Q1 2027 Phoenix Mills Ltd Earnings Call Transcript
Key Points
- Phoenix Mills Ltd (BOM:503100) reported a 13% increase in consolidated revenue to INR1,075 crores and a 14% growth in operating EBITDA to INR642 crores for Q1 FY27.
- The company's retail portfolio showed robust growth with rental income increasing by 17% year-on-year to INR595 crores and consumption growing by 32% year-on-year.
- Phoenix Mills Ltd (BOM:503100) has a strong development pipeline with several projects expected to become operational through 2027 and mid-2028, providing clear visibility on future growth.
- The company has maintained a conservative balance sheet with healthy cash generation, supporting ongoing CapEx and land payments.
- Phoenix Mills Ltd (BOM:503100) has successfully repositioned select mature assets, enhancing customer experience and market positioning, as seen with the rebranding of Phoenix MarketCity Pune.
- Despite strong growth, the gap between consumption and rental growth remains, particularly in categories like jewelry and electronics, which have lower rental contributions.
- The company's office business, while expanding, still has a rent-paying occupancy of only 42%, indicating a lag in income recognition.
- There are delays in some projects, such as the Bangalore PMC expansion and the launch of residential projects in Kolkata and Bangalore, which are now expected in 2027.
- The retail income as a percentage of consumption has decreased to 12.5% from 14% three years ago, indicating potential challenges in maximizing rental income.
- The company faces challenges in aligning trading occupancy with leased occupancy, particularly in assets like Phoenix MarketCity Bangalore.
Ladies and gentlemen, good day, and welcome to the Q1 FY27 results conference call of The Phoenix Mills Limited. (Operator Instructions) Please note this conference is being recorded.
At this time, I would like to hand the conference over to Mr. Varun Parwal. Thank you, and over to you, sir.
Thank you. Good morning, everyone. It is a pleasure to welcome you all to discuss our operating and financial performance for the first quarter of fiscal year 2027. Iâm pleased to share that we have made a strong start to the year with broad-based growth across our core businesses.
Consolidated revenue grew 13% to INR1,075 crores, and operating EBITDA grew 14% to INR642 crores. Our core revenue, that is revenue from our annuity businesses, grew 17% year-on-year to INR1,033 crores, while EBITDA increased 19% year-on-year to INR649 crores. At Phoenix, we continue to build integrated destinations where people choose to shop, work, live, and unwind, and I think this interconnected model is once again
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