Phoenix Mills profit rises 22.95% YoY; office income jumps 44%
Revenue grew +12.80% YoY, while a sequential margin dip reflected costs falling more slowly than revenue.
Filed 28 Jul 2026, 18:04 IST · after market close · Phoenix Mills Ltd (PHOENIXLTD)
Key takeaways
- Consolidated net profit rose +22.95% YoY to Rs 394.51 cr, helped by a 1.35 percentage-point lower tax rate.
- Operating margin improved 0.47 percentage points YoY to 59.68%, as revenue growth of +12.80% outpaced expense growth of +11.50%.
- Commercial offices income rose +44% YoY to Rs 75 cr, including Rs 15 cr from offices completed during 2025, management said.
Price around the results
Profit growth stayed ahead of revenue in Q1FY27
Phoenix Mills reported consolidated revenue growth of +12.80% YoY, with operating profit rising +13.69% and net profit increasing +22.95% to Rs 394.51 cr. The sharper net-profit growth partly reflects the tax rate falling 1.35 percentage points to 20.04%. Sequentially, revenue fell -12.83% and net profit declined -18.72% from Q4FY26.
Costs supported the YoY margin gain but limited sequential momentum
Operating margin expanded 0.47 percentage points YoY because expenses grew +11.50%, slower than revenue. On a sequential basis, revenue fell -12.83% while expenses declined only -10.38%, so operating margin narrowed 1.11 percentage points from Q4FY26. Other income accounted for 8.35% of pre-tax profit, while the lower sequential tax rate of 20.04% cushioned the fall in net profit.
Margin remains elevated versus peers, without a continuing decline
Phoenix Mills' 59.68% operating margin was 45.07 percentage points above the 14.61% median for 25 Consumer Discretionary peers that had reported the quarter. The sequential decline interrupted the Q4FY26 peak of 60.79%, but margin remains above 59.21% in Q1FY26 and 55.07% in Q4FY25. The recent pattern is therefore a pullback from the latest peak rather than a third straight quarterly decline.
Office ramp-up and Bangalore expansion anchor the company narrative
Management said offices completed during 2025 saw tenant move-ins and occupancy ramp-up, contributing Rs 15 cr of income in Q1FY27; it reported total commercial offices income of Rs 75 cr, up 44% YoY. The company said its growth roadmap to 2030 is supported by assets, land parcels and development rights already under its control. Management also said Phoenix MarketCity Bangalore's Phase 2 retail expansion covers approximately 0.17 msft of GLA and targets completion in 2027, within a broader plan to expand the campus from approximately 1 msft to more than 4 msft.
No immediate market reaction after the post-close filing
The consolidated results were filed after market close on 28 Jul 2026, so there is no reported reaction yet. After its past eight results, the stock rose three times and fell five times, with a median absolute move of 3.73%. The latest response history includes moves ranging from -7.64% to +5.37%, providing context for the reaction when trading resumes.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,075 cr | ₹1,233 cr | -12.83% | +12.80% |
| Other income | ₹41 cr | ₹57 cr | -27.56% | +26.86% |
| Expenses | ₹433 cr | ₹484 cr | -10.38% | +11.50% |
| Operating profit | ₹642 cr | ₹750 cr | -14.42% | +13.69% |
| Operating margin (%) | 59.68% | 60.79% | — | — |
| Interest | ₹94 cr | ₹97 cr | -3.66% | -1.38% |
| Depreciation | ₹96 cr | ₹89 cr | +6.89% | +2.20% |
| Profit before tax | ₹493 cr | ₹620 cr | -20.39% | +20.88% |
| Tax | ₹99 cr | ₹134 cr | -26.40% | +13.24% |
| Net profit | ₹395 cr | ₹485 cr | -18.72% | +22.95% |
| EPS (₹) | ₹8.30 | ₹11.28 | -26.42% | +23.33% |
Operating margin of 59.68% compares with a Consumer Discretionary sector median of 14.61% across 25 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Offices completed during 2025 saw tenant move-ins and occupancy ramp-up, contributing Rs. 15 crore of income in Q1 FY27.
- Commercial offices income was Rs. 75 crore in Q1 FY27, up 44% over Q1 FY26.
Guidance & outlook
- The company’s growth roadmap to 2030 is embedded within assets, land parcels and development rights under its control.
Expansion
- Phoenix MarketCity Bangalore is planned to expand from approximately 1 msft to more than 4 msft.
- Phoenix MarketCity Bangalore’s Phase 2 retail expansion has approximately 0.17 msft of GLA and targets completion in 2027.
New initiatives
- Phoenix MarketCity Bangalore is being developed as an integrated mixed-use campus, with PMC-B growing from 1 msft to more than 4 msft.
What to watch
- Whether operating margin holds above 59.68% after the 1.11-percentage-point sequential decline.
- Whether commercial offices income builds on Rs 75 cr after the 44% YoY increase.
- Updates on the approximately 0.17 msft Bangalore Phase 2 retail expansion targeted for completion in 2027.