Phoenix Mills Limited (PML), a leading retail-led mixed-use developer, has reported a 5% year-on-year increase in consolidated revenue to Rs 953.00 crore for the first quarter of fiscal year 2026. The company's performance was driven by strong growth across its retail, hospitality, and residential segments.

Financial Highlights

• Consolidated revenue rose to Rs 953.00 crore in Q1 FY26, up from Rs 904.00 crore in Q1 FY25
• Operating EBITDA increased by 6% to Rs 564.00 crore
• Net profit after tax and minority interest grew by 4% to Rs 241.00 crore
• Diluted earnings per share (EPS) improved to Rs 6.73, compared to Rs 6.50 in the same quarter last year

Segment Performance

The company's core businesses, comprising retail, office, and hospitality, showed robust growth:

• Retail consumption increased by 12% year-on-year to Rs 3,588.00 crore
• Retail rental income grew by 4% to Rs 506.00 crore
• Hospitality segment revenue rose by 11% to Rs 130.00 crore

Acquisition of CPP Investments' Stake in ISMDPL

In a significant move, Phoenix Mills announced the acquisition of Canada Pension Plan Investment Board's (CPP Investments) 49% stake in Island Star Mall Developers Private Limited (ISMDPL), a material subsidiary of the company. The transaction, valued at approximately Rs 5,449.00 crore, will be paid over 36 months in four tranches.

Key points of the acquisition:

• Post-completion, PML will hold 100% ownership of ISMDPL
• The deal is subject to shareholder approval and necessary regulatory clearances
• The acquisition is expected to be earnings-accretive from the first year

Management Commentary

Shishir Shrivastava, Managing Director of Phoenix Mills, stated, "This transaction allows us to consolidate full ownership of a portfolio of high-quality, retail-led mixed-use assets across key Indian cities. ISMDPL has grown into a strong platform with scale, stability, and clear visibility for future growth."

Future Outlook

The company remains focused on its expansion plans, with several projects in the pipeline:

• ISMDPL platform is expected to include over 5.2 million sq. ft. of retail space
• Around 4 million sq. ft. of office space is planned
• 2 to 3 hotels totaling approximately 1,000 keys are in development

Phoenix Mills continues to strengthen its position in India's retail and commercial real estate sectors, with this acquisition marking a significant step in its growth strategy.

Phoenix Mills Limited (PML), a leading retail-led mixed-use developer, has announced robust financial results for the first quarter of fiscal year 2026, along with a significant strategic move to consolidate its ownership in a key subsidiary.

Q1 FY26 Financial Highlights

For the quarter ended June 30, 2025, Phoenix Mills reported:

• Consolidated revenue from operations of Rs. 953.00 crore, up 5% year-over-year
• Consolidated EBITDA of Rs. 564.00 crore, a 6% increase from Q1 FY25
• Net profit after tax and share in profits of associates at Rs. 320.86 crore, growing 2% year-over-year

The company's core businesses, comprising retail, office, and hospitality segments, showed steady growth:

• Revenue from core businesses reached Rs. 881.00 crore, up 4% from Q1 FY25
• EBITDA from core businesses stood at Rs. 544.00 crore, a 2% increase year-over-year

Retail Segment Performance

The retail segment continued to be a strong driver of growth:

• Retail consumption across malls grew by 12% to Rs. 3,588.00 crore in Q1 FY26
• Retail rental income increased by 4% to Rs. 506.00 crore
• Retail EBITDA rose by 4% to Rs. 535.00 crore

Strategic Acquisition of ISMDPL

In a significant move, Phoenix Mills announced plans to acquire the remaining 49% stake in Island Star Mall Developers Private Limited (ISMDPL) from Canada Pension Plan Investment Board (CPP Investments). Key points of the transaction include:

• Total consideration of approximately Rs. 5,449.00 crore
• Payment to be made over 36 months in four tranches
• Post-completion, PML will hold 100% ownership of ISMDPL

Shishir Shrivastava, Managing Director of Phoenix Mills, commented on the acquisition: "This transaction allows us to consolidate full ownership of a portfolio of high-quality, retail-led mixed-use assets across key Indian cities. ISMDPL has grown into a strong platform with scale, stability, and clear visibility for future growth."

ISMDPL Portfolio Highlights

The ISMDPL platform currently includes:

• 4.4 million sq. ft. of operational retail space
• 2.2 million sq. ft. of recently completed office space
• Potential for expansion to over 5.2 million sq. ft. of retail, 4 million sq. ft. of office space, and 2-3 hotels totaling approximately 1,000 keys

Future Outlook

Phoenix Mills remains focused on its growth strategy, with plans to expand its retail footprint and reposition its brand. The company aims to drive long-term EBITDA growth and boost consumption across its multi-asset portfolio.

The acquisition of full ownership in ISMDPL is expected to be earnings-accretive from the first year and aligns with PML's vision to consolidate ownership in high-performing assets with long-term growth potential.

As Phoenix Mills continues to strengthen its position in India's competitive commercial and retail real estate market, investors and industry observers will be watching closely to see how this strategic move impacts the company's future performance and market standing.