Financial Performance Highlights

Consolidated Performance:

  • Revenue: ₹1,075 crores (13% YoY growth)
  • Operating EBITDA: ₹642 crores (14% YoY growth)
  • EBITDA Margin: 60%
  • Net Profit after share of associate and minority interest: ₹297 crores (23% YoY growth)

Core Annuity Business Performance:

  • Revenue: ₹1,033 crores (17% YoY growth)
  • EBITDA: ₹649 crores (19% YoY growth)

Retail Business Performance:

  • Rental Income: ₹594 crores (17% YoY growth)
  • Retail EBITDA: ₹625 crores (17% YoY growth)
  • Consumption: ₹4,730 crores (32% YoY growth)
  • Consumption excluding jewelry and electronics: 24% YoY growth

Category-wise Consumption Growth:

  • Apparel and accessories (60% of trading area): 24% growth
  • Jewelry: 55% growth
  • Electronics: 61% growth
  • F&B and Entertainment categories: Over 20% growth combined

Office Business Performance:

  • Income: ₹75 crores (44% YoY growth)
  • EBITDA: ₹42 crores (31% YoY growth)
  • Leased Occupancy: 72% (as of June 2026, up from 70% in June 2025)
  • Rent-paying Occupancy: 42% (as of June 2026)

Hospitality Business Performance:

  • Income: ₹145 crores (18% YoY growth)
  • EBITDA: ₹62 crores (19% YoY growth)
  • St. Regis Mumbai led performance with 19% income growth and 20% EBITDA growth

Operational Metrics

Retail Portfolio:

  • Strong momentum across all malls with no new mall area additions during the quarter
  • Completed over 300 leasing transactions covering nearly 1 million square feet
  • Launched approximately 390 new stores over last 12 months including Uniqlo, Lego, Rolex, COS, Bershka, Victoria's Secret, IKEA, Coach, Sephora, Michael Kors
  • Minimum guarantee rentals growing at double-digit rates
  • Revenue share income growing at healthy pace

Asset-specific Performance:

  • Phoenix Avenue of Stars (formerly Phoenix MarketCity Pune): Consumption up 29% YoY, trading density up 26%, rental income ₹60 crores (13% YoY growth), 89% occupancy
  • Phoenix MarketCity Bangalore: Consumption ₹540 crores (22% YoY growth), rental income up 17%, 89% occupancy
  • Both Pune and Bengaluru assets operating at 89% occupancy

Leasing Progress for Upcoming Assets:

  • Phoenix Grand, Victoria, Kolkata: Approaching 90% leasing
  • Surat: 50% leasing
  • Phoenix Palladium and Phoenix MarketCity Bangalore Phase-2 expansions: More than 50% leased
  • Thane, Chandigarh and Coimbatore developments witnessing positive traction

Capital Structure and Financial Position

Cash Flow and Capital Expenditure:

  • Operating free cash flow: ₹602 crores (20% growth)
  • Core businesses contributed ₹584 crores (31% YoY growth)
  • Capital expenditure: ₹1,085 crores
  • ₹314 crores towards construction
  • ₹771 crores towards land acquisition and development rights
  • Includes ₹716 crore payment to GAMADA for Chandigarh land (balance payment)

Debt Position:

  • Gross debt: ₹5,658 crores (as of June 2026)
  • Net debt: ₹3,658 crores
  • Cash balance: Approximately ₹2,000 crores
  • Net debt to EBITDA: 1.3x

Development Pipeline and Growth Visibility

2027 Operationalizations:

  • Retail: Phoenix Grand Victoria (Kolkata, ~1 million sq ft), Phoenix Surat (~1 million sq ft), Phoenix MarketCity Bangalore expansion, Phoenix Palladium expansion
  • Office: Whitefield Bengaluru (~0.4 million sq ft)
  • Hospitality: 400-key Grand Hyatt Hotel in Whitefield

Residential Developments:

  • Expected to launch new residential developments in Kolkata and Bangalore by end of 2026 or early 2027
  • Kolkata: Total area ~1.2 million sq ft, expected launch price around ₹30,000 per sq ft

Long-term Pipeline (Beyond 2028):

  • Three large retail-led developments: Thane, Chandigarh, Coimbatore (completion targeted by 2030)
  • Approvals secured for Phase-3 expansion at Whitefield campus
  • Retail platform target: 18 million square feet by 2030

Lower Parel Development:

  • Project Rise plus adjacent office tower: 1.5-1.6 million sq ft leasable area
  • Pre-leasing started with expected rental range of ₹350-400 per sq ft
  • Additional FSI of 1.4-1.5 million sq ft acquired last year

Residential Business

  • Group residential booking for Q1: ₹64 crores
  • Collections: ₹51 crores
  • Completed inventory available for sale: 1.5 lakh square feet (as of June 2026)
  • Additional sales agreements of ₹20 crores from previous year expected to reflect in Q2

Management Commentary and Outlook

Retail Strategy:

  • 50% of portfolio coming up for lease expiry over next three years
  • Focus on creating space for newer high-performing brands while renewing key tenants
  • Strategy includes category optimization and experiential zone creation
  • Targeting 15%-16% of area for F&B across centers

Growth Guidance:

  • Mid-teens growth in rental income guidance for both FY27 and FY28
  • July 2026 consumption trending at over 20% growth
  • Expect rental growth to catch up with consumption growth through expiries and new additions

Capital Allocation:

  • Actively evaluating 2-3 land acquisition opportunities
  • Focus on densification projects within existing assets (IRR accretive)
  • Maintaining prudent leverage and adequate liquidity

Q&A Session Highlights

  • Discussion on residential project timelines and pricing
  • Clarification on Bengaluru PMC expansion timing (early 2027, F&B oriented floor)
  • Explanation of consumption-rental growth gap (jewelry/electronics contribute 28% consumption but only 7.5% rental)
  • Details on lease expiry strategy and mark-to-market potential
  • Development potential at various locations (Thane: ~4 million sq ft potential, Chandigarh: 1.5-1.7 million sq ft retail with additional tower potential)
  • Office pre-leasing progress and rental expectations