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Informist, Thursday, May. 1, 2025

By Akash Mandal

MUMBAI – The Phoenix Mills Ltd. is confident of delivering a strong double-digit growth in its core retail portfolio for 2025-26 (Apr-Mar) on the back of sustained demand and proactive planning. In FY25, the company's total consumption rose 21% from the previous year to INR 137.50 billion. The company's retail operations include both operational and under-development retail properties, such as malls. 

The company also expects to maintain capital expenditure of INR 10 billion-INR 12 billion annually over the next five years. While any acquisition and major purchases may push the number over the upper end of the target, the capex on the construction side is expected to remain in this range. For the March quarter, the company's net-debt to earnings before interest, taxes, depreciation, and amortisation ratio was 1.2 times, which is among the strongest in the industry, the company said. 

Speaking on the current uncertain macroeconomic conditions and consumption trends, the company said it does not have a heavy exposure to any particular category, and maintains a balance between both domestic and international brands. "India is a retail market of significant size and scale, and it remains quite underpenetrated...any impact is going to be limited and resitricted for a short term," the company said. "If the catchment profile is strong and India's macro story remains intact, we believe consumption impact, if any, would be transitory in nature," it added.

MALL OPERATIONS

The Phoenix Mills Ltd. is currently undertaking asset enhancement in its malls portfolio to move towards new age consumption, and expects these malls to be fully operational in the near future. The company expects malls in Pune and Bengaluru to be operational within the next six to nine months, the company's management said in a post earnings conference call Thursday.

The company said it will also operationalise the third floor of Phoenix Marketcity mall in Bengaluru in the second half of 2025, which consists of new retail area of 170,000 square feet. "With the planned churn and revamp that we have, I think FY27 should prove to be a very strong year for Bengaluru in terms of consumption," the company's management said.

While the company is not adding any fresh area in Phoenix Marketcity, Pune, it will add 50,000 square feet of area in the Phoenix Marketcity mall in Mumbai. "The time to make it operational is very quick, and you should see the impact of it by the end of this financial year," the company said. The Rise 2, which is a new 250,000 square feet area at Phoenix Palladium in Mumbai, will become fully operational by June. The company said it expects to add new retail area spanning 450,000 square feet considering its project pipeline. The company also added that its mall in Ahmedabad has leased out the entire available space.

For 2025-26 (Apr-Mar), the company said it is prioritising relocations and optimising their operations to "bring in new-age anchors while also creating space for premium categories across jewellery, watches, cosmetics, as well as new fine dining experiences."

After market hours Wednesday, the company reported a consolidated net profit of INR 2.67 billion for the March quarter on revenues of INR 10.16 billion. Ahead of the results, its shares ended 2% higher at INR 1,664.50 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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