Phoenix Mills Shines in Q2 FY26 with Strong Retail and Residential Performance

Phoenix Mills Limited has delivered a robust performance in the second quarter and first half of fiscal year 2026, showcasing the strength of its integrated mixed-use ecosystem. The company reported a significant jump in consolidated revenue and EBITDA, driven primarily by its thriving retail portfolio and strong momentum in the residential segment. This period marks a phase of elevating customer experience, strengthening the balance sheet, and accelerating future growth.

For Q2 FY26, Phoenix Mills' consolidated revenue from operations surged by 22% year-on-year to Rs. 1,115 crore. Operating EBITDA followed suit with an impressive 29% growth, reaching Rs. 667 crore. The net profit for the quarter also saw a substantial increase of 39% year-on-year, touching Rs. 304 crore. The first half of FY26 reflected similar positive trends, with revenue growing by 14% to Rs. 2,068 crore and consolidated EBITDA up 17% to Rs. 1,231 crore. This consistent performance underscores the company's operational discipline and the compounding impact of its mixed-use strategy.

Financial Highlights

Segmental Performance and Strategic Initiatives

The retail segment continues to be a primary growth driver for Phoenix Mills. Retailer sales for H1 FY26 reached Rs. 7,335 crore, marking a 13% year-on-year increase, while Q2 consumption stood at Rs. 3,750 crore, up 14%. This growth was broad-based across categories, with fashion and accessories growing 17% and family entertainment and multiplexes up 23%. A significant milestone was the launch of 'Gourmet Village' at Phoenix Palladium, a two-level dining and entertainment hub with 19 outlets, which has been instrumental in driving consumption and enhancing the customer experience. The company is also implementing strategic repositioning and brand enhancement initiatives across its MarketCity malls, leading to higher trading densities despite temporary occupancy dips due to churn.

In the office portfolio, Phoenix Mills has more than doubled its footprint to nearly five million square feet across four cities. Leasing momentum has been strong, with occupancy in operational assets in Mumbai and Pune improving from 67% in March 2025 to over 77% by September 2025. The company aims for an average occupancy of 80-90% across all operating assets by the end of the current quarter. The residential business also demonstrated robust sales, with H1 FY26 sales of Rs. 287 crore already surpassing the full-year sales recorded in FY25. This strong performance was led by projects like One Bangalore West and Kessaku, reflecting sustained demand for premium residential products.

Financial Prudence and Future Outlook

Phoenix Mills has maintained a prudent balance sheet, with gross debt touching less than Rs. 5,000 crore and overall liquidity remaining strong. Net debt declined by Rs. 500 crore in H1 FY26, settling at approximately Rs. 2,200 crore, resulting in a healthy net debt to EBITDA ratio of less than 1x. Furthermore, the company successfully reduced its average cost of debt from 8.50% to 7.68%. The completion of the CPP Transaction, with the first tranche payment expected in early November 2025, will further bolster liquidity.

Management remains confident in delivering double-digit growth across its retail portfolio in FY26. Several new projects are underway, with the Phoenix Grand Victoria Mall in Kolkata, Surat Mall, and the retail expansion at Phoenix MarketCity Bengaluru expected to be operational by Q3 calendar year 2027. The company's commitment to continuous land acquisition for future retail development, targeting one to two million square feet annually beyond 2030, highlights its long-term growth vision. This disciplined approach to capital allocation and strategic expansion positions Phoenix Mills for sustained value creation.

Segmental Revenue and EBITDA Contribution (Q2 FY26)

Concluding Thoughts

Phoenix Mills' Q2 FY26 results underscore its strategic clarity and disciplined execution. The company's focus on creating integrated destinations, enhancing customer experiences through initiatives like Gourmet Village, and prudent financial management has yielded strong operational and financial outcomes. With a robust pipeline of new projects and a commitment to sustainable growth, Phoenix Mills is well-poised to continue its upward trajectory in the Indian real estate market.