Motilal Oswal Reiterates 'Buy' Rating on Phoenix Mills with Target Price of Rs 2,030 Post Q4 FY26 Results

Motilal Oswal Reiterates Buy Rating on Phoenix Mills

Phoenix Mills reported FY26 revenue growth of 16% to Rs 44.2 billion, with EBITDA rising 22% to Rs 26.4 billion and adjusted profit after tax jumping 29% to Rs 12.5 billion. Following these results, consumption growth was robust across segments, with electronics up 41% year-on-year, jewelry up 35%, entertainment up 22%, and fashion up 16%.

Analyst Perspective

Motilal Oswal Financial Services has reiterated its Buy rating on Phoenix Mills with a target price of Rs 2,030 per share, reflecting confidence in the company's operational trajectory and growth prospects.

Portfolio Expansion and Occupancy Gains

Retail rental income grew 14% year-on-year despite no new asset additions, with major properties including Mall of Asia, Citadel, Mall of Millennium, and Palladium Mumbai reporting 52%, 27%, 18%, and 15% growth respectively in Q4 FY26, driven by rental growth, strong consumption, and improving occupancy.

The company completed gross leasing of approximately 2.2 million square feet during FY26 across assets in Mumbai, Pune, Bengaluru, and Chennai, with portfolio occupancy reaching 70%.

Commercial Office Segment Growth

In the commercial office segment, the company witnessed 13% year-on-year growth in income to Rs 580 million during Q4 FY26, with EBITDA at Rs 380 million growing 13% year-on-year and margins standing at 65%.

Future Growth Trajectory

Phoenix Mills plans to scale up its retail portfolio gross leasable area to more than 18 million square feet by FY30, from the current 11.5 million square feet. The company projects a 10% CAGR in rental income to reach Rs 25.9 billion during FY26 through FY28.

Aided by improving occupancy at the retail and office portfolio, rental escalations, and stronger consumption growth, Phoenix Mills expects a revenue CAGR of 14% to reach Rs 57.3 billion during FY26 through FY28.