Phoenix Mills has increased its shareholding in its material subsidiary, Island Star Mall Developers Private Limited (ISMDPL), from 51% to 55.57%. This change comes as a result of ISMDPL's buyback of 2,03,40,909 equity shares from Canada Pension Plan Investment Board (CPP Investments) for Rs. 895 crores.

Transaction Details

The buyback transaction is part of a framework agreement executed in July 2025, aimed at providing a complete exit to CPP Investments from its 49% equity stake in ISMDPL. Phoenix Mills did not participate in this buyback offer.

Key Points of the Transaction

• Buyback Details: ISMDPL bought back 2,03,40,909 equity shares from CPP Investments
• Transaction Value: Rs. 895 crores
• Phoenix Mills' Stake: Increased from 51% to 55.57%
• Agreement Date: Framework agreement executed in July 2025

About ISMDPL

ISMDPL, incorporated on April 10, 2006, is a material subsidiary of Phoenix Mills. It operates and manages the Phoenix MarketCity mall in Bengaluru. The company also has three subsidiaries:

1. Alyssum Developers Private Limited
2. Sparkle One Mall Developers Private Limited
3. Insight Mall Developers Private Limited

These subsidiaries, along with ISMDPL, form the ISMDPL Platform, which is involved in various real estate development projects across India.

Financial Performance

ISMDPL's financial performance over the last three years:

Future Outlook

Upon completion of the proposed transaction, Phoenix Mills is expected to hold 100% of ISMDPL's shareholding, gaining sole control directly and/or through its affiliates. This move aligns with Phoenix Mills' strategy to consolidate its position in the real estate development sector, particularly in mall operations and management.

The transaction has received necessary approvals, including those from the Audit Committee, Board, and Shareholders of the company, as it falls under the ambit of Related Party Transactions as per the provisions of Section 2(76) of the Companies Act, 2013 and Regulation 2(1)(zc) and 23 of SEBI Listing Regulations.

This strategic move by Phoenix Mills reinforces its commitment to expanding its mall portfolio and strengthening its position in the Indian retail real estate market.

Phoenix Mills Limited, a leading retail-led mixed-use developer, has reported robust financial results for the second quarter and first half of fiscal year 2026, driven by strong performance across its retail, office, and residential portfolios.

Financial Highlights

For the first half of FY26, the company's revenue reached 2,068.00 crore, reflecting a 14% growth, while consolidated EBITDA stood at 1,231.00 crore, up 17% year-on-year.

Retail Portfolio Performance

The retail portfolio showed robust performance with retailer sales of 7,335.00 crore in H1 FY26, up 13% year-on-year. Key highlights include:

• Fashion and accessories grew by 17%
• Family entertainment and multiplexes up by 23%
• Athleisure and watches each recorded growth above 15%

Phoenix Palladium, Mumbai, reported a like-to-like consumption growth of 13%, driven by the success of the new Gourmet Village and brand premiumization initiatives.

Office Portfolio

The office portfolio achieved over one million square feet of gross leasing during the year, with occupancy improving from 67% to over 77%. The company expects to reach an average of 80-90% occupancy across all operating assets by the end of the current quarter.

Residential Segment

Residential sales crossed 287.00 crore in the first half, surpassing full-year FY25 sales. The quarter saw revenue of about 171.00 crore, led by sales at One Bangalore West and Kessaku, with pricing exceeding 27,000.00 per square foot.

Financial Position

The company's balance sheet remains strong:

• Net debt declined by 500.00 crore in H1 FY26 to 2,200.00 crore
• Net debt to EBITDA ratio remains healthy at less than 1x
• Average cost of debt reduced from 8.50% to 7.68%

Future Outlook

Phoenix Mills continues to focus on its expansion plans:

• Phoenix Grand Victoria Mall, Kolkata, and Surat Mall expected to be operational in calendar year 2027
• Retail expansion at Phoenix MarketCity, Bengaluru, to be completed by Q3 calendar year 2026
• Office expansion (Art Exchange) at Phoenix MarketCity, Bengaluru, first phase operational by Q3 calendar year 2026
• Grand Hyatt Hotel in Bengaluru planned for 2027 opening

The company also announced the elevation of Shishir Shrivastava to Vice Chairman, transitioning from his role as Group CEO and Managing Director.

With a strong pipeline of projects and robust financial performance, Phoenix Mills is well-positioned for continued growth in the coming years.