More Stories

Informist, Friday, Oct. 31, 2025

--Phoenix Mills: Aim to build 1-2 mln sq ft retail space a year till FY30

--Phoenix Mills: Bengaluru emerging as strong centre for retail space growth

--Phoenix Mills: Average cost of debt 7.68% as on Sept 30

--Phoenix Mills: To continue to acquire land across cities

--Phoenix Mills: Debt in future will be taken via Lease Rental Discounting

--Phoenix Mills: Sales of retail space reviving in Bengaluru, Pune

--CONTEXT: Comments by Phoenix Mills mgmt in post-earnings analyst call

--Phoenix Mills: Net debt as on Sept 30 at INR 22 bln

--Phoenix Mills: Confident of double digit growth in retail sales in FY26

By Narayana Krishna and P. Madhu Kumar

HYDERABAD/MUMBAI - Confident over robust growth in the retail space segment, real estate developer Phoenix Mills Ltd. is aiming to build 1-2 million square feet of retail space every year till 2029-30 (Apr-Mar), the company management said in a post-earnings conference call on Friday. The management is confident of achieving a double-digit growth in retail space sales in the current financial year.

The Mumbai-based real estate company has reported a consolidated net profit of INR 3.04 billion for the September quarter, up 39.4% on year. Its revenue for the quarter rose 21.5% on year to INR 11.15 billion.

The demand for retail space is reviving fast in Bengaluru and Pune, the management said. In fact, Bengaluru is emerging as a key growth driver of retail sales, it said. In line with the demand for retail space, the company will continue to acquire land across major cities, the management said. Phoenix Mills is engaged in the operation and management of malls, the construction of commercial and residential properties, and the hotel business, spanning Mumbai, Bengaluru, Kolkata, Lucknow, and other major cities.

"Our retail portfolio continues to build on strong growth momentum, delivering both financial performance and a richer customer experience. Retail sales for H1 (Apr-Sept) FY26 reached 7,335 crores (INR 73.35 billion), up 13% year-on-year. In the second quarter, consumption stood at 3,750 crores (INR 37.50 billion), up 14%," Phoenix Mills management said.

The management said that the ongoing retail and other construction projects are progressing as per the planned deadlines. "In terms of project completion, we are happy to report that we are on track both on budget and on timelines," management said.

The company is expecting the Grand Victoria Mall in Kolkata to be ready sometime in the third quarter (Jul-Sept) of calendar year 2027. The mall in Surat will follow a similar timeline. In Bengaluru, the retail expansion is expected to be completed in the third quarter of next calendar year. The office space expansion at phase-I of Phoenix Market City in Whitefield, Bengaluru, will also be completed in the third quarter (Oct-Dec) of FY27, the company said. The Grand Hyatt Hotel in Bengaluru is expected to open by the end of 2027, the company said.

The new projects in Chandigarh and Thane were at the drawing board stage. The company has obtained preliminary approvals for the Thane mall project, while the construction of the Coimbatore project is about to start, the management said.

The company is changing its leasing policy to improve its return on capital and increase rental income. 

"Moving on to our leasing strategy, we are strategically curating and optimising our retail mix through right-sizing and planned churns to ensure stronger productivity. We are also upgrading underperforming spaces, introducing premium and high-performing brands across categories of fashion, jewellery, athleisure, watches, beauty and F&B (food and beverages), to further elevate the shopping experience," Phoenix Mills said.

The company said early results of the changed leasing strategy are visible in robust retailer sales, with sales per square foot up over 20% at Phoenix Market City, Bangalore, and 11% at Phoenix Market City, Pune.

The company has reduced its net debt by INR 5 billion during the September quarter, taking the total net debt to INR 22 billion. The average cost of funds as of Sept. 30 was 7.68%. The management said it will consider raising funds through a leasing and rental discounting model for its future projects to avoid higher debt levels.

On Friday, Phoenix Mills shares ended at INR 1,690.10 on the National Stock Exchange, down 0.8% from its previous close.  End

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.