DBT Bureau
Pune, 25 Nov 2025
Phoenix Mills Ltd is India’s leading retail mall developer and operator. It is the pioneer of retail-led, mixed-use developments, with completed development of over 20 million sq ft spanning retail, hospitality, commercial and residential asset classes.
- In Q2FY26, consolidated revenue increased 21.5% YoY to Rs. 1,115cr, driven by strong retail momentum, robust residential sales, improved office leasing and steady hotel income.
- Revenue from property and related services rose 9.7% YoY to Rs. 797cr, driven by 10% YoY rental increase and 14% YoY rise in consumption.
- Revenue from the residential business surged 263.4% YoY to Rs. 175cr, led by Rs.139cr sales and Rs. 116cr collection at Bengaluru luxury projects, One Bangalore West and Kessaku.
- Retail sales reached Rs. 3,750cr, up 14% YoY, driven by strong growth at the Phoenix Palladium (+13% YoY), Phoenix Mall of Asia (+78% YoY) and Phoenix Mall of Millennium (+27% YoY).
- EBITDA increased 28.8% YoY to Rs. 667cr. EBITDA margin expanded 340bps YoY to 59.8%, driven by strong growth in revenue.
Outlook & Valuation
According to the report, Phoenix Mills delivered a strong performance in Q2FY26, supported by resilient retail consumption, improving office occupancy levels, and robust residential sales traction. The analysts noted that the company’s strategic push toward experiential retail—highlighted by concepts like Gourmet Village—along with expansion into new markets, is expected to enhance footfalls and strengthen brand visibility. The office portfolio is seeing solid leasing momentum, while hospitality assets continue to benefit from a steady demand recovery. The report further highlights Phoenix Mills’ continued focus on premiumisation, asset efficiency, and disciplined capital deployment, which is expected to drive long-term growth and value creation. Based on these factors, the brokerage upgraded the stock from HOLD to BUY, assigning a revised target price of ₹1,996, valuing the company at 5.4x FY27E adjusted BVPS.
Key Concall Highlights
- Retail rental income grew 10% YoY to Rs. 527cr in Q2FY26, driven by higher rentals at Phoenix Palladium, Mumbai (up 14% YoY), Palladium Ahmedabad (up 14% YoY) and Phenix Mall of Asia, Bengaluru (up 30% YoY).
- Phoenix aims to deliver 1-2 million square feet of retail annually beyond 2030, supported by continuous land acquisition and mixed-use asset expansion plans.
- A major milestone during the quarter was the launch of Gourmet Village at Phoenix Palladium, a two level dining and entertainment hub featuring 19 outlets, strategically enhancing experiential retail and footfall engagement.
- Phoenix expects normalised performance in Pune and Bengaluru malls by March 2026, with over 90% trading occupancy post re-leasing and fit-out completion.
- The management reaffirmed a peak leverage ceiling of 2x EBITDA, only temporarily, ensuring disciplined capital allocation and prudent debt management through internal accruals.
- The company expects cost of debt to remain near 7.7%, supported by low risk LRD (lease rental discounting) funding and strong lender relationship after CPP transaction.
