M&A Deals: India’s Infra Sector Sees Momentum

India’s infrastructure sector is shifting from standalone projects to large, scalable platforms, supported by sustained government capex, policy stability and long-term financing.  The emphasis on sustainability will further influence M&A strategies, leading to a rise in green infrastructure projects. Additionally, consolidation among smaller firms may occur as competition intensifies, resulting in a market with fewer but larger players. 

Recently, Adani Group and Jabil Inc, announced the intent to form a strategic alliance to establish a world-class, vertically integrated AI and data center infrastructure manufacturing platform in India.

Gautam Adani, Chairman, Adani Group, said, “Nations that master the symmetry between energy and compute will shape the next decade. India is uniquely positioned to lead. Our alliance with Jabil represents a decisive step in building India’s complete AI infrastructure stack — from green power generation to world-class hardware manufacturing.”

Developers are adopting greener construction, AI, analytics and modular technologies to enhance efficiency, safety and long-term asset performance.  The acceleration of green hydrogen construction and digital infrastructure investment is being catalyzed by a landmark shift in energy economics.

Since the 2021 Union Budget, infrastructure spending has steadily increased, with FY26 allocation at INR11.21 lakh crore (~3.1% of GDP), reinforcing long-term growth, EY said in its M&A report in 2026.

“The landscape is set for significant transformation, aligning with global trends and strategic growth opportunities,” Partner, Infrastructure, Investment Banking, EY India. 

According to the EY report, roads remain central, with INR2.7 lakh crore allocated to MoRTH in FY26 and NHAI consistently delivering 4,200– 6,500 km of highways annually. India is developing 27 expressways spanning ~9,860 km with ~INR4.2 lakh crore investment, alongside major state-led connectivity projects.  The MMLP program targets 35 multimodal logistics parks, complemented by port connectivity initiatives to improve freight efficiency and reduce logistics costs.  

Evolved PPP framework, improved concession structures and policy clarity under the Viksit Bharat 2047 vision have strengthened private participation across roads, ports, renewables and logistics 

Recently, Lloyds Engineering Works Limited (LEWL), one of India’s engineering and EPC companies, announced the acquisition of a controlling stake in Steel Infra Solutions Company Limited (SISCOL) at an equity valuation of around INR 1,220 crore. This transaction is expected to unlock significant operational synergies across procurement, project management, engineering, manufacturing planning and corporate functions.

SISCOL is engaged in heavy steel fabrication and infrastructure solutions, serving customers across the energy, infrastructure and industrial sectors.

“Over the last few years, we have focused on expanding our presence across engineering, manufacturing, infrastructure, and emerging sectors through strategic investments and acquisitions. Each step has been guided by the simple objective of creating a future-ready engineering enterprise capable of delivering greater value to our customers, partners, and stakeholders,” said Krishna Gupta, executive director, Lloyds Engineering. 

As part of India’s deal activity in 2025, the infrastructure sector witnessed a decline in volume but recorded strong value expansion, registering 35 per cent growth supported by investors’ push to secure strategic and long-term positions in segments exposed to global manufacturing shifts and data-center build-out.

Infrastructure-led acquisitions in India are accelerating in 2026, driven by a record capital expenditure push and a massive shift towards Artificial Intelligence (AI) compute, data centers, and renewable energy. Major conglomerates and global private equity firms are actively consolidating assets to dominate these high-growth sectors.