumes increased marginally from 65 to 67, a report said on Monday.

The value-led acceleration was driven by large-ticket mergers and acquisitions (M&A) activity and public-market issuances, including the two major initial public offerings (IPO), the report from Grant Thornton Bharat said.

Excluding IPOs and qualified institutional placements (QIP), M&A and PE/VC activity comprised 58 transactions worth $3 billion. The quarter reflected a market in which investor interest remained strong but capital deployment was increasingly selective.

While M&A values rose 54 per cent sequentially and public-market fundraising strengthened significantly, PE/VC investments declined in both volume and value.

Fintech, banking and NBFCs together accounted for approximately 67 per cent of transaction volumes, underlining continued interest in technology-enabled financial platforms and lending businesses.

“As capital becomes more selective, the ability to translate growth into sustainable returns will increasingly determine which financial services businesses attract investment,” said Vivek Iyer, Partner, Financial Services Risk Advisory and NBFC Industry Leader, Grant Thornton Bharat.

In a higher-cost environment, strong funding models, sound unit economics and regulatory resilience will matter as much as the opportunity to scale, he said.

“India’s financial ecosystem continues to offer significant headroom for growth, but the next phase will reward businesses that can grow sustainably, not just rapidly,” he added.

M&A activity recorded 23 transactions worth $2.3 billion in Q3 2026. While volumes declined 4 per cent quarter-on-quarter, deal values increased 54 per cent, driven by one major transaction.

Domestic transactions accounted for 78 per cent of volumes but only 9 per cent of deal value, while three inbound deals contributed nearly 90 per cent of M&A value.

Outbound activity moderated from seven transactions in Q2 to two in Q3. In the light of above, deal values remained undisclosed for approximately 48 per cent of M&A transactions.