India Inc goes global: Outbound M&A roars back in 2025

India’s M&A landscape was dominated by inbound deals in 2025, but a quieter, emerging shift this year has been Indian companies increasingly looking outward. Overseas acquisitions accounted for over one-fourth (25.4%) of the total deal market in 2025 till December 15, 2025. It was just 10% of the total deal value in 2023, steadily rising to 19.6% in 2024.

“Indian companies saw a clear advantage in scaling up inorganically by accessing new markets, technologies, and products. A major driver was also the valuation arbitrage, with Indian firms trading at significantly higher valuations than many of the overseas companies they acquire,” said Bhavesh Shah, MD & Head of Investment Banking at Equirus Capital. “Outbound acquisitions today are driven by strategic necessity as much as tactical opportunism—faster time‑to‑market. Building organically cannot match the pace at which global industries and global economic paradigm are transforming,” said Ramakrishnan Kalyanaraman, Senior Managing Director-Strategic Relationships, Spark Capital.

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Shift to Global Expansion

Coforge’s acquisition of US-based digital engineering firm Encora in an all-stock transaction valued at $2.35 billion is a great example of Indian companies stepping up their cross-border acquisitions for a very clear reason: digital transformation has become the new battleground. Instead of building capabilities from scratch, firms are buying niche global players that already sit deep within clients’ digital journeys—giving them instant access to technology, talent, and end customers. “If I have the cash and the scale, acquiring a specialised firm becomes the fastest way to future‑proof my business—whether that means new markets, new capabilities, or simply staying ahead of the automation curve,” Kalyanaraman added.

Last week, Lenskart Solutions fully owned Singapore arm, Lenskart Solutions Pte, announced an all-cash deal in a South Korea-based startup called iiNeer. This move from Lenskart is looking beyond retail and focusing more on the technology behind making lenses.

“For the first time in decades, Indian companies are approaching outbound M&A not as opportunistic buyers, but as confident global players. The world has begun to take Indian corporates seriously—and that fundamentally changes the negotiation table,” said a senior investment banker with a domestic bank

The momentum was visible in the marquee outbound transaction, Tata Motors’ $4.5 billion acquisition of Iveco Group NV, which also stands out as the year’s largest outbound deal and highlights the company’s ambition to strengthen its global commercial vehicle portfolio. Until 2006-2007, Iveco Group, along with the Hinduja group, held a controlling stake in Ashok Leyland and Ennore Foundries.

Similarly, Adani Ports & Special Economic Zone followed with its $2 billion purchase of Abbot Point Port Holdings Pte, reinforcing its strategy of building a global ports network. “These transactions reflect a broader trend of Indian conglomerates deploying capital abroad with greater confidence and clarity of purpose,” said a CEO of a domestic bank. Agreeing with him, Shah of Equirus added that “corporate India today is far better equipped to navigate the cultural complexities that once hindered cross‑border integrations.”

Across Europe and parts of the US, we are seeing high‑quality businesses come to market—family-owned firms facing succession gaps, sponsor-owned assets nearing exit cycles, and industrial companies squeezed by geopolitical shocks. Indian buyers are stepping into a window of opportunity that didn’t exist ten years ago.

The year 2024 had already laid the groundwork for this shift. Bharti Enterprises’ $4.1 billion acquisition of BT Group PLC in 2024 marked one of the most significant outbound bets by an Indian company in recent years. While outbound activity remained smaller than domestic and inbound flows, such large-ticket deals signalled that Indian firms were ready to compete for global assets.

Engines of 2026

The jump from $18.8 billion in outbound deal value in 2024 to $24.8 billion year-to-date (YTD) in 2025 highlights the structural trend.

The surge in IPO fundraising over the last two years has armed Indian corporates with unprecedented dry powder, and that capital is now looking outward. As time‑to‑market becomes critical and technology cycles shorten, companies are realising that buying capabilities overseas is far more efficient than building them from scratch. A decade of deleveraging has armed Indian corporates with balance sheets strong enough to pursue scale. “When you combine rich domestic valuations and relatively cheaper global assets, outbound M&A becomes a compelling arbitrage story which is here to stay as India Inc enters 2026 with the gravitas, confidence and the currency to accelerate,” said Kalyanaraman.

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