Shares of The Phoenix Mills Ltd surged 4% in early trade on Friday after the company posted steady growth in its Q1FY26 earnings and unveiled a significant strategic move to take full control of its key retail platform. As of 9:31 AM, the shares were trading 5.05% higher at Rs 1,521.20.
The real estate and retail mall major reported a 3.4% year-on-year rise in consolidated net profit at ₹240.6 crore for the quarter ended June 30, 2025, compared to ₹232.5 crore in the same period last year.
Revenue from operations also saw a 4.5% YoY increase, coming in at ₹984.5 crore, up from ₹942.4 crore in Q1FY25.
Operating performance remained robust, with EBITDA rising 4.7% YoY to ₹595.3 crore, and margins holding steady at 60.4%, compared to 60.3% a year ago.
On the retail front, consumption across its malls grew 12% YoY, reaching approximately ₹3,588 crore. Gross retail collections stood at ₹853 crore, marking a healthy 7% jump from the year-ago period.
In a major strategic development, Phoenix Mills’ board has approved the acquisition of the remaining 49% stake held by Canada Pension Plan Investment Board (CPP Investments) in Island Star Mall Developers Pvt Ltd (ISMDPL), the company’s premium retail platform.
The move will raise Phoenix Mills’ stake in ISMDPL from 51% to full 100% ownership. The deal is valued at approximately ₹5,449 crore, and will be executed over the next 36 months in four tranches, subject to shareholder and regulatory approvals, including from the Competition Commission of India (CCI).
The transaction will be carried out through a combination of buyback, capital reduction, dividend payout, and/or secondary share purchase by Phoenix Mills or its affiliates.
Independent valuer Bansi S Mehta Valuers LLP pegged the fair value of ISMDPL for the buyout, while Morgan Stanley India advised Phoenix Mills and provided the fairness opinion on the deal.
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