Motilal Oswal upgraded Phoenix Mills to a ‘Buy’ rating and raised the target price by 22.% to Rs 2,044 from Rs 1,673. This implies a potential upside of up to 35% from current levels. The upgrade came as the company is scaling up the expansion of malls, along with an increase in consumption. Plus, the recent acquisition is likely to turn out beneficial, strengthening the high-quality retail asset portfolio.
During FY15-FY25, Phoenix Mills’ retail portfolio witnessed an 11% CAGR in consumption, supported by 7% like-for-like growth in the existing malls and the opening of new malls in Lucknow, Indore, Ahmedabad, Pune, and Bengaluru.
Additionally, the company’s retail rental income clocked a similar 12% CAGR during this period, mirroring the consumption growth.
“We anticipate this positive growth trend to continue, primarily driven by the ramp-up of new malls,” said Motilal Oswal. However, as of Q1 FY26, trading occupancy stood at 89%, down from 91% in March 2025.
Motilal Oswal on Phoenix Mills: New malls scaling up well
While new malls continue to ramp up well, Phoenix Mills is implementing measures to accelerate consumption at mature malls. These initiatives, along with a further increase in trading occupancy, will help Phoenix sustain healthy traction in consumption.
Phoenix Palladium (0.35 msft) is expected to be launched by FY26-27. With the acquisition of 22.1 acres in Coimbatore and Chandigarh Mohali in FY25, Phoenix is set to more than double its portfolio by FY30.
Motilal Oswal on Phoenix Mills: Acquisition to turn fruitful from year one itself
The company’s acquisition of the remaining 49% stake in Island Star Mall Developers strengthens its high-quality retail asset portfolio, unlocking long-term value.
“The transaction is expected to be earnings-accretive from the first year itself, with significant upside as rental income stabilises and the 2.71 msf incremental FSI potential is developed over the medium term,” said Motilal Oswal.
Plus, staggered payments over three years will keep the net debt-to-equity ratio below 0.4x for the next two years.
Motilal Oswal on Phoenix Mills: Office segment to increase fourfold
Motilal Oswal expects that Phoenix Mills’ office portfolio to surge 3 times by FY27. The company successfully delivered its first asset, Fountainhead, which was 0.8 msf, in Pune in the fourth quarter of FY22. This marked the beginning of a significant expansion of its office portfolio, which now totals 2 msf.
The portfolio is projected to increase nearly fourfold, reaching 7.1 msf by FY27 in a phased manner. This growth will boost rental income to Rs 600 crore by FY27, indicating a 71% CAGR over FY25-27 or a 3x increase. This trajectory underscores the company’s confidence in the long-term demand for office spaces within its mall-based developments.