Phoenix Mills hits record high as it lifts stake in Island Star Mall unit

Shares of Phoenix Mills Ltd touched a record intraday high of ₹2,173.75 on 11 November 2026 on the National Stock Exchange, where the stock trades under the code PHOENIXLTD. The shares closed the day 2.05% higher, against a 1.44% rise in the Sensex, and outperformed the real estate sector by 1.8%. The move came as the company said it had raised its holding in its material subsidiary, Island Star Mall Developers Private Limited (ISMDPL), from 58.33% to 68.10%.

The stake deal in Island Star Mall

The increase follows an order of the National Company Law Tribunal's Mumbai Bench, which approved a selective capital reduction on 27 October 2026. Under the order, 3,25,69,360 fully paid-up equity shares of ISMDPL held by CPP Investments were cancelled and extinguished. Phoenix Mills will pay ₹1,350 crore to CPP Investments for the reduction. After the reduction, CPP Investments' stake in ISMDPL stands at 31.90%.

The valuation for the share purchase was set by a report from Bansi S. Mehta Valuers LLP. The company has said the promoter group has no interest in the transaction.

The deal is the latest step in a framework agreement signed on 24 July 2025, which is meant to give CPP Investments a full exit from its equity stake in ISMDPL. The first tranche was completed in November 2025, taking Phoenix Mills' holding from 51% to 58.33%. Once the current transaction is complete, Phoenix Mills will hold 100% of ISMDPL and make it a wholly owned subsidiary, so that it keeps all future cash flows from the entity without a minority shareholder.

Quarter ended 30 September 2026

In the second quarter of FY27, consolidated profit after tax rose 11% year on year to ₹424 crore. Net profit after minority interest was ₹326 crore. The annuity business, which earns recurring rent and mall income, now makes up about 91% of consolidated revenue. Its revenue grew 16% to ₹1,055 crore, with EBITDA up 21% and profit after tax up 31%.

• Total mall consumption reached ₹4,685 crore, up 25% year on year.
• Retail rental income rose 15% to ₹605 crore.
• Office segment income rose 64% to ₹89 crore, and office EBITDA rose 61% to ₹56 crore.
• Office occupancy improved to about 79% from 70% in March 2026.
• The St. Regis, Mumbai, recorded a 20% rise in average room rate and 80% occupancy.
• Residential revenue fell 52% year on year, which the company's figures show as a drag on the top line.

Varun Parwal, who handles investor relations, said the office portfolio is 79% leased and 54% rent-generating. Kailash Gupta said net debt fell by ₹179 crore during the quarter compared with June 2026.

Valuation and rating

At ₹2,173.75, the stock trades at about 58 times trailing twelve-month earnings. A rating service moved Phoenix Mills to Hold from Buy on 12 August 2026, and attributed the change to a reassessment of valuation and market conditions. The same service noted a mildly bearish monthly on-balance-volume reading and a cautionary weekly signal on its momentum indicator. The stock's previous record high was ₹2,168.65, set on 14 July 2026. Over the past year, the shares have risen 25.88% from a 52-week low of ₹1,465.30.

Delivery volumes rose 27.44% over the past month and nearly doubled against the five-day average on 11 November 2026.

What investors will watch

The capital reduction is expected to be completed in November 2026. The company must file the tribunal order with the Registrar of Companies, and the ₹1,350 crore payment is expected within 30 days of the certified copy being filed. Management expects rent-generating office occupancy to reach 70% by March 2027 and 80% by June-July 2027 as tenants complete fit-outs. It has reaffirmed rental growth guidance of 14-15% for FY27 and FY28. The company is also expected to bring the mall portion of its Rise project in Bengaluru online in 2027.