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.

Phoenix Mills Limited , a leading real estate developer, and its subsidiary Offbeat Developers Private Limited have entered into agreements with JSW Neo Energy Limited and O2 Renewable Energy XXVIII Private Limited to invest ₹59.30 million in equity shares and convertible debentures. This strategic move aims to meet the companies' captive renewable energy requirements and comply with regulatory standards.

Investment Details

The total investment of ₹59.30 million is structured as follows:

Purpose and Agreements

The investment will result in Phoenix Mills and Offbeat acquiring up to 45% shareholding in O2 Renewable Energy XXVIII Private Limited, a company incorporated to develop solar power projects. Additionally, both companies have signed a Power Purchase Agreement (PPA) to procure solar power from O2 Renewable XXVIII.

Regulatory Compliance

This acquisition aims to comply with the Electricity Act 2003 requirements, which mandate maintaining a minimum 26% shareholding for captive user status. The investment structure is designed to meet these regulatory standards while advancing the companies' sustainable energy goals.

Transaction Details

The transaction is expected to complete within 90 business days. It's important to note that this deal does not involve any related party transactions.

Implications

This agreement marks a significant step towards sustainable energy adoption in the real estate sector. It demonstrates Phoenix Mills' commitment to environmental responsibility and may set a precedent for other players in the industry. The collaboration between a major real estate developer and renewable energy providers showcases the increasing convergence of real estate and clean energy sectors, potentially paving the way for more such partnerships in the future.

As the real estate industry continues to face pressure to reduce its environmental impact, strategic investments in renewable energy sources like this one by Phoenix Mills could become increasingly common, benefiting both the companies involved and the environment at large.