1QFY27: Earnings softer than expectations Quick Note

Research evidence excerpt

1QFY27: Earnings softer than expectations Quick Note

Global Markets Research

Phoenix Mills PHOE.NS PHNX IN 29 July 2026

EQUITY: PROPERTY

Rating1QFY27: Earnings softer than expectations Remains Neutral

Target price INR 1,700 RemainsQuick Note

Closing pricePhoenixMillsreportedearningson28July.Thecompany’searningscallisscheduledfor 28 July 2026 INR 2,023

29Julyat11am.Overall,1QFY27consolidatedrevenue/EBITDAwerebelowBloomberg

consensusestimatesby4%/3%on:1)slower-than-expectedretailrentalincomegrowth

at17%y-y(whichlaggedconsumptiongrowthat32%y-yandvsourexpectationof20% Research Analysts

y-y);and2)lowerrevenuerecognitionfromtheresidentialsegment. India Property

Thestocktradesat23xFY28FEV/EBITDA.Withkeynewermallsexpectedtocomein Akash Gupta - NFASL

2HFY28F(andmaybeFY29F),webelievethecompanywillstartcirclingahigherretail akash.gupta3@nomura.com

consumptionbaseoverthenextcoupleofquartersleadingtolowerconsumptiongrowth, + 91 22 40374043

q-qespeciallyfrom3QFY27Fonwards.Inaddition,visibilityremainslowonretailincome

growthwhichcontinuestolagconsumptiongrowth.WemaintainourNeutralratingand

TPofINR1,700.Belowareourkeytakeaways:

• 1QFY27 PL: Consolidated revenue/EBITDA/PAT at INR10.7bn/INR6.4bn/INR2.97bn

were up 13% y-y / 14% y-y / 23% y-y, but were lower than consensus estimates by -

4% y-y / -3% y-y / -12% y-y.

• Retail Mall Segment: Revenue (retail income + CAM) / EBITDA were up 16% y-y /

17% y-y. Retail income growth came in at 17% y-y, lagging consumption growth at

32% y-y (vs our estimate of 20% y-y). Retail income as a percentage of consumption

was 12.5% (vs 14.1% in 1QFY26 and 12.9% in 4QFY26) due to the following:

○ The category mix effect – 1QFY27's consumption growth was skewed toward

jewelry/electronics (55-61% y-y), which carry lower revenue-share ratios.