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.

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

Financial Highlights

For Q1 FY26 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 of 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% year-over-year increase

Retail Portfolio Performance

PML's retail portfolio demonstrated strong performance in Q1 FY26:

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

The company maintained a high leased occupancy rate of over 95% across its retail assets, although trading occupancy stood at 89% in June 2025 due to ongoing strategic initiatives.

Strategic Acquisition

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). The transaction, valued at approximately Rs. 5,449.00 crores, will be paid over 36 months in four tranches.

Atul Ruia, Chairman of Phoenix Mills Limited, commented on the development: "As we consolidate our stake in the JV, we remain focused on building on this strong foundation and creating some of the most vibrant and high-performing mixed-use destinations in the country."

Upon completion, PML will hold 100% ownership of ISMDPL, which currently operates four major retail destinations with a combined Gross Leasable Area (GLA) of about 4.4 million square feet, including Phoenix MarketCity Bangalore and Phoenix Mall of Asia in Bengaluru.

Future Growth Prospects

The acquisition is expected to be earnings-accretive from the first year and will allow PML to consolidate cash flows and pursue its broader growth plans. ISMDPL's portfolio includes significant development potential, with plans for retail expansion, office spaces, and hotel projects in the pipeline.

Shishir Shrivastava, Managing Director at Phoenix Mills Limited, highlighted the growth potential: "Over the next few years, this platform will include over 5.2 million sq. ft of retail, around 4 million sq. ft of office space, and 2 to 3 hotels totaling approximately 1,000 keys."

Outlook

With strong Q1 results and the strategic move to acquire full ownership of ISMDPL, Phoenix Mills is well-positioned for continued growth in India's retail and mixed-use real estate sector. The company's focus on creating high-quality, integrated urban destinations is expected to drive sustained value creation for shareholders in the coming years.

Phoenix Mills Limited continues to demonstrate its ability to navigate the evolving retail landscape while expanding its portfolio of premium mixed-use developments across key urban centers in India.