Phoenix Mills Reports Record FY26 Performance, Expands Office Space

FY26 Performance Highlights

The Phoenix Mills Ltd. (PML) has announced strong operational results for the fiscal year ended March 31, 2026. Retail consumption across its malls reached a record approximately ₹16,578 crore, marking a 21% increase compared to the previous year. In the fourth quarter of FY26, retail consumption showed even stronger growth, rising 31% year-on-year to around ₹4,251 crore.

The company's Grade A office portfolio saw significant expansion, adding approximately 2.8 million sq ft during FY26. This brings the total Gross Leasable Area (GLA) for offices to about 4.8 million sq ft. PML also reported leasing over 2.2 million sq ft of office space throughout the fiscal year, achieving a leased occupancy of roughly 70% by March 2026.

PML's residential business experienced substantial growth, with gross sales jumping from ₹212 crore in FY25 to approximately ₹471 crore in FY26. The hospitality segment, represented by The St. Regis, reported a 7% year-on-year increase in Revenue Per Available Room (RevPAR) for FY26.

It is important to note that these figures are provisional and subject to audit adjustments.

Expansion Strategy and Background

Phoenix Mills is executing an aggressive growth strategy across its business verticals. The company aims to grow its retail portfolio to over 14 million sq ft by 2027 and 18 million sq ft by 2030, up from its current operational retail area of over 11 million sq ft. New developments and expansions are planned in cities including Kolkata, Surat, and Coimbatore.

Concurrently, PML is expanding its commercial office space, targeting around seven million sq ft by 2027, a notable increase from its current approximately 4.8 million sq ft completed GLA. The hospitality segment also plans major expansion, aiming to triple its portfolio to 1,800 keys by FY30 through investments in new hotels, such as a Grand Hyatt in Bengaluru.

Recently, Phoenix Mills acquired the remaining 49% stake in Island Star Mall Developers Private Limited (ISMDPL), giving it full ownership and streamlining operational control over key retail assets.

Key Risks to Monitor

Investors should note that the reported financial and operational figures are provisional and unaudited, pending final audit adjustments.

A past regulatory matter involved a subsidiary, Offbeat Developers Private Limited, receiving a Goods and Services Tax (GST) show cause notice and penalty totaling approximately INR 16.57 crore for the tax period April 2019 to March 2020. This related to tax liability, interest, and penalties.

The company is also undertaking significant capital expenditure for its ongoing expansion plans. Monitoring the execution of these projects and their funding is crucial.

Future Outlook

The enlarged and diversified portfolio, featuring substantial new retail, office, and hospitality assets, is expected to drive future revenue growth. The increased leased occupancy in the office segment contributes to a more predictable income stream. The strong performance in residential sales signals successful project execution and market demand for its premium properties. These expansion plans indicate a clear growth trajectory, with substantial capital allocation planned for the coming years.