Phoenix Mills Buys Out CPP Stake in Island Star JV; Posts Rs 2.41 Billion Q1 Profit

Phoenix Mills Ltd has approved a strategic arrangement to acquire Canada Pension Plan Investment Board’s 49 percent stake in Island Star Mall Developers Pvt Ltd (ISMDPL), gaining full ownership of the retail-led platform that includes Phoenix MarketCity Bangalore.

Key Highlights

- The Rs 5,449 crore deal will be executed over 36 months via buyback, capital reduction, dividend payout, and secondary purchase.

- Post-transaction, Phoenix Mills will hold 100 percent in ISMDPL, consolidating control over four major retail assets and two Grade-A office developments.

Financial Performance

- Q1 FY26 consolidated net sales stood at Rs 9.53 billion, up 5.4 percent year-on-year.

- Net profit reached Rs 2.41 billion, reflecting a 3.4 percent increase despite missing analyst estimates.

- EBITDA for ISMDPL touched Rs 617 crore, driven by strong rental income and retail occupancy.

Strategic Outlook

- The exit enables Phoenix Mills to streamline governance and unlock future expansion across Bengaluru, Pune, and Indore.

- Upcoming developments include 5.2 million sq ft of retail, 4 million sq ft of office space, and two hotels.

Sources: Moneycontrol, Economic Times, Smartkarma, CPP Investments, Phoenix Mills Investor Presentation.