Key Takeaways
- • PE/VC investment in India rose 46% year-on-year to $17.1 billion across 348 deals in Q3 2026, according to an EY-IVCA report.
- • Investment value jumped 124% from the prior quarter's $7.6 billion, though deal count was 9% lower than the 384 deals a year earlier.
- • Infrastructure led with $7.2 billion, followed by healthcare at $3.1 billion and real estate at $1.4 billion, together accounting for 69% of quarterly PE/VC activity.
- • Buyout deals were the largest share by deal type at $5.1 billion, up 419% from Q3 2025, while startup investment reached $4.8 billion, up 55%.
- • The report forecasts PE/VC investors will stay cautious and selective, prioritising resilience of future profitability and return on capital amid inflationary pressure and high crude prices.
Summary
Private equity and venture capital investment in India rose 46 per cent year-on-year to $17.1 billion across 348 deals in the third quarter of 2026, driven by surging activity in infrastructure and healthcare, according to a report from EY-IVCA released on Friday. Investment value rose 124 per cent from the previous quarter's $7.6 billion. Deal volume, however, was 9 per cent lower than the 384 deals recorded a year earlier, though it was 44 per cent higher quarter-on-quarter.
September was the strongest month of 2026 so far, attracting $7 billion in investments and marking the highest monthly investment value since May 2024. Infrastructure was the top sector at $7.2 billion, followed by healthcare at $3.1 billion and real estate at $1.4 billion. Those three sectors together accounted for 69 per cent of overall PE/VC investment in the quarter.
By deal type, buyouts accounted for the largest share at $5.1 billion, a 419 per cent increase in value compared with Q3 2025. Startup investments ranked second at $4.8 billion, up 55 per cent from $3.1 billion a year earlier.
The report noted that Indian capital markets have largely consolidated in recent weeks, with the upcoming earnings season closely watched amid inflationary pressures. It cited the recent repo rate hike by the Reserve Bank of India as a proactive response as high crude oil prices persist. The report expects PE/VC investors to remain cautious and selective, prioritising resilience of future profitability and return on capital.
The report also noted that 290 PE/VC-backed IPOs have been recorded in India since 2016, with about 75 per cent (217 IPOs) occurring in the last five years.
September was the strongest month of 2026 so far, attracting $7 billion in investments and marking the highest monthly investment value since May 2024. Infrastructure was the top sector at $7.2 billion, followed by healthcare at $3.1 billion and real estate at $1.4 billion. Those three sectors together accounted for 69 per cent of overall PE/VC investment in the quarter.
By deal type, buyouts accounted for the largest share at $5.1 billion, a 419 per cent increase in value compared with Q3 2025. Startup investments ranked second at $4.8 billion, up 55 per cent from $3.1 billion a year earlier.
The report noted that Indian capital markets have largely consolidated in recent weeks, with the upcoming earnings season closely watched amid inflationary pressures. It cited the recent repo rate hike by the Reserve Bank of India as a proactive response as high crude oil prices persist. The report expects PE/VC investors to remain cautious and selective, prioritising resilience of future profitability and return on capital.
The report also noted that 290 PE/VC-backed IPOs have been recorded in India since 2016, with about 75 per cent (217 IPOs) occurring in the last five years.
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