1. At a Glance
Phoenix Mills is India’s largest mall landlord—with over 9 mega-malls and now 59% operating margins to flex. Q1 FY26 saw ₹953 Cr in revenue, ₹321 Cr net profit, and EBITDA margins that scream monopoly. But with a P/E of 52, working capital days soaring past 61, and inventory days nearing Kumbh Mela cycles, is this mall-party running out of parking?
2. Introduction with Hook
Picture this: you’re at High Street Phoenix, sipping overpriced coffee, surrounded by Zara bags and food court chaos. Guess who’s collecting rent on every square foot of that madness? Yup—Phoenix Mills Ltd.
In an era where retail was supposed to die from online shopping, this company built 2.1 million sq. meters of FOMO-inducing commercial heaven and laughed all the way to the bank.
3. Business Model (WTF Do They Even Do?)
Phoenix isn’t a mall operator. It’s a rent-extracting machine that moonlights as a real estate conglomerate.
They make money by:
- Leasing premium retail space across India’s metro cities
- Developing commercial real estate & office space
- Owning and operating luxury hotels (St. Regis Mumbai, anyone?)
- Select residential development (just to keep it spicy)
“Basically, they build the place, rent it out, and then charge you for valet too.”
4. Financials Overview
Q1 FY26 Highlights:
- Revenue: ₹953 Cr (↓5% QoQ)
- EBITDA: ₹564 Cr (↑7% QoQ)
- Net Profit: ₹321 Cr (EPS ₹6.73)
- OPM: 59%
- ROE (TTM): 9.81%
- ROCE: 11.2%
Margins holding strong. Topline taking a breather. But profit’s still dancing to mall music.
5. Valuation
- CMP: ₹1,448
- Market Cap: ₹51,752 Cr
- P/E: 52.6x
- P/B: 4.96x
- Book Value: ₹292
Valuation Check:
- P/E 30x on FY26E PAT ₹1,400 Cr → FV = ₹42,000 Cr → FV/share = ₹1,175
- EV/EBITDA 20x on FY26E EBITDA ₹2,400 Cr → FV = ₹48,000 Cr → FV/share = ₹1,340
“Trading above fair value. But hey—it’s not just a mall, it’s a lifestyle fortress.”
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results: Healthy profit, stable EBITDA, muted topline
- Mall occupancy: Near full
- New mall launches: Ahmedabad and Pune underway
- St. Regis operations steady
- ESOP allotments + board rejigs: Routine but worth watching
Not much drama. Just cold, clean execution.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹72 Cr |
| Reserves | ₹10,377 Cr |
| Debt | ₹4,687 Cr |
| Other Liabilities | ₹6,396 Cr |
| Fixed Assets | ₹14,466 Cr |
| CWIP | ₹3,143 Cr |
| Investments | ₹1,465 Cr |
| D/E Ratio | 0.45 |
“Assets are land-heavy, cash light. But debt’s manageable and interest cost is under control.”
8. Cash Flow – Sab Number Game Hai
| Year | Ops CF | Inv CF | Fin CF | Net CF |
|---|---|---|---|---|
| FY23 | ₹2,162 Cr | -₹1,859 Cr | -₹299 Cr | ₹3 Cr |
| FY24 | ₹2,084 Cr | -₹2,162 Cr | -₹47 Cr | -₹126 Cr |
Free cash flow? Not quite. They’re constantly building malls like they’re Minecraft players on Red Bull.
9. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 9.81% |
| ROCE | 11.2% |
| OPM | 57% |
| D/E | 0.45 |
| Working Capital Days | 61 |
| Inventory Days | 1,294 |
“Inventory days = retail RE reality. But still… 1,294 days? That’s longer than most Netflix subscriptions.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹2,616 Cr | ₹1,519 Cr | ₹1,478 Cr |
| FY24 | ₹3,814 Cr | ₹2,161 Cr | ₹1,307 Cr |
| FY25 (TTM) | ₹3,862 Cr | ₹2,194 Cr | ₹1,313 Cr |
Profit holding. EBITDA growing. Revenue… plateauing?
“The malls are running out of space—or maybe just headroom for more rent hikes.”
11. Peer Comparison
| Company | Rev (TTM Cr) | PAT | P/E | ROE |
|---|---|---|---|---|
| DLF | ₹7,993 | ₹4,656 Cr | 44x | 11.4% |
| Lodha | ₹13,779 | ₹2,764 Cr | 48x | 14.7% |
| Oberoi Realty | ₹4,869 | ₹2,062 Cr | 31x | 14.7% |
| Phoenix Mills | ₹3,862 | ₹1,313 Cr | 52.6x | 9.8% |
“Not the fastest. But the most ‘stable’ cash cow in the realty zoo.”
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 47.26% |
| FIIs | 36.27% |
| DIIs | 12.72% |
| Public | 3.74% |
Promoter holding stable. FII/DII stacking like it’s a HDFC Bank rights issue.
“Retail? Still window shopping.”
13. EduInvesting Verdict™
Phoenix Mills is a rarity: a RE stock with strong margins, stable profits, and visibility beyond a few quarters. But is it priced for perfection? Definitely.
With rich valuations, peak mall monetization, and long cash conversion cycles, this is not a “high-growth rocket.” It’s a real estate REIT proxy in a velvet suit.
“Strong tenant. Expensive rent. Solid landlord. But don’t expect fireworks unless they start leasing out the rooftops too.”
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Phoenix Mills, Q1 FY26, Retail Real Estate, EduInvesting Premium
