The report from EY-IVCA said investment value rose 124 per cent from the previous quarter’s $7.6 billion, although deal volume was 9 per cent lower than the 384 deals recorded a year earlier.

However, the deal volume was 44 per cent higher quarter-on-quarter, it added.

Meanwhile, September emerged as the strongest month of 2026 so far, attracting $7 billion of investments and marking the highest monthly investment value since May 2024.

“While the Indian capital markets have largely consolidated over the past few weeks, the upcoming quarterly earnings season is being closely watched given prevailing inflationary pressures. The recent repo rate hike by the Reserve Bank of India reflects a proactive approach as high crude oil prices persist,” the report said.

It forecasted PE/VC investors to remain cautious and selective and prioritise resilience of future profitability and return on capital.

Infrastructure emerged as the top sector, attracting $7.2 billion, followed by healthcare at $3.1 billion and real estate at $1.4 billion. Together, the three sectors accounted for 69 per cent of overall PE/VC investments during the quarter.

Buyout investments accounted for the largest share of PE/VC activity in the quarter by deal type, with $5.1 billion deployed, a 419 per cent increase in value compared to Q3 2025.

In addition, start-up investments ranked second with an investment of $4.8 billion, an increase of 55 per cent from $3.1 billion in Q3 2025.

The Indian PE/VC-backed IPO market has undergone significant evolution over the past decade.

A total of 290 PE/VC-backed IPOs have been recorded since 2016, with nearly 75 per cent of these listings (217 IPOs) occurring in the last five years alone.