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Informist, Wednesday, Jul. 29, 2026

 

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--Phoenix Mills: Aim to launch Kolkata, Bengaluru residential ops early 2027 
--CONTEXT: Comments by Phoenix Mills mgmt in post-earnings analyst call 
--Phoenix Mills: See Kolkata residential ops launch price INR 30,000/ sq ft 
--Phoenix Mills: See opportunity to renew rents higher than market rate 
--Phoenix Mills: See scope to expand projects further in Chandigarh, Thane 
--Phoenix Mills: In discussion for 2-3 new land acquisitions in Parel 
--Phoenix Mills: See consumption up over 20% in July for newer assets 
--Phoenix Mills: Aim to add 450,000 sq ft of area in Mumbai Palladium in FY28

 

By Ashutosh Pati and Avishek Rakshit

 

MUMBAI/KOLKATA – The Phoenix Mills Ltd. plans to renew rents for its malls at prices higher than the prevalent market price, owing to rising consumption growth at these malls, the company's management said Wednesday in the post earnings conference call with analysts. It is also "conscious" of the occupancy costs of retailers for them to continue getting profits.

 

"...we are seeing healthy growth in terms of consumption and we expect to continue to see healthy growth in consumption going forward. As well as we have a great pipeline of new brands that want to come into our assets," the management said. Consumption at Phoenix Mills' newer assets such as those in Pune and Ahmedabad rose over 20% this month. The company sees this growing in "healthy double digit" going forward.

 

For the June quarter, its retail consumption rose 32% on year to INR 47.30 billion. The retail rental income rose 17% on year to INR 5.94 billion for the quarter.

 

Going forward, the company expects substantial growth in rental income from malls. This will mainly be driven by the expiry of leases for around half of its portfolio and the new assets it plans to add. "...50% of our portfolio is coming up for lease expiry over the next three years. So there's a substantial opportunity for us to capture the market trends through all these renewals and releasing for this portfolio," the management said.

 

"...as regards the correlation between consumption and rental growth, like you rightly mentioned, the difference between consumption and growth is primarily driven by the mix of our categories and commercial structures," it added.

 

Phoenix Mills expects to renew rents for office spaces at INR 350-INR 400 per square feet. The company is adding 1.6 million square feet of offices at Lower Parel in Mumbai and plans to add another 500,000 square feet of retail by 2026-27 (Apr-Mar). The leased occupancy for office rose to 72% as of June from around 70% a year ago. "Several of our developments and expansions are expected to become operational through 2027 and mid-2028 while our recently completed offices continue to move steadily towards higher occupancy and billing," the management said.

 

Phoenix Mills expects to launch new residential projects in Kolkata and Bengaluru by the end of 2026 or in early 2027. The total area of the Kolkata project is likely to be around 1.2 million sq ft and the launch price is seen around INR 30,000 per sq ft, as per the management.

 

 

The management sees further potential and scope to expand projects in Chandigarh and Thane. It has planned another retail development of 1.3 million sq ft with around 400 keys and office space of 1.2 million sq ft in Thane, with the possibility of adding a third tower. For Chandigarh, it sees the potential to add two towers, but that decision "we will take later, whether we add two hotels or we add some other use to complement the retail development," the management said.

 

PHOENIX PALLADIUM

The company plans to launch the next phase of expansion for its flagship project 'Phoenix Palladium' in FY28. It plans to add around 450,000 sq ft of area to the mall and has already completed leasing of about half of this area. "...we are working on currently in terms of planning the tenant mix," the management said. The company is also in active discussion for the acquisition of two to three land parcels in Parel, Mumbai.

 

The company Tuesday reported a consolidated net profit of INR 2.97 billion for the June quarter, up over 23% on year. It earned revenue of INR 10.75 billion for the quarter, up nearly 13%. At 1322 IST, its shares traded at INR 1,919.80 on the National Stock Exchange, fown 5.1% from Tuesday.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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