New Delhi: India’s technology sector recorded 80 deals worth $2.5 billion in the second quarter of 2026, with deal volumes rising 18 per cent quarter on quarter to their highest level since Q1 2025, a report said on Friday.
The report from Grant Thornton Bharat said that deal values eased 35 per cent due to the absence of the mega outbound acquisitions that boosted Q1 2026.
Technology deal volumes hit a five quarter high, driven by broader participation across M&A and private equity with acquisitions increasingly focused on AI, cloud, cybersecurity and digital engineering capabilities.
The report added that start up M&A recorded its strongest activity in six quarters signalling growing strategic interest in acquiring innovation-led businesses.
Investor interest continued to be driven by AI, enterprise technology and digital infrastructure, with capital increasingly directed towards businesses demonstrating strong fundamentals and long-term growth potential.
“The five-quarter high in deal volumes reflects a more balanced technology deal market, where activity is increasingly driven by strategic intent rather than a few marquee transactions,” said Raja Lahiri, Partner and Technology Industry Leader, Grant Thornton Bharat.
“We expect this disciplined approach to support sustained deal activity in the coming quarters,” he added.
M&A activity strengthened, with 28 deals worth $996 million, up 33 per cent in volume quarter on quarter, while PE/VC activity remained robust at 52 deals totalling $1.5 billion.
Public market activity remained muted, marking the first quarter since Q2 2023, with no IPO or QIP issuances.
Despite softer capital market activity, companies with strong fundamentals, proven profitability and clear earnings visibility continued to attract investor interest through private fundraising avenues.
(IANS)
