Neutral Phoenix Mills; target of Rs 1646: Motilal Oswal

Motilal Oswal's research report on Phoenix Mills

Phoenix Mills (PHNX) reported 1QFY26 revenue of INR9.5b, up 5% YoY/ down 6% QoQ (15% below estimate), while EBITDA came in at INR5.6b, up 6% YoY/1% QoQ (19% below estimate). Margin stood at 59.2%, up 48bp YoY/415bp QoQ (259bp below our estimate). Adj. PAT stood at INR2.4b, up 3% YoY/down 11% QoQ (36% miss). PAT margin was 25.3%, down 47bp YoY/124bp QoQ (822bp below estimate). In 1QFY26, group net debt stood at INR26.6b, down INR0.5b from 4QFY25

Outlook

We retain our rating to Neutral with a revised TP of INR1,646/share (earlier INR1673/share), implying upside potential of 14%.