Indian Firms Step Up Overseas M&A: BCG

Indian companies are increasing their focus on overseas acquisitions as outbound mergers and acquisitions (M&A) become an important part of corporate expansion strategies in 2026.

According to Boston Consulting Group (BCG), the value of outbound M&A by Indian strategic buyers increased by $3.8 billion during the first seven months of 2026 compared with the same period last year.

The increase came even as India's overall M&A market recorded fewer transactions. BCG said Indian M&A deal volume declined by roughly 20% in the first seven months of 2026, while overall deal value remained relatively stable, falling only about 2%. The outbound segment moved in the opposite direction, helping offset declines in domestic and inbound transactions.

Financial Express reported on September 22 that outbound deal value surged 76% to $8.8 billion, although the number of outbound transactions declined 19% to 92.

By comparison, inbound M&A declined 58% to $2.7 billion, while domestic deal value fell 14% to $10.1 billion.

BCG's analysis identified three major reasons behind the increase in overseas acquisitions. Indian companies are using M&A to internationalize their supply chains, gain access to established-market customers and order books, and acquire specialized capabilities that may not be readily available in India.

AI-enabled IT services have emerged as one of the important areas for capability-led acquisitions.

“The Indian outbound story isn’t just the large conglomerates anymore. We are seeing mid-sized companies buy capabilities and market access abroad and that is a healthy sign on confidence,” said Dhruv Shah, Managing Director & Partner, BCG.

Several transactions illustrate this shift. BCG highlighted Sun Pharmaceutical's acquisition of Organon in biopharma, LTM's purchase of Randstad, and Mphasis's acquisition of Theory and Practice Business Intelligence.

In technology services, Coforge's acquisition of Encora and Infosys's deals involving Versent and Stratus were cited as examples of Indian companies acquiring capabilities outside the country.

The broader M&A market is also becoming more concentrated around larger transactions. BCG said deals worth more than $1 billion accounted for a larger share of India's total M&A value in 2026, while transactions above $500 million have represented about 59% of total transaction value since 2024.

The decline in smaller transactions suggests that companies are becoming more selective about where they deploy capital. BCG said valuation gaps, geopolitical uncertainty, tariffs and currency depreciation are among the factors influencing deal activity.

“Volumes have fallen while the market is rewarding those that still transact with conviction. This suggests boardrooms should keep their M&A engines always on and reconsider how and when they choose to tap these markets,” said Kanchan Samtani, Managing Director & Senior Partner and India Leader, Principal Investors and Private Equity & APAC Leader, Corporate Finance & Strategy, BCG.

BCG's findings indicate that overseas M&A is becoming a significant avenue for Indian companies seeking international growth, market access and specialized capabilities. The shift also reflects a broader move toward fewer but larger and more strategically focused transactions in India's M&A market.