The Phoenix Mills Limited — Q4 FY26 earnings call

Call held 28 Apr 2026

Management summary

Phoenix Mills reported a strong FY26, with consolidated revenue up 16% to ₹4,423 crore and EBITDA up 22% to ₹2,637 crore, driven by robust retail consumption growth of 21%. The company saw significant residential bookings and made substantial investments in retail and office assets while improving its net debt to EBITDA ratio to 1.19x. The development pipeline for new malls and office spaces is progressing, with specific targets for occupancy and rental growth in FY27.

Highlights

  • Consolidated revenue for FY26 grew 16% to ₹4,423 crore, reflecting broad-based growth.

  • Consolidated EBITDA for FY26 grew 22% to ₹2,637 crore, demonstrating strong operating leverage.

  • Retail consumption achieved an all-time high of ₹16,587 crore, up 21% YoY, with Q4 showing 31% growth.

  • Gross Residential Bookings for FY26 doubled to ₹471 crore, indicating strong demand for premium projects.

  • Net debt to EBITDA ratio improved to 1.19x, showcasing disciplined capital allocation despite significant investments.

Concerns

  • Hospitality segment faced a 'challenging backdrop' in FY26, though remained resilient.

  • Q4 consumption moderated sequentially, though retail rentals remained stable.

  • The economic environment is described as 'volatile' by management.

Key financials

  1. Consolidated Revenue ₹4,423 Cr +16%YoY
  2. Consolidated EBITDA ₹2,637 Cr +22%YoY
  3. Consolidated PAT ₹1,557 Cr +20%YoY
  4. Retail Rental Income ₹2,157 Cr +10%YoY
  5. Retail Consumption ₹16,587 Cr +21%YoY
  6. Hotel Income ₹596 Cr +8%YoY

What they filed

Q1 FY27: revenue up 12.8%, net profit up 22.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue918 975 1,016 953 1,115 +21%1,121 +15%1,233 +21%1,075 +13%
EBITDA518 553 560 564 667 +29%656 +19%750 +34%642 +14%
Net profit292 353 348 321 384 +32%366 +4%485 +39%394 +23%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of EBITDA
₹2,663 Cr Total
  • Retail ₹2,246 Cr 84.3%
  • Hotels ₹276 Cr 10.4%
  • Office ₹141 Cr 5.3%

Order book

high confidence

Total value

₹471 Cr

as of 2026-03-31 quantified

100% YoY

Composition

  • One Bangalore West (project)
  • Kessaku (project)

Pipeline

other

Kolkata residential project design and approvals being finalized; new city expansion plans for FY27.

Residential development is approached with a clear strategic lens, not as a capital-intensive growth engine, but as a cash-generating vertical.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Construction and development across retail and office assets ₹1,035 Cr
    • Land and development rights in existing projects ₹431 Cr
    Alongside this, we invested approximately Rs. 1,035 crore in construction and development across retail and office assets, and a further Rs. 431 crore towards land and development rights in existing projects.
  • Debt Gross ₹5,164 Cr · Net ₹3,160 Cr · 1.2× EBITDA
    Gross debt stood at Rs. 5,164 crore with a net debt of Rs. 3,160 crore. Net debt to EBITDA ratio, which was 1.24x last year, has improved to 1.19x this year
  • M&A ISMDPL Acquisition · Closed

    Full ownership of a high-quality cash generation platform.

    The most significant transaction was the buyout of CPP transaction stake in ISMDPL, which will result to full ownership of a high-quality cash generation platform.
  • Liquidity Liquidity disclosed Operating cash flows remained robust, supporting growth investments and first tranche payment for the CPP stake acquisition, while maintaining disciplined leverage.
    Underlying operating leverage improved across segments and operating cash flows remained robust, supporting both growth investments and first tranche payment for the CPP stake acquisition in ISMDPL, while maintaining disciplined leverage.

Guidance & targets

Retail Earnings

  • Retail Earnings Growth Retail Earnings · over the next phase · High confidence double-digit growth
    well positioned for a sustained double-digit growth in retail earnings over the next phase.

    — Rashmi Sen

New Mall Launches

  • Kolkata and Surat Malls Launch New Mall Launches · FY28 · High confidence H2 FY28
    so for Kolkata and Surat, we are expecting to launch it during FY28, in the second half of FY28.

    — Varun Parwal

Office Rental Income & EBITDA

  • Office Rental Income and EBITDA Step-up Office Rental Income & EBITDA · FY27 onwards · Medium confidence meaningful step-up
    We expect a meaningful step-up in rental income and EBITDA from FY27 onwards.

    — Varun Parwal

Office Occupancy

  • Office Portfolio Occupancy Office Occupancy · next few quarters / end of Q1 FY27 · High confidence 90%
    You mentioned that you are targeting 90% occupancy in the next few quarters. ... reaching about 90% by the end of Q1, right?

