India’s private equity market shifts to larger deals and disciplined exits: Deloitte Report

• Average deal sizes rise as investors concentrate capital into fewer, high-conviction opportunities
• Disciplined exit strategies and strategic trade sales signal a more mature PE ecosystem
• AI-driven insights, operational transformation and active ownership reshape private equity value creation
  

National, 16 March 2026: Deloitte India has released the India supplement of the Asia Pacific Private Equity Almanac, highlighting the continued evolution of India’s Private Equity (PE) market towards a more mature and disciplined investment landscape. The report highlights a growing shift towards larger deal sizes, selective capital deployment and more strategic exit planning, even as global macroeconomic conditions remain uncertain.

According to the report, while overall deal volumes moderated in 2025, investors continued to demonstrate strong confidence in India’s long-term growth story by concentrating capital into fewer but higher-value transactions. This trend reflects a more deliberate and value-oriented investment approach across the market.

Private equity investors are increasingly prioritising high-conviction opportunities. In FY2025, deal volumes declined by 8 percent, while total transaction value increased by 23 percent. This resulted in a 34 percent jump in average deal size.

Over the past decade, buyout deal value has nearly quadrupled, from INR364 billion in 2016 to INR1,380 billion in 2025, signalling a growing preference among investors for control-oriented investments and platform-building strategies.

The exit environment also reflected greater discipline across the private equity ecosystem. The number of exits declined by 53 percent in 2025, while overall exit value fell by just 15 percent, suggesting that investors are becoming more strategic about timing exits and preserving valuations rather than rushing to monetise assets.

Trade sales emerged as the most prominent exit route during the year. Exit value through strategic sales increased by 154 percent, as buyers sought profitable, well-positioned companies and greater valuation certainty in a more selective deal environment.

Sectoral capital allocation also reflected a shift towards industries with strong structural growth drivers and scalable business models. The consumer sector saw capital allocation increase by 159 percent, while the Technology, Media and Telecommunications (TMT) sector recorded a 38 percent rise in deal volume and a 91 percent increase in investment value. Financial services continued to attract significant investor interest even as deal volumes moderated.

Beyond capital deployment trends, the report notes that active operational involvement is becoming a defining feature of modern PE investing. Investors are increasingly collaborating with management teams to strengthen governance structures, improve operational performance and scale businesses more sustainably.

AI is also reshaping the investment lifecycle by helping firms identify potential investment opportunities, accelerate due diligence processes and track portfolio performance through real-time analytics, enabling faster, more data-driven decision-making.

Despite global macroeconomic headwinds, the report underscores that India remains a priority market for PE investors, supported by strong economic fundamentals, policy stability and expanding domestic capital pools. PE firms are expected to remain selective in capital deployment with a continued focus on profitable, governance-strong and scalable businesses capable of delivering long-term value. In the year ahead, the PE market is likely to be influenced by geopolitical tensions, shifting trade dynamics, macroeconomic volatility and a weakening Indian rupee, which could trigger foreign capital outflows and affect exit timelines, capital flows, valuations and investor confidence.