Phoenix Mills (503100) Q1 25/26 earnings summary

Executive summary

• Announced acquisition of 100% stake in Island Star Mall Developers Private Limited (ISML/ISMDPL) for INR 5,449 crore, providing an exit to CPP Investments' 49% stake, subject to approvals.

• Transaction structured in four tranches over 36 months, leveraging ISML's strong cash flows and additional debt headroom.

• ISML portfolio has grown 6.6x in eight years, now comprising 6.6 million sq ft of retail and office assets, with further expansion planned to 13 million sq ft by 2030.

• Consolidated revenue from operations reached Rs. 953 crore in Q1 FY26, up 5% year-over-year.

• Net profit after tax and minority interest increased 4% to Rs. 241 crore.

Financial highlights

• Q1 FY 2026 retail consumption grew 12% year-on-year, with strong performance across key malls.

• Retail rental income for the quarter was INR 506 crore, up 4% year-on-year, despite temporary occupancy dips due to planned repositioning.

• Office segment revenue rose 11% to INR 130 crore, with EBITDA up 19% to INR 58 crore.

• Group EBITDA for the quarter reached INR 544 crore, a 6% increase; group debt stood at INR 4,435 crore, with cost of debt at 7.92%.

• Residential gross sales surged to Rs. 168 crore, with average sales price of Rs. 27,000/sq ft.

Outlook and guidance

• Management targets 90% leasing in completed office assets by 2026, up from current 6%.

• EBITDA expected to grow from INR 617 crore in FY 2025 through organic growth, premiumization, and expansion projects.

• CapEx guidance of INR 1,200–1,300 crore at group level over the next 12 months; ISML phase two requires INR 1,000 crore by 2027.

• Trading occupancy in retail expected to return to 95%+ in coming quarters.

• Strategic brand refresh and tenant mix optimization underway to drive future growth.