    — Varun Parwal

Retail Rental Growth

  • Phoenix MarketCity Pune Rental Upside Retail Rental Growth · FY27 · High confidence 14-15%
    Phoenix MarketCity, Pune, we will see close to 14-15% rental upside in FY27

    — Rashmi Sen

  • PMC Bangalore Rental Income Increase Retail Rental Growth · FY27 · High confidence 20%
    PMC Bangalore is going to be close to 20% increase in the rental income.

    — Rashmi Sen

Office Trading Occupancy

  • Overall Office Trading Occupancy Office Trading Occupancy · end of FY27 · High confidence 95-96%
    the trading occupancy should also move up towards the 95-96% levels by the end of FY27.

    — Varun Parwal

Office Income

  • Quarterly Office Income Office Income · by Q4 FY27 · High confidence double current levels
    quarterly income from office assets should double from current levels by the time next year Quarter 4 comes around.

    — Varun Parwal

New City Expansion

  • New City Expansion Transactions New City Expansion · FY27 · High confidence 1-2 transactions
    we will be announcing one or two transactions during FY27 in terms of new city expansion.

    — Varun Parwal

What to watch in Q1 FY27

Kolkata Residential Project Launch Timeline Update

Next couple of quarters (FY27 Q1/Q2)
Current Finalizing design and approvals
Target Specific launch timeline announcement

Why it matters

Provides clarity on the launch of a new residential project, impacting future bookings and revenue streams.

Kolkata residential, Puneet, I think we are finalizing the design and the product mix in there and re-verifying the approvals. So, I think we will give you an update in our coming couple of quarters on the launch timeline for Kolkata residential.

Risks & concerns

  • Volatile Economic Environment

    medium

    The current economic environment is volatile, impacting consumption trends.

    Management acknowledged

  • Challenging Macro Environment for Hospitality

    low

    Hospitality remained resilient despite a challenging backdrop.

    Management acknowledged

  • Sequential Moderation in Q4 Consumption

    low

    Even as Q4 consumption moderated sequentially, retail rentals remained largely stable due to structural protections.

    Management acknowledged

Q&A highlights

7 direct
Timeline for Kolkata/Surat Malls and Kolkata Residential Project Partial
so for Kolkata and Surat, we are expecting to launch it during FY28, in the second half of FY28. ... Kolkata residential, Puneet, I think we are finalizing the design and the product mix in there and re-verifying the approvals. So, I think we will give you an update in our coming couple of quarters on the launch timeline for Kolkata residential.

Analyst sought clarity on new project timelines; management provided specific dates for malls but deferred residential timeline, indicating ongoing planning.

Asked by Puneet Gulati

Consumption Growth Excluding Jewellery and Electronics Direct
So, if I take out jewellery and electronics, both of which have had very strong growth during FY26, but they are structurally lower as far as revenue share is concerned, then our Q4 consumption growth would come in at about 17-18% for the rest of the portfolio.

Provided a more granular view of consumption growth, excluding high-volume, lower-revenue-share categories, which is crucial for understanding underlying retail health.

Asked by Mohit Agarwal

Office Portfolio Occupancy Targets and RISE Commercial Leasing Strategy Direct
I think what has helped to set these office assets apart are the amenity and the product experiences that we have provided. ... RISE is going to be a similar product that is going to be set apart from the rest of the development that you see in the city. We are already engaging with IPCs and tenants and conversations are at an advanced stage here.

Addressed the strategy for achieving high occupancy in the office portfolio, emphasizing product quality and amenities, and confirmed active engagement for RISE Commercial.

Asked by Mohit Agarwal

Rental Growth vs. Consumption Growth in Phoenix MarketCity Pune and Bangalore Direct
So, you will see the upside of rental of that area in the current year, FY27, as well as a lot of churns that happened during the year and brands have opened during different periods and some in Q3, Q4. So, you will also see the full upside of that rental in FY27. So, Phoenix MarketCity, Pune, we will see close to 14-15% rental upside in FY27, and PMC Bangalore is going to be close to 20% increase in the rental income.

Explained the lag between consumption and rental growth, attributing it to leased but under fit-out areas and strategic repositioning, providing specific rental upside targets for FY27.

Asked by Puneet Gulati

Strategy for Divesting Smaller Malls and Hotel Assets Direct
Puneet, we have not thought about divesting those assets. We have a strong team in the North which has an oversight on all of these assets and amongst the larger assets that we have in North that are upcoming. So, we have not thought about divesting these, but we take your point that these are not very impactful in the overall financial statements, they don't have much of an impact. However, there is potential in these cities as they continue to grow.

Management clarified their stance on smaller, less impactful assets, indicating no current plans for divestment, suggesting potential for future growth.

