Phoenix Mills Plans Strategic Expansion to 1–2 New Cities by FY2027, Scouting Hyderabad, Jaipur and Navi Mumbai

Phoenix Mills Charts Strategic Retail Expansion Across Three New Markets

Phoenix Mills is actively scouting new cities including Hyderabad, Jaipur, and Navi Mumbai for expansion, with potential announcements expected during FY27. The disclosure came during the company's Q4FY26 earnings call held April 28, 2026, signalling aggressive growth plans as the developer consolidates its position in India's retail-led mixed-use segment.

The company achieved consolidated revenue of Rs 4,423 crore and EBITDA of Rs 2,637 crore, representing growth of 16% and 22% respectively, without adding any new retail capacity during the year. This backdrop of strong same-asset performance underscores the strength of existing operations and provides capital flexibility for new market entry.

Doubling Down on Consumption Markets

Retail consumption reached Rs 16,587 crore, growing 21% year-on-year. The company completed approximately 920 deals covering 3.2 million sq. ft. and opened over 400 new stores, with marquee brands including Apple, Ikea, Uniqlo, Bershka, Rolex, Golden Goose, Lego, Victoria's Secret, Onitsuka Tiger launched during the year. This leasing momentum, driven without physical capacity additions, demonstrates Phoenix Mills' ability to densify existing assets and suggests appetite for capturing incremental space in new gateways.

The three cities under consideration represent distinct market demographics. Phoenix Mills' existing portfolio is strategically located in high-growth urban centres in Mumbai, Bengaluru, Pune, Chennai, along with a growing presence in Tier-2 cities like Lucknow and Indore. Hyderabad and Jaipur, both experiencing rapid consumption growth, would extend the company's reach across India's emerging retail hubs. Navi Mumbai, adjacent to the company's stronghold in Greater Mumbai, offers the prospect of deepening existing brand and logistics infrastructure.

Long-Term Growth Framework

Phoenix Mills plans to expand its retail space from roughly 11.5 million sq. ft. to more than 14 million sq. ft. by 2027, and push that number closer to 18 million by 2030. New malls are planned in Kolkata, Surat, Coimbatore, Thane, Chandigarh, and a few other high-growth cities. The FY27 announcement of 1–2 new city scouts aligns with this mid-term roadmap, suggesting Phoenix Mills is reserving specific growth slots for these three markets.

Operating free cash flow reached Rs 2,140 crore, growing 23%, while net profit after tax stood at Rs 1,557 crore, up 20%. The balance sheet strength supports the capital deployment required for land acquisition and project initiation in new metros, where anchor positioning is critical to securing premium catchments.

Office and Mixed-Use Scaling

Beyond retail, the company has accelerated commercial office expansion. The office platform expanded significantly from approximately 2 million sq. ft. in FY24 to nearly 4.8 million sq. ft. across four cities: Mumbai, Pune, Bangalore, and Chennai, with portfolio occupancy reaching 70%. This diversified asset base reduces dependence on mall growth alone and provides template for integrated mixed-use developments in new cities.

Under-construction assets show encouraging progress with Phoenix Grand Victoria in Kolkata at 79% leased and Phoenix Surat at 41% leased, both targeted for operational launch in the second half of FY28. These projects will add material retail capacity before FY27 city announcements materialise operationally.

Capital Deployment and Strategic Partnerships

The company invested approximately Rs 1,035 crore in construction and development across retail and office assets, and Rs 431 crore towards land and development rights. Phoenix Mills plans to continue its expansion by investing between INR 1,200 crore and INR 1,300 crore annually. This disciplined capital framework allows for both completion of committed projects and opportunistic entry into new markets without stretching leverage. The net debt to EBITDA ratio improved from 1.24x in the previous year to 1.19x.

The company's partnerships with global capital—including Canada Pension Plan Investment Board and GIC Singapore—remain integral to executing the expansion roadmap, providing both equity cheque-writing capability and operational expertise in new geographies. Formal announcements on specific city entry are expected to follow feasibility studies and site acquisition processes during FY27.