PE Investment in India to Stay Steady in Q3 2026: KPMG
Private equity (PE) investment in India is projected to remain steady in the third quarter of 2026, according to a report by KPMG. The report highlights that despite global economic uncertainties, India's PE landscape is poised for stability, driven by strong domestic fundamentals and investor confidence. This comes as a relief to market participants who had anticipated a slowdown following a volatile first half of the year.
The KPMG analysis indicates that deal activity in sectors such as technology, healthcare, and financial services will continue to attract significant capital. In the first half of 2026, PE investments in India totaled approximately $12.3 billion, a slight decline from the $13.1 billion recorded in the same period last year. However, the report notes that the second half is expected to pick up, with Q3 alone projected to see around $6.5 billion in deals, matching the pace of Q2 2026.
“The resilience of India’s PE market is evident, with investors focusing on long-term growth sectors. We anticipate a steady pipeline of mid-market deals and continued interest from global funds,” said a KPMG spokesperson.
The report also underscores the growing role of domestic investors, who accounted for 34% of total PE investments in H1 2026, up from 28% a year earlier. This shift is attributed to the increasing maturity of Indian institutional investors and favorable regulatory changes. Additionally, exit activity has remained robust, with 45 exits recorded in H1 2026, generating $8.2 billion in proceeds, compared to 38 exits worth $7.5 billion in H1 2025.
| Metric | H1 2025 | H1 2026 |
|---|---|---|
| Total PE Investment (USD billion) | 13.1 | 12.3 |
| Number of Deals | 312 | 298 |
| Domestic Investor Share (%) | 28 | 34 |
| Exits (Count) | 38 | 45 |
| Exit Proceeds (USD billion) | 7.5 | 8.2 |
Looking ahead, the KPMG report says that Q3 2026 will see steady PE activity, with a focus on sectors like renewable energy, fintech, and e-commerce. The report also highlights that the average deal size is expected to increase, as investors prefer larger, more strategic investments. However, challenges remain, including valuation gaps and regulatory hurdles, which could temper the pace of deal-making.
Analysts say that the steady PE investment outlook is a positive sign for the Indian economy, as it indicates sustained investor confidence in the country's growth story. With the government's continued push for infrastructure development and digitalization, the PE market is likely to remain vibrant. For investors and businesses, staying informed about these trends is crucial. For more insights and updates on market trends, visit MarketToMoney.