Phoenix Mills (503100) investor relations material

Executive summary

• FY 2026 delivered strong operating performance with consolidated revenue of INR 4,423 crore, up 16% year-over-year, and EBITDA of INR 2,637 crore, up 22%, achieved without new retail capacity additions.

• Retail consumption reached an all-time high of INR 16,587 crore, up 21% year-over-year, with Q4 consumption up 31%.

• Offices experienced robust leasing momentum, residential sales doubled, and hospitality remained resilient.

• Audited standalone and consolidated financial results for FY 2026 were approved with unmodified audit opinions from statutory auditors.

• Strategic investments included the buyout of CPP Investments' stake in ISML, increasing shareholding to 58.33%.

Financial highlights

• Net profit after tax for FY 2026 was INR 1,557 crore, up 20% year-over-year; consolidated net profit after tax and share in profits of associates was INR 1,556.51 crore, up from INR 1,307.34 crore.

• Operating free cash flow after working capital, tax, and interest was INR 2,140 crore, up 23%.

• Gross debt stood at INR 5,164 crore, net debt at INR 3,160 crore, and net debt to EBITDA improved to 1.19x from 1.24x.

• Operating EBITDA margin improved to 60% in FY 2026 from 57% in FY 2025.

• Basic consolidated EPS (before exceptional items) for FY 2026 was INR 35.04, up from INR 27.18 in FY 2025.

Outlook and guidance

• Double-digit rental growth expected in FY 2027, especially at Phoenix Marketcity Pune (14%-15%) and Bangalore (20%).

• Office portfolio occupancy targeted to reach 90% in the next few quarters, with rental income from new assets expected to double by Q4 FY 2027.

• Portfolio expansion, densification, and luxury brand additions are expected to drive the next phase of EBITDA growth.

• Multiple new projects in Thane, Coimbatore, Chandigarh, Surat, and Kolkata are progressing, with completions expected by 2027–2030.

• Tranche 2 payment for ISMDPL share acquisition planned for FY 2026-27, with further tranches and payment mechanisms yet to be determined.