Key Points

Investors preferred quality and scale, reducing deal volume 12 per cent to 1,285 transactions. Despite fewer transactions, the relative stability suggests a trend towards fewer, high-value strategic bets, the report from Ernst & Young (EY) said.

In the first half of 2025, the value of deals was down 17 per cent compared to H1 2024. June was the strongest month by value at $8.4 billion, up 104 per cent from May. However, it logged 136 transactions, the lowest monthly tally in six months and a 46 per cent year-over-year drop.

“Investors are clearly moving toward fewer but more strategic bets. The rise in large ticket deals despite a drop in volume reflects a flight to quality, driven by macro concerns and a changing regulatory environment,” said Ajay Arora, Partner and National Leader, Investment Banking, EY India.

H1 2025 recorded 10 billion-dollar-plus deals, double the number seen in each half of 2024. The lack of marquee transactions suggests consolidation and strategic capital deployment, the report said.

Power sector leads Mergers and Acquisitions (M&A) with $8.5 billion in deal value. Renewable energy made up 80 per cent of the power sector's total, rising from $3.2 billion in H1 2024 to $2.8 billion in H2 2024.

India is the fourth-largest renewable energy market, attracting over $4 billion in FDI last year.

“On the back of rising demand, strong government thrust and innovative financing, India is fast-tracking its energy transition with massive renewables rollout and impressive progress in electric mobility, biofuels and green hydrogen. Global investors can invest over $1 trillion in this sector with exciting opportunities," said Srishti Ahuja, Partner, Infrastructure, Investment Banking, EY India.

- IANS