Phoenix Mills shares surge nearly 6.5% in weak market; here is why

Shares of The Phoenix Mills, the Mumbai-based real estate developer, were witnessing strong buying interest on Friday, July 25, in an otherwise weak market.

The stock rose as much as 6.5% to hit an intraday high of ₹1,542 on the BSE a day after it reported June quarter earnings post market hours. On the National Stock Exchange, The Phoenix Mills shares rose as much as 6.48%.

The Phoenix Mills on Thursday, July 24, reported consolidated net profit of ₹241 crore in the first quarter of current financial year (Q1FY26) marking an increase of 3.43% from ₹233 crore in the same period last year.

Its revenue from operations advanced 5% to ₹953 crore as against ₹904 crore in the year-ago period.

Phoenix Mills reported stable operational performance as its operating profit also known as EBITDA advanced 6% to ₹564 crore as against ₹531 crore in the same period last year.

The company's board also approved the proposed transaction for the buy-out of the 49% shareholding of Canada Pension Plan Investment Board in Island Star Mall Developers Private Limited (ISMDPL).

“The transaction is subject to approval of the Company’s shareholders and obtaining CCI and other requisite regulatory approvals. Post completion, PML’s ownership in ISMDPL will increase from 51% to 100%. The aggregate consideration payable to CPP Investments for the proposed transaction is agreed at approximately ₹5,449 crores, to be paid over 36 months in four tranches in compliance with applicable laws and regulations, with suitable adjustments, including as maybe necessary in case of prepayment of a relevant tranche. The proposed transaction will be implemented through a mix of buyback, capital reduction and dividend payout by ISMDPL and/or secondary purchase by PML and / or its affiliates,” Phoenix Mills said in a statement.

As of 12:21 pm, The Phoenix Mills shares traded 5.94% higher at ₹1,534 outperforming the SENSEX which was down 0.9%.