Phoenix Mills Ltd delivered consolidated profit of ₹393.55 crore for Q1 FY27, representing a 23% year-on-year increase from ₹319.92 crore in Q1 FY26, though the results fell short of analyst expectations. According to Business Standard, the company reported consolidated revenue of ₹1,074.94 crore and EBITDA of ₹642 crore, with profit after tax growing 13.83% year-on-year. However, the earnings missed Bloomberg consensus estimates by 4% for revenue, 3% for EBITDA, and 12% for profit after tax. The realty firm's revenue grew 12.8% to ₹1,074.94 crore from ₹952.99 crore in Q1 FY26, demonstrating strong operational momentum across its business segments. On a sequential basis, profit declined 18.98% quarter-on-quarter from ₹485.72 crore in Q4 FY26, while EBITDA fell 14.4% QoQ from ₹750 crore in Q4 FY26.
The retail mall segment showed mixed performance with revenue and EBITDA rising 16% and 17% year-on-year respectively, though it lagged behind consumption growth. As per Business Standard, retail income growth came in at 17% year-on-year, lagging consumption growth at 32% year-on-year (versus estimated 20% year-on-year). Retail income as a percentage of consumption declined to 12.5% from 14.1% a year ago due to category mix effects, with consumption growth skewed toward jewelry and electronics which carry lower revenue-share ratios. Nomura noted that the company's Market City malls in Pune and Bangalore are currently in a tenant-churn phase and will likely take 1-2 quarters more to stabilize. The retail segment's performance was impacted by minimum guarantee-plus-revenue-share lease structure for newer malls and the slight delay in opening of new mall in Surat, with completion timeline pushed from CY27E to CY27-28E.
The commercial office segment demonstrated strong growth with revenue and EBITDA increasing 14% and 31% year-on-year respectively. According to Business Standard, existing assets rentals grew 17% year-on-year, while the segment benefited from rentals from newer assets completed in FY26. The hospitality segment reported flat revenue and EBITDA on a year-on-year basis, showing no growth in the quarter. Nomura highlighted a slight delay in opening of new mall, with the completion timeline for the Surat mall moving from CY27E to CY27-28E, affecting future retail income growth visibility.
Despite the strong year-on-year growth, Phoenix Mills shares declined over 6% in intraday trade after the company reported quarter-on-quarter profit decline. According to Business Standard, the stock opened lower at ₹1,989.90 and extended losses to an intraday low of ₹1,896, trading 5% lower at ₹1,920 on NSE as of 12:30 PM. The stock fell as much as 6% following the mixed quarterly results, with investors reacting to the 18.98% quarter-on-quarter decline in consolidated net profit and sequential EBITDA decline. Total consumption in Q1 FY27 stood at ₹4,730 crore, demonstrating a YoY growth of 32% over Q1 FY26, indicating robust demand across the company's retail portfolio. Expenses increased 8% year-on-year to ₹622.76 crore in Q1.
Nomura has maintained its 'Neutral' stance on Phoenix Mills, saying the Q1 earnings came softer than expectations and kept the target price unchanged at ₹1,700, implying a downside of 16% from the previous close of ₹2,023.23. According to Nomura, Phoenix Mills' Q1 numbers missed the Street estimates primarily due to weaker retail rental income growth and lower revenue recognition from the residential segment. Phoenix Mills' portfolio comprises retail-led mixed-use developments, including retail malls, commercial offices and hospitality assets, alongside residential assets. The company operates 12 malls across eight cities, along with the St. Regis Hotel in Mumbai and the Courtyard by Marriott in Agra. Its premium residential projects in Bengaluru include One Bangalore West and Kessaku, providing a diversified real estate portfolio spanning multiple Indian cities.
