Moreover, the F&B sector’s share of total deal value climbed from 1 per cent in the second half of 2025 to 12 per cent, making it the third-largest sector for such investments, said the EY Private Credit Report H1 2026.
“Food & beverage emerged as a standout sector in India’s private credit market during H1 2026, with the sector’s share of total deal value rising from 1 per cent in H2 2025 to 12 per cent in H1 2026, the largest increase in sectoral share among all industries covered in the report,” it said.
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This made F&B the third-largest sector for private credit investments in India during the period, it added.
The momentum was supported by marquee transactions, including HyFun Foods Group’s USD 156 million refinancing and working capital raise and Lenexis Foodworks’ USD 113 million acquisition financing transaction.
“The scale of these deals points to increasing demand for capital to support expansion, acquisitions and operational growth across food-focused businesses,” it said.The sector’s rapid rise suggests private credit investors are increasingly looking beyond traditional sectors to businesses benefiting from India’s growing consumer spending and premiumisation trends. It also signals the emergence of consumer-led sectors as a meaningful private credit opportunity set.
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Dinkar Venkatasubramanian, Partner and National Leader – Debt and Special Situations, EY India, said, “India’s private credit market is entering a new phase of evolution. What began as a niche source of alternative capital has become an important pillar of the country’s financing ecosystem”.
“We are witnessing the emergence of new opportunities across acquisition financing, growth capital, refinancing, special situations and value creation-led transactions. The increasing participation of domestic capital, continued regulatory strengthening and growing acceptance of private credit among borrowers are all contributing to a deeper and more resilient market,” he said.