Asked by Puneet Gulati

Rental Upside from Upcoming Lease Expiries Direct
I think on a blended average, we have seen nearly a 20% growth in rentals between new deals and renewals combined. Now, we have a strong leasing expiry pipeline that is there and we have identified opportunities to reposition especially in terms of the brands and category met as well as the F&B experiences like Gourmet Village that Rashmi spoke about earlier. We will use this opportunity to reposition the mall and target strong rental upside not too dissimilar from what you have seen in FY26 as well.

Management confirmed significant rental upside potential from upcoming lease expiries, leveraging strategic repositioning and new brand introductions.

Asked by Pritesh Seth

Timeline for Doubling Quarterly Office Income Direct
Yes, Pritesh, I think you should expect to see revenue coming in from Q2 onwards and quarter-on-quarter you should see revenue growing. I don't want to hazard a guess, but I would estimate that our quarterly income from office assets should double from current levels by the time next year Quarter 4 comes around.

Provided a clear timeline for the significant growth in office income, indicating a strong ramp-up from newly operational assets.

Asked by Pritesh Seth

April Consumption Trend and FY27 Outlook Direct
So, April is looking very good. We are seeing close to a 30% growth in April. We have also had Akshay Tritiya in April. So obviously the jewelry continues to have that seasonal upside in the month of April and without this category the growth would fall somewhere between 17-18%.

Gave an early indication of Q1 FY27 consumption trends, showing strong growth in April, both overall and excluding seasonal categories.

Asked by Parvez Qazi

3 min read 7 chapters

Detailed narrative

Strong FY26 Performance & Retail Momentum

Phoenix Mills delivered a robust FY26, with consolidated revenue growing 16% to ₹4,423 crore and EBITDA increasing 22% to ₹2,637 crore. This performance was achieved without adding new retail capacity, underscoring the strength of its mixed-use platform. Retail consumption reached an all-time high of ₹16,587 crore, up 21% year-on-year, with Q4 consumption growing 31%. Retail rental income also saw a 10% increase to ₹2,157 crore, driven by healthy tenant trading performance and strategic repositioning efforts across malls.

Office Business Transformation & Growth

The company's office platform has undergone significant transformation, expanding to 4.8 million sq. ft. across four cities. Gross leasing for FY26 exceeded 2.2 million sq. ft., boosting overall portfolio occupancy to 70%. Mature assets achieved 83% occupancy, while newly completed assets reached 62%. Management anticipates a meaningful step-up in rental income and EBITDA from FY27, targeting 90% occupancy by Q1 FY27 and a doubling of quarterly office income by Q4 FY27, driven by superior amenities and strong leasing momentum.

Hospitality Segment Resilience

Despite a challenging macro backdrop, the hospitality segment demonstrated resilience in FY26. Hotel income grew 8% to ₹596 crore, with EBITDA increasing 14% to ₹276 crore. The St. Regis Mumbai continued to outperform, achieving 49% EBITDA margins and average room rates exceeding ₹21,000, supported by strong occupancy. Courtyard by Marriott Agra also maintained high occupancies in the high 70s and stable margins.

Residential Business & Cash Generation

The residential business had a strong FY26, with gross bookings doubling to ₹471 crore and collections closely tracking at ₹467 crore. Revenue recognized stood at ₹489 crore, primarily from premium residential projects in Bengaluru like One Bangalore West and Kessaku. These projects achieved average realization pricing of ₹28,000-29,000 per sq. ft., highlighting the company's strategy of using residential development as a cash-generating vertical by monetizing high-quality inventory in mature micro-markets.

Strategic Capital Allocation & Debt Management

Phoenix Mills deployed significant capital in FY26, investing ₹1,035 crore in construction and development for retail and office assets, and an additional ₹431 crore for land and development rights. A key transaction was the buyout of CPP's stake in ISMDPL. Despite these investments, the balance sheet remained strong, with gross debt at ₹5,164 crore and net debt at ₹3,160 crore. The net debt to EBITDA ratio improved to 1.19x from 1.24x, reflecting disciplined capital allocation and robust operating cash flows.

Development Pipeline & Future Expansion

The company's development pipeline is progressing, with new malls in Kolkata and Surat targeted for launch in H2 FY28. Projects in Thane, Coimbatore, and Chandigarh have moved from approval to execution, with necessary clearances obtained and pre-construction works initiated. Phoenix Grand Victoria in Kolkata is already 79% leased, and Phoenix Surat is 41% leased. The company is also actively scouting for new city expansions, with plans to announce 1-2 transactions in FY27, alongside expanding existing assets into super campuses.

Rental Growth Dynamics & Outlook

The observed lag between consumption and rental growth is attributed to the company's MG plus revenue share lease structure, the ramp-up phase of newer assets like Mall of Asia and Mall of the Millennium, and seasonal consumption in high-volume categories. Management expects strong double-digit rental growth in FY27, with Phoenix MarketCity Pune projected for a 14-15% rental upside and PMC Bangalore for a 20% increase, driven by areas coming online and strategic repositioning.

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