Phoenix Mills Q2 owner profit rises 7% as core businesses grow

The Phoenix Mills Limited reported profit attributable to owners of Rs 325.712 crore for the quarter ended 30 September 2026, 7% above Rs 303.9939 crore a year earlier. Phoenix Mills increased property and related services revenue by 16% to Rs 925.0898 crore and hospitality revenue by 16% to Rs 175.138 crore, offsetting lower residential revenue.

How much did Phoenix Mills’ Q2 profit increase?

Phoenix Mills’ profit attributable to owners rose Rs 21.7181 crore year on year to Rs 325.712 crore in the quarter ended 30 September 2026, from Rs 303.9939 crore in the quarter ended 30 September 2025. Basic earnings per share, which is not annualised for the quarter, increased to Rs 9.11 from Rs 8.50.

Consolidated net profit after tax before associates increased to Rs 424.0579 crore from Rs 382.8414 crore. The group’s share of associates’ profit was Rs 2.9409 crore, compared with Rs 1.2486 crore a year earlier, taking net profit after tax and associates’ profit to Rs 426.9988 crore.

Profit before tax increased Rs 35.102 crore to Rs 549.6415 crore, while total expenses rose Rs 7.7793 crore to Rs 639.4529 crore. Total comprehensive income attributable to owners reached Rs 330.81 crore, against Rs 292.2939 crore, as other comprehensive income attributable to owners changed to a Rs 5.098 crore gain from a Rs 11.70 crore loss.

Which Phoenix Mills businesses drove quarterly revenue?

Property and related services drove Phoenix Mills’ quarterly expansion, with segment revenue rising Rs 127.9724 crore to Rs 925.0898 crore in the quarter ended 30 September 2026. The segment, which provides mall and office areas on a leave-and-licence basis, recorded profit before tax and interest of Rs 536.7926 crore, compared with Rs 415.8085 crore a year earlier.

Hospitality services revenue rose to Rs 175.138 crore from Rs 151.5461 crore, reflecting a Rs 23.5919 crore increase in the hotels and restaurants segment. However, its profit before tax and interest declined to Rs 41.1422 crore from Rs 43.2538 crore, unlike the increase recorded in property and related services.

Residential Business revenue declined Rs 113.772 crore to Rs 60.7559 crore, from Rs 174.5279 crore in the corresponding quarter. Profit before tax and interest in the segment, which sells residential properties, fell to Rs 38.5802 crore from Rs 116.6311 crore.

Total segment revenue before inter-segment eliminations rose to Rs 1,160.9837 crore from Rs 1,123.1915 crore. After eliminating inter-segment revenue of Rs 8.1772 crore, versus Rs 7.7643 crore a year earlier, Phoenix Mills reported revenue from operations of Rs 1,152.8065 crore.

What changed in Phoenix Mills’ costs and quarterly profit?

Phoenix Mills’ total expenses increased 1% to Rs 639.4529 crore in the September 2026 quarter, compared with a 4% increase in total income to Rs 1,189.0944 crore. This difference contributed to a Rs 35.102 crore increase in profit before tax to Rs 549.6415 crore.

Finance cost rose to Rs 103.1614 crore from Rs 91.9398 crore and other expenses increased to Rs 226.8758 crore from Rs 208.1682 crore. Electricity expense rose to Rs 56.8646 crore and depreciation and amortisation increased to Rs 93.7961 crore, compared with Rs 53.8673 crore and Rs 91.2264 crore respectively.

Employee benefits expense fell to Rs 104.9575 crore from Rs 107.518 crore, while cost of materials consumed declined to Rs 44.6105 crore from Rs 50.7476 crore. Inventory movement was an expense of Rs 9.187 crore, compared with Rs 28.2063 crore in the September 2025 quarter.

Phoenix Mills charged accelerated depreciation of Rs 4.6363 crore in the September 2026 quarter after reassessing the remaining useful life of part of a mall building proposed for demolition and redevelopment. The June 2026 quarter included Rs 4.6248 crore of such depreciation, making the half-year charge Rs 9.2611 crore.

How did Phoenix Mills perform in the first half and what changed corporately?

Phoenix Mills’ profit attributable to owners for the half year ended 30 September 2026 rose 14% to Rs 622.5753 crore from Rs 544.6803 crore. Revenue from operations increased 8% to Rs 2,227.7505 crore from Rs 2,068.4125 crore, while profit before tax increased 13% to Rs 1,042.0392 crore.

Property and related services revenue for the half year rose to Rs 1,820.7763 crore from Rs 1,561.1685 crore, while hospitality services revenue increased to Rs 359.7292 crore from Rs 307.0327 crore. Residential Business revenue declined to Rs 64.1024 crore from Rs 217.2639 crore over the same period.

Net cash generated from operating activities was Rs 1,414.6637 crore in the half year, compared with Rs 1,230.8416 crore a year earlier. Phoenix Mills used Rs 1,950.8077 crore in investing activities, including Rs 1,442.5591 crore for property, plant, equipment, investment property and intangible assets.

Island Star Mall Developers Private Limited received National Company Law Tribunal approval on 27 October 2026 for a selective reduction of equity share capital linked to the Tranche 2 payment under a 24 July 2025 framework agreement. In the September 2026 consolidated results, Phoenix Mills recognised the present value of balance consideration payable to Canada Pension Plan Investment Board as a financial liability, with a corresponding impact on that investor’s non-controlling interest.

Phoenix Mills allotted 43,227 equity shares of Rs 2 each under its 2018 employee stock option scheme, increasing paid-up equity share capital to Rs 71.5356 crore at 30 September 2026 from Rs 71.5269 crore at 31 March 2026. The group had 37 subsidiaries and five associates at the September reporting date.

Conclusion

Phoenix Mills’ September-quarter earnings increase came principally from property and related services, whose revenue added Rs 127.9724 crore year on year, and from a Rs 23.5919 crore increase in hospitality revenue. Those gains exceeded the Rs 113.772 crore decline in Residential Business revenue, while aggregate expenses increased more slowly than total income.

The next disclosed matters to watch are the planned demolition and redevelopment of the mall building that resulted in Rs 9.2611 crore of accelerated half-year depreciation, and implementation of Island Star Mall Developers’ capital reduction approved on 27 October 2026. Phoenix Mills also said the merger of six step-down subsidiaries into Astrea Real Estate Developers Private Limited had no impact on the consolidated results.