Phoenix Mills shares rise after strong Q1; JPMorgan highlights why downside risk is limited

Shares of Phoenix Mills Limited are trading with gains of over 3% on Thursday, July 9, a day after the company announced its business update.

Brokerage firm JPMorgan gave the company an 'Overweight' rating, setting the target price at ₹2,000, highlighting that the 32% consumption growth beat market expectations of 25%.

While recent investor discussions flagged some concern that easing gold prices could weigh on consumption growth and eventually rentals, JP Morgan noted that jewellery accounted for 16% of total consumption against just 2% of the trading area. The brokerage noted that the company's share of profits on rentals from jewellery tenants was relatively limited, which it believed capped downside risk.

The company recorded total consumption of ₹4,727 crore in its retail portfolio, marking 32% growth in consumption year-on-year, largely driven by rebranding and premiumisation, with the company working to improve tenant mix and customer experience, according to a regulatory filing.

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

It said that the rebranding of Phoenix MarketCity Pune as Phoenix Avenue of Stars was aimed at attracting more premium customers to further enhance the consumption rate.

The commercial office sector grew, with lease occupancy rising to 72% as of June 2026, up from 70% in March the same year. Office space of 1.9 lakh sq. ft was leased out during the quarter.

Also Read: Phoenix Mills shares surge over 8% as retail consumption hits all-time high in FY26

The hospitality sector recorded double-digit growth as well, with the St Regis Hotel in Mumbai experiencing 15% year-on-year growth in revenue per available room. The company's Courtyard by Marriott hotel in Agra saw a growth of 23% year-on-year.

In the residential real estate segment, the company saw sales amounting to ₹64 crore, with collections in the period staying at ₹51 crore. The company said its focus remained on selling ready-to-move-in, high-end inventory.

Also Read: India could see stronger market performance in second half as earnings recover: UBS

The stock gained as much as 3.4%, hitting an intraday high of ₹2093.00 on Thursday morning, but has since pared some of its gains and was trading at ₹2090.50, as of 11.23 am, still up nearly 3.4%. The shares have surged about 11.8% so far this year, and close to 37.8% over the last 12 months.