Phoenix Mills Q1 Update: Retail consumption jumps 32%; office occupancy climbs to 72%

Mumbai-based real estate developer The Phoenix Mills Ltd on Wednesday (July 8) reported a strong operational performance in the first quarter of FY27, with retail consumption growing 32% year-on-year to ₹4,727 crore from its existing operational portfolio.

The company said retail performance was supported by healthy consumption trends across its portfolio, with double-digit growth across most assets. Select properties continued to undergo repositioning and premiumisation initiatives focused on improving tenant mix, customer experience and asset positioning.

During the quarter, Phoenix MarketCity Pune was relaunched as Phoenix Avenue of Stars, marking the next phase of the asset’s evolution with a refreshed brand mix aligned with Pune’s premium, experience-led consumption landscape.

ALSO READ | Phoenix Mills Q3 Update: Retail consumption up 20%, office occupancy at 77%

The commercial office portfolio continued to see occupier interest across key markets, with leased occupancy improving to 72% as of June 2026 from 70% in March 2026. The company completed gross leasing of around 1.9 lakh sq. ft. during the quarter.

Phoenix Mills said leasing activity remains encouraging, with advanced-stage discussions across assets providing visibility on further occupancy improvement.

The hospitality portfolio delivered strong performance during Q1 FY27, with The St. Regis, Mumbai and Courtyard by Marriott Agra reporting RevPAR growth of 15% YoY and 23% YoY, respectively. The performance was supported by healthy occupancies and double-digit growth in average room rates (ARR).

ALSO READ | Phoenix Mills Q4 Results: Profit jumps 50%, margins expand; dividend declared

In the residential segment, sales stood at ₹64 crore during the quarter, while collections were at ₹51 crore. The business continued to focus on monetisation of premium ready inventory.

Phoenix Mills said it remains focused on driving sustainable long-term growth through its retail-led platform, supported by consumption trends, office leasing momentum and hospitality performance. The figures are provisional and unaudited, and are subject to finalisation and audit adjustments.

Last month, brokerage firm Macquarie initiated coverage on Phoenix Mills Ltd shares. The brokerage initiated coverage with an "outperform" rating on Phoenix Mills with a price target of ₹2,100 per share, indicating an upside potential of 19.5% from its previous close.

ALSO READ | Phoenix Mills Q2 Update: Retail consumption up 13%, residential sales surpass FY25 levels

Macquarie said Phoenix Mills is India's largest pure-play name in premium urban consumption. It is operating 11 million square feet of Grade A malls in eight cities.

Phoenix Mills' growth runway is underpinned by three important factors as per Macquarie: As much as 50% of the mall gross leasable area (GLA) is under expansion, a 4x growth in office spaces, and over 900 key hotel buildouts by financial year 2030. The brokerage said Phoenix Mills' incremental capex of ₹12,000 crore annually is funded through internal accruals.

Shares of Phoenix Mills Ltd ended at ₹2,022.15, down by ₹51.00, or 2.46%, on the BSE.