Personal care, nutrition and digital-first brands draw capital as total deal value falls to $981 million. PE and VC drive 80% of volumes.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
India's consumer sector logged 97 deals worth $981 million in the June quarter, a 34% drop in volume and a 33% slide in value from the previous three months, according to a Grant Thornton Bharat report. The numbers reflect a more selective investment climate, though strategic acquisitions in personal care, nutrition and digital-first consumer brands kept drawing capital.
Excluding IPOs and qualified institutional placements, the sector recorded 95 M&A and private equity or venture capital transactions valued at $918 million. Deal values remained above Q2 2025 levels, pointing to continued confidence in India's long-term consumption story, Grant Thornton said.
Naveen Malpani, partner and consumer industry leader at Grant Thornton Bharat, described a structural shift underway. “Capital is increasingly flowing towards specialised, high-growth categories rather than traditional consumption themes,” he said. Businesses in wellness, premium personal care, nutrition and digital-first consumer brands are attracting disproportionate interest as changing preferences create new growth opportunities, he added. Companies are also using acquisitions more strategically to expand into adjacent categories and strengthen portfolios.
The quarter's top M&A deal was Emami Ltd's purchase of a 60% stake in IncNut Digital Pvt Ltd, which owns Vedix and Skinkraft, for $34 million. With no large strategic acquisitions, PE and VC activity drove consumer dealmaking: 75 deals worth $734 million, contributing nearly 80% of both total volumes and values. The biggest PE transaction was Advent International's $150 million investment in Iscon Balaji Foods Ltd, signaling sustained confidence in India's branded food processing sector.
Public market activity was subdued. One IPO raised $47 million and one QIP raised $16 million.
Retail tech led M&A with nine deals worth $89 million. Personal care recorded four deals worth $52 million. FMCG, textiles and apparel, and e-commerce together accounted for about 44% of PE and VC deal volumes. Textiles and apparel ($178 million), food processing ($172 million) and FMCG ($145 million) attracted the highest PE and VC investment values during the quarter, Grant Thornton said.
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