Motilal Oswal Sees Phoenix Mills Reaching Rs 2030

Phoenix Mills Sees Strong Growth in Latest Quarter

Phoenix Mills, a prominent player in the retail and entertainment industry, has reported impressive financial results for the fourth quarter of fiscal year 2026 (4QFY26). According to the company's latest earnings report, revenue saw a significant year-over-year (YoY) growth of 21% to INR12.3 billion. This growth was accompanied by a substantial increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) of 34% YoY to INR7.5 billion.

The company's operating margin expanded by a notable 570 basis points (bp) YoY and 230 bp quarter-over-quarter (QoQ) to 61%. Adjusted profit after tax (Adj. PAT) surged 50% YoY to INR4.1 billion, with the PAT margin standing at 33%. For the fiscal year 2026 (FY26), revenue grew 16% YoY to INR44.2 billion, while EBITDA expanded 22% YoY to INR26.4 billion. The margin in this segment increased by 295 bp to 60%. Overall, Adj. PAT jumped 29% YoY to INR12.5 billion, with margins at 28%.

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The outlook for Phoenix Mills remains positive, with the office portfolio continuing to grow well and the Hospitality segment demonstrating resilience. Motilal Oswal, a leading research firm, has maintained a BUY rating on the stock with a target price (TP) of INR2,030, valued on a sum-of-the-parts (SoTP) basis.