India Inc is increasingly turning to mergers and acquisitions to drive growth, with deal volumes more than doubling since FY17 as companies use acquisitions to build scale, enter new markets and acquire capabilities, Crisil Ratings said on Wednesday.
An analysis of around 600 deals valued above ₹500 crore found that consolidation and market expansion remained the biggest drivers of acquisitions, while companies were also using deals to acquire technology, talent and intellectual property.
The shift comes as corporate balance sheets have strengthened over the past decade. Median net debt-to-Ebitda for companies rated by Crisil stood at an estimated 1.3 times in FY26, compared with 2.4 times in FY17, giving companies greater flexibility to pursue acquisitions.
“Indian corporates are increasingly using M&As to accelerate growth, expand market access and acquire capabilities that would take years to build organically,” said Subodh Rai, Managing Director, Crisil Ratings. “This is reflected in annual deal volumes, which have more than doubled since fiscal 2017.”
The rating agency said companies had also become more prudent in funding acquisitions, with debt accounting for 29 per cent of deal funding in FY24-FY26, compared with 46 per cent in FY09-FY11.
Acquisitions have so far had limited impact on the credit profiles of most companies. Around three-fourths of acquirers saw their ratings reaffirmed or upgraded following acquisitions, while about 60 per cent deleveraged on or ahead of plan within two years.
“Our review of 100 large debt-funded deals shows two in three deals broadly met our expectations,” Rai said, adding that successful transactions expanded scale and improved profitability as synergies materialised.
However, Crisil said execution remained critical. Of the deals that fell short of expectations, integration challenges were the biggest hurdle, followed by regulatory delays and cross-border execution issues.
India Inc’s ability to create value from the next phase of dealmaking will depend on valuation discipline, prudent funding and successful integration, the rating agency said.
Published on August 26, 2026
