The Phoenix Mills

“with the trading occupancy ramp-up that we have, that will progressively come on stream in the coming months, you should continue to expect double-digit growth in the rental income going forward for FY28.”

“I think, over a long period of time, we have maintained a guidance of double-digit growth in rental, and we have been able to deliver on it, and we keep our fingers crossed and continue to work hard to deliver this going forward as well within the operational portfolio.”

“About 50% of the brands in Rise 1 are going to be new brands that we are adding there. We have completed about 60% of the leasing, and the rentals are expected to be upwards of INR 500 pspm for that block, which is higher than the existing rent of Palladium overall complex.”

“Our development pipeline is also progressing well, with projects scheduled for completion and commencement of operations from 2027 onwards.”

“It would actually help enhance the arrival experience and give a broader frontage to our land parcel on the main Diamond Harbour Road, but it has no impact as such on the mall commencement timelines.”

“The mall would be operational next year, in Calendar Year 2027.”

“So, 2030 is when we would target or we would expect for operations for Thane, Chandigarh, and Coimbatore.”

“It is our endeavor to double the size of Palladium and Phoenix MarketCity Bangalore from the current 1 million to about 2 million sq ft.”

“Even Thane and Chandigarh, we are pushing the size of the retail malls to 1.6 to 1.8 million sq ft, given the amount of retailer interest that we have here.”

“Lucknow, when it started, was just 900,000 sq ft, and by the time we end this expansion, it will actually reach 1.1 million sq ft.”

“The new benchmark is definitely moving to a 1.3-1.4 million sq ft of retail size.”

“If you see where we were in 2024, we are increasing retail from 11 million to about 19 million sq ft. We are increasing offices from about 2 million to 9 million sq ft, and we are also significantly increasing our office portfolio.”

“In offices, our portfolio occupancy has increased to approximately 79% in September (2026) from 70% in March 2026 and 72% in June (2026).”

“Our billing occupancy has also increased, and that is why we see office income growing by 64% year-on-year to INR 89 crores in the second quarter.”

“As tenants complete their fit-outs and commence operations, we expect the portfolio to continue to contribute progressively more to our income and earnings.”

“We saw a 20% increase in average room rates for The St. Regis, Mumbai while the EBITDA margins remained healthy at 44%.”

“Rental income grew by 15% to INR 605 crore during the quarter and by 16% to INR 1,200 crores during the first half.”

“For the first half, consumption increased by 28% to INR 9,415 crores. What is particularly encouraging is that every mall in our portfolio delivered double-digit consumption growth during the quarter.”

“Excluding jewelry and electronics, consumption grew by 22% during the quarter.”

“Out of 25%, not more than 3% can be attributed to increase in trading area. The rest of it has come from natural growth.”

“Another important aspect to highlight is that we are seeing about one-third of the increase in consumption coming from the new stores.”

“Not only do we expect this trend to continue, we definitely expect this growth percentage to increase in the festive season.”

“Retail EBITDA grew by 18% to INR 639 crores during the quarter and by 17% to INR 1,264 crores during the first half, supported by rental growth, operating leverage, and cost discipline.”

“You would have seen that typically we have a 20% increase on our previous minimum guarantee rentals,when we reprice the expiries, we expect the same trend to continue as well.”

“If you see this quarter, the rent to consumption has improved to 13% compared to a low of 12% that we had in quarter four.”

“So it is, the rent is growing ahead of consumption, and that is reflected in the rent to consumption also normalizing to the long-term average of 13.5% to 14%.”

“By the time we reach FY28, some of the earlier leases would also be coming up for expiry and renewal, and that should give us an opportunity to also relook at re-optimizing and repricing some of the rentals.”

“Net cash from operations increased by 20% to INR 711 crore. Operating free cash flow after tax and net interest grew by 22% to INR 631 crore.”

“For the first half, operating free cash flow from our annuity businesses increased by 30% to INR 1,137 crore.”

“As of September 2026, gross debt was at INR 6,117 crore, and the liquidity was at INR 2,638 crore, resulting into a net debt of INR 3,479 crore.”

“Net debt reduced by INR 179 crore during the Q2 (compared to June 2026) and was INR 319 crore higher compared to March 2026.”

“Net debt-to-EBITDA remained comfortable at 1.2x, while the average cost of debt declined to 7.66%.”

“We expect the capital reduction to be completed in November 2026, following which PML stake in ISMDPL will increase from 58.33% to 68.1%. The capital reduction consideration is INR 1,350 crore.”

“Finally, there is an advance that we have given for an acquisition under discussion, that is also included in the number for this.”

“We currently have one at a very advanced stage, for which we have also given some advance consideration earlier in the year. But let us secure all the necessary approvals and sign the documents before we announce it.”

“For example, in Lucknow, while we are adding a mall, we are also evaluating addition of a luxury hotel on top of the mall.”

“With the success of Gourmet Village in Phoenix Palladium, we are also rolling out this experiential fine dining format across our other centers.”

“These initiatives have temporarily affected trading occupancy at some assets. We expect occupancy to improve across our portfolio as the new stores and upgraded formats commence operations.”

“In fact, right now at this time, across our portfolio, 5% of the leasable area is under active fit-outs at this time.”

“there is also 5% of area that is under fit-out at a portfolio level, which in itself has had a 2-3 percentage point impact on the consumption growth that we reported during the quarter.”

“Second is, the approval has taken longer time than what we were expecting to start this premise because of the election and other reasons. But we are expecting that to start maybe in two quarters’ time, and you will see in couple of our investor calls subsequently.”

“One is that when we took over, actually the plan was to build something else, and then subsequently we changed it to pure residential.”

“The revenue from retail, offices, hotel, and our asset management vertical has grown by 16% year-on-year to Rs. 1,055 crores.”

“Our EBITDA from these annuity business lines has increased by 21% to INR 669 crores, while profit after tax and before minority interest from this business line has grown by 31% to INR 391 crores.”

“For the first half of this financial year, our annuity EBITDA has increased by 20% to INR 1,318 crores.”

“For Q2, consolidated revenue stood at INR 1,153 crore, and operating EBITDA at INR 710 crore. EBITDA margin improved to 62%. Profit after tax and after minority interest was INR 326 crore for the quarter.”

“I think in F&B, I would say that our revenue percentages would typically be 15% and higher, depending on the kind of format that is there.”