Phoenix Mills' (PHNX) 4QFY25 consolidated revenues/PAT fell short of EE because of lower residential segment contribution. Despite this, retail consumption grew ~15% year-on-year to ~Rs 32.5 billion, and rental income rose 8% YoY to ~Rs 4.8 billion. Commercial rental income also saw an 8% YoY increase, reaching ~Rs 530 million. The hospitality segment posted revenues of ~Rs 1.7 billion, marking a 4% YoY rise, as per report by Equirus Securities.
Looking ahead, by 2027, PHNX aims to scale its retail portfolio to ~14 million sq. ft., expand its commercial portfolio to 7 million sq. ft., and add 400 hotel keys to its hospitality portfolio. PHNX also aims to scale up its overall portfolio. PHNX's overall expansion will aid growth and profitability over the mid-to-long term, further supported by its comfortable leverage position. The maintain ADD with a SOTP-based Mar '26 TP of Rs 1,806.
Consolidated revenues were down 22% yoy to ~Rs 10.2bn (EE: Rs 13.9bn) with lower contribution from residential and other non-core businesses. Consolidated EBITDA slid 11% yoy to Rs 5.6bn (EE: Rs 8bn), while EBITDA margins at 55.1% were below EE (57.7%) on lower contributions from residential & other non-core businesses. Interest costs declined 5% yoy to ~Rs 941mn while depreciation was up 19% yoy to ~Rs 902mn. Other income grew 21% yoy to ~Rs 451mn. Consolidated recurring PAT declined 17% yoy to Rs 2.7bn (EE: Rs 4.3bn). The quarter saw extraordinary losses of ~Rs 27mn. Adj. PAT was down 18% yoy to ~Rs 2.7bn.
PHNX's retail consumption rose ~15% yoy to Rs 32.5bn, while rental income grew 8% yoy to Rs 4.8bn. In the commercial segment, the net leased area stood at 1.33msf, with occupancy stable at 67% (3QFY25: 69%). Commercial rentals were Rs 530mn (+8% yoy, -1% qoq). The hospitality segment posted revenues of Rs 1.7bn (+4% yoy, flat qoq), supported by healthy occupancies and improved ARRs, driving profitability.
PHNX has been actively expanding over the past two years, acquiring ~53 acres of land with an investment of ~Rs 28.5bn to support future growth. The company aims to scale its retail portfolio to ~14msf by 2027 and ~18msf by 2030 (from ~11.5msf). In the commercial office segment, it targets an increase from ~3msf at present to ~7msf by 2027. In hospitality, PHNX plans to add a 400-key hotel, taking the total to ~988 keys by 2027. Further densification plans are also underway to enhance portfolio potential. Gross debt remained stable at ~Rs 44.1bn with a comfortable average cost of 8.5% (2Q: 8.64%).
