India’s private credit market recorded a sharp decline in the first half of 2026, with total deployments falling to around $3.5 billion across 102 deals, compared with $9 billion during the same period last year.

The 61% year-on-year decline was largely influenced by an unusually high base in H1 2025, when a $3.1 billion refinancing transaction by the Shapoorji Group significantly boosted overall private credit volumes.

Deal Activity Remains Stable

Despite the steep fall in total value, the number of transactions increased. Private credit deals rose from 87 in H2 2025 to 102 in H1 2026, indicating that the market remains active even as individual deal values have moderated.

H1 2026 deployment was also broadly in line with the $3.4 billion recorded in H2 2025, suggesting the market may be moving toward a more normalised level after the exceptional activity seen last year.

Domestic Funds Take the Lead

One of the biggest changes has been the growing influence of Indian investors. Domestic funds accounted for 74% of total private credit deal value and nearly 79% of deal volume during H1 2026.

By comparison, global funds accounted for only 26% of deal value, down from 36% in H2 2025 and 68% in H1 2025.

The shift highlights the increasing role of local capital in financing Indian companies.

Real Estate Remains the Top Sector

Real estate continued to attract the largest share of private credit investment, accounting for around 35% of total deal value in H1 2026. Healthcare and food & beverage were the next major sectors.

Food and beverage saw particularly strong growth, with its share of total deal value rising from 1% in H2 2025 to 12% in H1 2026.

Major Deals During the Period

Some of the notable transactions included:

  • Kalpataru: $176 million for refinancing

  • HyFun Foods: $156 million for refinancing and working capital

  • GMR Group: $150 million for group companies

  • Manipal Group: $124 million in healthcare

  • Inspira Group’s Lenexis Foodworks: $113 million in food and beverage

Market Enters a New Phase

The latest data suggests India’s private credit market is moving away from the exceptionally high deployment levels seen in H1 2025. At the same time, the rising contribution of domestic investors indicates that the sector is becoming more established within India’s broader financing ecosystem.