Major M&A and Corporate Restructuring Trends in India (December 2025 – January 2026)
India’s Mergers and Acquisitions (M&A) landscape during December 2025 and January 2026 highlights a clear shift toward portfolio realignment, vertical integration, governance-led consolidation, and capital structure simplification. From energy and cement to technology, agri-inputs and insurance, companies are increasingly using M&A, demergers, and group restructurings as strategic tools to sharpen focus and unlock long-term value.
Below are some of the most significant transactions shaping this phase of corporate India.
- GE Power India Demerges Durgapur Unit to JSW Energy: Backward Integration in Action
GE Power India Limited approved the demerger of its Durgapur boiler manufacturing facility into JSW Energy Limited, reflecting a classic case of strategic realignment through M&A.
Key highlights:
- The Durgapur unit contributes ~5% of GE Power India’s FY25 turnover (₹53 crore) but carries a negative net worth of ₹20 crore
- JSW Energy will issue 10 shares for every 139 GE Power India shares, resulting in just 0.28% dilution
- The facility includes ~661 acres of land, with ~234 acres identified as surplus for future monetisation
- Transaction is tax neutral, with a fallback option of slump sale if demerger fails
Strategic rationale:
- GE Power India sharpens focus on its higher-margin services and solutions business
- JSW Energy achieves backward integration, gaining in-house boiler manufacturing capabilities critical for its thermal expansion plans
Strategic takeaway:
This transaction underlines how M&A can be used to secure supply chains and execution certainty, especially in infrastructure-heavy sectors where equipment availability can directly impact project timelines and PPA obligations.
- Jubilant Group’s Agri Demerger: Separating Cyclicality from Core Growth
Jubilant Agri and Consumer Products Limited announced the demerger of its Agri business into Jubilant Agri Solutions Limited, creating a focused, separately listed agri-inputs company.
Key highlights:
- Agri business generated ₹458 crore in FY25, ~30% of standalone turnover
- Resulting company will have a mirror shareholding structure
- Demerger enables independent fundraising, partnerships, and strategic flexibility
- Several unique scheme clauses relating to borrowing limits, ESOPs and regulatory exemptions
Strategic rationale:
- Agri business has different risk, regulatory and capital dynamics compared to polymers and adhesives
- Separation enables cleaner valuation frameworks for both businesses
- Parent company can redeploy capital into margin-accretive segments
Strategic takeaway:
Demerger structures like this are increasingly being used to unlock value by aligning capital and management focus with business-specific growth cycles, rather than forcing disparate businesses into a single balance sheet.
- Dollar Industries Group Consolidation: Governance-Led M&A
Dollar Industries approved a composite scheme involving:
- Demerger of hosiery operations from Dindayal Texpro into Dollar Industries
- Merger of eight promoter-owned entities, including real estate and brand-holding companies
Key highlights:
- No major operating business consolidation; transaction is EBITDA neutral
- Estimated ₹4.5–5 crore annual PAT uplift from savings in rent, royalty and compliance
- Market value of consolidated properties exceeds ₹100 crore
- Creation of a promoter trust to hold majority promoter stake
Strategic rationale:
- Full ownership of the “Dollar” brand by the listed entity
- Significant reduction in related-party transactions
- Improved governance, transparency and succession planning
Strategic takeaway:
This transaction shows how M&A and group restructuring are increasingly being driven by governance, institutionalisation and investor confidence, not just operational synergies.
- Coforge Acquires Encora: AI-Led Scale Through All-Stock M&A
Coforge announced the acquisition of Encora Group in an all-stock deal valued at ~₹17,000 crore, creating an estimated US$2.5 billion technology services platform.
Key highlights:
- All-stock share swap; no immediate cash outflow
- Encora brings an AI-native engineering platform (AIVA™)
- FY26E Encora revenue: US$600 million, EBITDA margin ~19%
- PE-backed transaction with Advent International and Warburg Pincus exiting partially
Strategic rationale:
- Accelerates Coforge’s AI-led engineering capabilities
- Immediate scale in Hi-Tech and Healthcare verticals
- Strengthens near-shore delivery presence in LATAM
- Sellers rolling equity into Coforge signals confidence in long-term value creation
Strategic takeaway:
This deal reflects a growing trend of Services-as-Software M&A, where technology platforms and AI capabilities are becoming core valuation drivers in the IT services sector.
- ACC-Ambuja Merger: Adani’s “One Cement” Strategy Takes Shape
Ambuja Cements approved the merger of its subsidiary ACC Limited, consolidating cement operations under a single platform.
Key highlights:
- Share-swap transaction; no cash consideration
- Promoter stake reduces, public float increases
- Integration supported by MMDR Amendment Act, 2021
- Target capacity: 140 MTPA by 2028
Strategic rationale:
- Elimination of duplicated costs and corporate layers
- Improved logistics efficiency and pricing power
- Unified capital allocation and faster decision-making
Strategic takeaway:
This merger illustrates how regulatory reforms can unlock industry-wide consolidation, fundamentally reshaping competitive dynamics and cost structures.
