Private equity retreats from India's billion-dollar deals

India's PE market has split in two: record deal volume but collapsing values as sponsors balk at seller prices. Q1 2026 saw 415 PE deals worth $9.1 billion, down 34% in value despite near-record transaction count, as Grant Thornton data shows. Only two billion-dollar deals closed versus seven in Q4 2025. Average deal size crashed to $21.8 million from $36.3 million as firms chase mid-market targets over growth-stage unicorns. IPO exits fell 78% in value, removing the liquidity premium that justified lofty entry multiples.