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.

Phoenix Mills Limited (PML) has announced a significant strategic move to consolidate its ownership in Island Star Mall Developers Private Limited (ISMDPL), a material subsidiary of the company. The Board of Directors of PML has approved a framework agreement to acquire Canada Pension Plan Investment Board's (CPP Investments) 49% equity stake in ISMDPL for Rs 5,449.16 crores.

Transaction Details

The transaction, subject to shareholder approval and necessary regulatory clearances, will be executed over a period of three years in four tranches. Upon completion, PML will increase its shareholding in ISMDPL from 51% to 100%, making it a wholly-owned subsidiary.

Financial Implications

The consideration will be paid through various modes, including:

• Declaration of dividends by ISMDPL
• Share buyback
• Selective capital reduction
• Direct acquisition of equity shares

This strategic move is expected to be earnings-accretive for PML, strengthening its position in India's competitive commercial and retail real estate market.

ISMDPL Portfolio

ISMDPL, along with its subsidiaries, owns and manages four marquee retail destinations with a combined Gross Leasable Area (GLA) of approximately 4.4 million square feet. These include:

• Phoenix MarketCity Bangalore
• Phoenix Citadel in Indore
• Phoenix Mall of the Millennium in Pune
• Phoenix Mall of Asia in Bengaluru

Additionally, ISMDPL has recently completed two Grade A office developments totaling around 2.2 million square feet in Bengaluru and Pune.

Q1 FY2026 Financial Highlights

Alongside this announcement, PML released its Q1 FY2026 financial results:

Management Commentary

Shishir Shrivastava, Managing Director of Phoenix Mills Limited, 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."

The company expects the completed office portfolio to start contributing to EBITDA from FY2026, with upcoming phases becoming operational between 2026 and 2027.

Future Outlook

PML anticipates that this consolidation will drive sustained EBITDA growth and strong cash flows while maintaining a healthy leverage profile. The transaction is aligned with the company's strategic vision to strengthen its position in India's commercial and retail real estate development market.

As Phoenix Mills continues to expand its portfolio and consolidate its holdings, investors and industry observers will be watching closely to see how this move impacts the company's long-term growth trajectory in the competitive Indian real estate sector.