New Delhi, Oct 10 : India recorded 688 deals worth $39.9 billion in the third quarter this year (Q3 2025), marking a strong uptick in overall deal activity, a report said on Friday.

Deal volumes reached their highest level since Q1 2022, while quarterly values hit a year-to-date peak, driven by a sharp increase in merger and acquisition (M&A) and record capital market issuances.

Meanwhile, deal values rose by 30 per cent year-on-year, while volumes increased by 8 per cent.

Mergers and acquisitions (M&A) and private equity (PE) together accounted for 629 deals valued at $28.7 billion, reflecting a 14 per cent increase in volume and more than double the value compared to the previous quarter, according to a Grant Thornton Bharat report.

The public market activity during the quarter reached new highs, with 34 IPOs and 25 QIPs raising $5.6 billion each, the highest quarterly performance of the year in both volume and value.

The surge was driven by companies tapping markets for growth capital and debt reduction, led by HDB Financial Services' $1.5 billion IPO, Knowledge Realty Trust REIT's $558 million issue, and NSDL's $466 million listing.

M&A activity has also strengthened significantly in the quarter, with 263 transactions worth $22 billion, reflecting a 34 per cent rise in volumes and a 311 per cent jump in values over Q2 2025.

The surge was driven by six billion-dollar deals worth $15.3 billion, accounting for 70 per cent of total M&A value.

According to the report, domestic activity remained strong with a record 191 transactions.

"Q3 2025 marked a strong growth for India's deal landscape, with M&A and IPO activity reaching record volumes and values recovering from a subdued Q2. Robust cross-border and domestic transactions, alongside early-stage investments in the consumer and technology sectors, show continued investor confidence," Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat, said.

Meanwhile, PE activity remained stable, recording 366 deals worth $6.7 billion.

While volumes increased slightly by 3 per cent quarter-on-quarter, values dipped 10 per cent, the report highlighted.

/IANS