The transaction also illustrates how India’s outbound acquisition strategy has evolved. Unlike the overseas bets of the mid-2000s, Sun Pharma entered the deal with a net cash position, allowing it to fund a part of the acquisition through internal accruals while raising offshore financing for the balance. The combined company expects a pro forma net debt-to-EBITDA ratio of around 2.3 times and plans to deleverage rapidly using annual free cash flows of nearly $2.5 billion.
Instead of buying scale, companies are increasingly acquiring artificial intelligence capabilities, intellectual property, specialty drug portfolios, engineering expertise, established brands and access to developed markets.
The numbers reflect the momentum. According to Grant Thornton Bharat, Indian companies announced 162 outbound mergers and acquisitions (M&As) worth $18.2 billion in 2025. The pace has continued into this year, with 56 overseas acquisitions valued at $3.9 billion announced in the first quarter of CY2026. During the April-June quarter, outbound transactions accounted for 84% of India’s total M&A value, underlining how overseas acquisitions are driving corporate dealmaking.
Also Read: West Asia conflict adds fresh cost pressures for India Inc
Recent transactions reinforce the trend. Besides Sun Pharma’s Organon acquisition, Bharti Airtel’s $2.97-billion increase in its stake in Airtel Africa emerged as another marquee outbound transaction. Together, they reflect how Indian companies are increasingly pursuing outbound deals to expand market access, gain key technologies and products, and consolidate strategic assets overseas.
Looking beyond India for the next phase of growth
For many of India’s largest companies, overseas acquisitions are no longer about proving they can compete globally. They are about finding the next engine of growth.
“Indian companies today are in a much stronger position financially, with healthier balance sheets and better access to capital. At the same time, Indian equity markets are commanding premium valuations, allowing companies to raise capital efficiently and pursue overseas acquisitions where valuations are often more attractive,” said Bhavesh Shah, Managing Director and Head – Investment Banking at Equirus Capital.
Several listed companies have spent the past decade strengthening their balance sheets, deleveraging and generating stronger cash flows.
Also Read: India Inc. is profitable. So why isn’t it investing?
“Many companies have achieved scale domestically and are now looking overseas to add new dimensions to their business for the next phase of growth,” Shah added.
Besides stronger corporate balance sheets, global conditions have also turned favourable. Valuation corrections across technology, healthcare, industrial and consumer businesses have made overseas assets more attractive, while artificial intelligence, supply-chain realignment and geopolitical shifts are encouraging companies to acquire capabilities rather than build them from scratch.
PwC India also points to a structural shift in deal volumes. Outbound transactions accounted for 17.6% of India’s total M&A deal volume in the first half of 2026, compared with 15% a year earlier and 12.4% in H1 2024. PwC attributes the trend to stronger financial capacity, wider financing options and changing business priorities that are giving boards greater confidence to pursue overseas acquisitions.
Buying time, not just companies
If the first wave of overseas acquisitions was largely about buying scale, the latest appears to be about buying speed—acquiring capabilities that would otherwise take years and significant investment to develop internally.
“The earlier wave was largely about acquiring scale and establishing a global footprint, often through leveraged transactions. Today’s acquisitions are far more strategic, focused on acquiring capabilities, technology, brands and market access, with much greater emphasis on capital discipline and integration,” Shah said.
According to Amit Khandelwal, Managing Partner – Strategy & Transactions, EY India & Africa, the very definition of competitive advantage has changed.
“The focus has shifted because the most valuable competitive advantages today come from innovation, technology, customer access and specialised know-how, not simply operating size. Developing these capabilities organically can take years, while acquisitions provide immediate access,” he said.
The shift is already visible across sectors. IT companies are acquiring AI, cloud and digital engineering capabilities, pharmaceutical firms are targeting specialty products and regulated-market assets, while automotive and industrial companies are scouting for EV technologies, advanced engineering capabilities and electronics expertise to strengthen their global competitiveness.
From Corus to capabilities: A smarter acquisition playbook
The comparison with the previous overseas acquisition cycle is inevitable, but experts say the similarities largely end with Indian companies buying foreign businesses.
The 2005-10 wave was defined by a handful of transformational acquisitions aimed at establishing a global footprint. Tata Steel acquired Corus for about $12 billion, Hindalco bought Novelis for around $6 billion, while Tata Motors acquired Jaguar Land Rover for $2.3 billion. Those deals announced Corporate India’s arrival on the global stage but were largely driven by the pursuit of scale, manufacturing assets and international presence.
“The current cycle is much more selective and capability-led than the acquisition wave seen in the mid-2000s. The focus has shifted because the most valuable competitive advantages today come from innovation, technology, customer access and specialized know-how, not simply operating size,” said EY’s Khandelwal.
Sun Pharma’s acquisition of Organon illustrates that shift. Beyond adding scale, the deal expands Sun Pharma’s specialty medicines portfolio, strengthens its branded generics business, adds a biosimilars platform and significantly broadens its presence in women’s health across more than 140 markets.
The trend is visible across sectors. According to Grant Thornton Bharat, manufacturing and pharmaceuticals were among the most active sectors by deal volume in recent months, while telecom accounted for the highest deal value, led by Bharti Airtel’s investment in Airtel Africa.
A more disciplined acquisition strategy
Another defining difference between the two acquisition cycles is the way Indian companies are executing deals.
“Indian companies have become more cautious and selective, with greater emphasis on transaction structure, integration planning, governance rights, valuation and downside protection rather than a headline acquisition,” said Ambuj Sonal, Partner at Dentons Link Legal.
According to him, companies are now spending significantly more time on regulatory due diligence, sanctions and export-control reviews, tax structuring, intellectual property ownership and post-merger integration before signing transactions. India’s Overseas Investment Rules, Regulations and Directions, introduced in 2022, have also brought greater clarity to outbound investments, making cross-border transactions more structured than in the previous cycle.
Yet, experts say the biggest challenge begins after the deal closes.
“The biggest risk is integration. Acquisition can fail if cultures, management teams and operations are not integrated effectively. Companies also need to remain disciplined on valuations, financing and carefully manage geopolitical, regulatory and currency risks,” Shah said.
A structural shift, not a short-term cycle
Most experts believe India’s outbound acquisition story is becoming more structural than cyclical.
“Outbound M&A is increasingly becoming a strategic extension of Corporate India’s growth agenda,” said Mohit Chopra, Partner and Deals Leader at PwC India. He added that stronger balance sheets, easier access to capital, growing global ambitions and the need to operate closer to customers are likely to keep Indian companies looking overseas, although financing costs, geopolitical uncertainty and execution risks will continue to influence dealmaking.
Three decades after economic liberalisation, India’s place in the global economy is changing. If the first generation of overseas acquisitions helped Indian companies establish a global presence, the current wave is about sharpening their competitive edge. Rather than chasing size alone, companies are using acquisitions to strengthen their ability to compete across markets, technologies and business cycles.
