3 weeks ago
Stronger Balance Sheets Push India Inc Toward More Acquisitions
Indian companies are buying other companies more often to grow faster.
They want to become larger, enter new markets and gain technology or skilled workers.
Crisil Ratings studied about 600 large deals.
The number of deals has more than doubled since FY17.
Companies are financially stronger than they were a decade ago.
They are also using less debt to pay for acquisitions.
Most companies kept or improved their credit ratings after buying other businesses.
About 60% reduced their debt as planned within two years.
However, combining companies successfully can be difficult, especially when regulators or international operations are involved.
India Inc’s annual M&A deal volumes have more than doubled since FY17.
Crisil Ratings analyzed about 600 deals valued above ₹500 crore.
Companies mainly pursued acquisitions to consolidate, expand markets and gain capabilities.
Debt funded 29% of deals in FY24-FY26, down from 46% in FY09-FY11.
Integration problems, regulatory delays and cross-border issues remained key execution risks.
- Who
- Indian companies, as assessed by Crisil Ratings.
- What
- Companies are increasingly using mergers and acquisitions to accelerate growth, expand markets and acquire capabilities.
- Where
- India Inc, including domestic and cross-border acquisition activity.
- When
- The analysis was published on August 26, 2026, and covers trends through FY26.
- Why
- Stronger corporate balance sheets are giving companies more flexibility to pursue acquisitions.
Key facts
- Deals analyzed
- About 600 deals valued above ₹500 crore
- Deal-volume trend
- Annual deal volumes more than doubled since FY17
- Median net debt-to-Ebitda
- Estimated at 1.3 times in FY26, compared with 2.4 times in FY17
- Debt-funded deal share
- 29% in FY24-FY26, compared with 46% in FY09-FY11
- Credit outcomes
- About three-fourths of acquirers had ratings reaffirmed or upgraded
- Deleveraging
- About 60% deleveraged on or ahead of plan within two years
- Main execution risks
- Integration challenges, regulatory delays and cross-border execution issues
Quotes
Subodh Rai
Managing Director at Crisil Ratings
“Indian corporates are increasingly using M&As to accelerate growth, expand market access and acquire capabilities that would take years to build organically. This is reflected in annual deal volumes, which have more than doubled since fiscal 2017.”
thehindubusinessline.com
“Our review of 100 large debt-funded deals shows two in three deals broadly met our expectations.”
thehindubusinessline.com
Sources
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