Phoenix Mills Shares Fall 6% as Nomura Cuts Post-Results Target to ₹1,700 Citing Q1 FY27 Earnings Miss

Stock Reaction to Q1 Results

Shares of Mumbai-based real estate developer Phoenix Mills declined over 6 per cent in intraday trade on Wednesday after the company reported its June quarter (Q1FY27) results. The stock opened lower at ₹1,989.90 and extended losses as the session progressed, slipping to an intraday low of ₹1,896 as investors reacted negatively to the earnings.

Nomura's Assessment

Post Q1 results, Nomura maintained its 'Neutral' stance on Phoenix Mills, saying the Q1 earnings came softer than expectations, and kept the target price unchanged at ₹1,700.

The Retail Rental Gap

The retail mall segment's income growth came in at 17 per cent Y-o-Y, lagging consumption growth at 32 per cent Y-o-Y versus its estimate of 20 per cent Y-o-Y. Retail income as a percentage of consumption was 12.5 per cent in Q1 FY27 versus 14.1 per cent in Q1 FY26 and 12.9 per cent in 4Q FY26 due to the category mix effect (consumption growth was led by jewellery and electronics categories, which typically have lower revenue-sharing arrangements with mall operators); minimum guarantee-plus-revenue-share lease structure for newer malls; and a tenant churn phase at Market City malls in Pune and Bangalore.

Project Timing Adjustment

There was a slight delay in the opening of a new mall in Surat as the company has pushed the completion timeline from CY27E to CY27-28E.

Strength Elsewhere

The company's office portfolio, however, remained strong, with revenue and Ebitda rising 14 per cent and 31 per cent Y-o-Y, respectively. For the quarter ended June 30, 2026, the company reported a 23 per cent Y-o-Y growth in its net profit at ₹393.55 crore.

About Phoenix Mills

Phoenix Mills Limited is an India-based owner, operator and developer of retail-led mixed-use destinations, comprising retail malls, commercial offices and hospitality assets, and also builds residential assets. Its real estate asset portfolio consists of retail mall, commercial office, residential, and hospitality projects located in Mumbai, Chennai, Bengaluru, Pune, Kolkata, Lucknow, Bareilly, Agra, Ahmedabad, Indore, Surat, Chandigarh, Thane, and Coimbatore.