The Phoenix Mills Limited (NSE: PHOENIXLTD) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Rashmi Sen
Varun
Analysts:
Shisher Srivastava — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to the Q3 and 9 month FY26 results conference call of the Phoenix Smells Limited. As a reminder, all participants line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation. Conclude should you need assistance during this conference call please signal an operator by pressing Star then zero on your touchton. Please note that this conference is being recorded. I now hand the conference over to Mr. Shisher Srivastava. Thank you. And over to you sir.
Shisher Srivastava — Analyst
Thank you Dhanish. Good morning everyone and thank you for joining us today. It’s a pleasure to connect with you again. During quarter three FY26 across retail, offices, hospitality and residential, we saw strong festive demand and consistent execution. Consolidated revenue for the quarter stood at the rupees 1,121 crore, an increase of 15% year on year, while consolidated EBITDA grew by 19% year on year to rupees 656 crore. Underscoring the operating leverage in our platform, retail delivered robust consumption growth of 25% year on year. During the festive quarter driven by broad based demand across categories in offices, we completed approximately 1.2 million square feet of gross leasing year to date corresponding to nearly 25% of our portfolio.
With a healthy pipeline of advanced stage discussions, our hospitality business benefited from strong occupancies and rate led growth while residential sales and collections continue to progress steadily on a year to date basis. Alongside this operating momentum, we continue to maintain a prudent and flexible balance sheet supported by strong operating cash flows and disciplined capital allocation. This has enabled us to fund our ongoing CapEx and the ISML partner buyout primarily through equity while keeping overall leverage at prudent levels. Our performance for the third quarter and the first nine months of FY26 reflect the consistency of execution across our platform and the quality of growth we are delivering.
The strength of our model lies not only in scale but in the productivity of our assets, capital efficiency and the resilience of our financial position. Even as parts of our portfolio undergo active transformation, the underlying business continues to compound supported by resilience, demand and disciplined execution across our portfolio. I will now hand the call over to Ms. Rashmi Sen to take you through the performance of our retail portfolio in greater detail. Rashmi, over to you.
Rashmi Sen
Thank you, Shisha. Good morning everyone. Phoenix Retail continues to set new standards through innovations, upgrades, new launches and meticulous brand creation. As you all know, we are upgrading our Phoenix Market, city centers and premiumizing the brand mix by launching flagship formats, marquee brands and differentiated concepts to further strengthen these centers, a key thrust in scaling experiential and FNB ecosystems which ensure that our assets function as full day social consumption and destination hubs. In parallel we remain deeply focused enhancing retailer productivity through carefully curated category mix and focused marketing initiatives and above all we continue to have a steadfast emphasis on enhancing profitability driven by consistent rental growth and operating efficiencies.
In Q3, FY26 consumption grew by 25% at Rupees 4992 crores with strong momentum across all categories, rental income grew by 13% year on year to rupees 573 crores while EBITDA increased 16% to rupees 585 crores, underscoring the operating leverage in our portfolio. For the first nine months of FY26, retailer sales reached 12,326 crores marking a year on year growth of 17%. To put this in context, our full year consumption for FY25 was rupees 13,750 crores and in the first nine months of FY26 we’ve already approached that level despite no new mall additions and with large parts of flagship Phoenix Market city centres under repositioning and upgrades.
This highlights the underlying productivity uplift across the retail portfolio. Moving to consumption trends, consumption performance during the quarter was broad based with growth driven not just by the festive demand but also by improved tenant mix and higher dwell times within the mall. Portfolio growth was led by Phoenix Mall of Asia Bangalore which saw 112% increase in consumption supported by 22% growth at Phoenix Palladium Mumbai, Phoenix Palacio Lucknow and 25% growth at Phoenix Mall of Millennium Pune. All other centers as well reported a positive mid teens consumption growth. From a category perspective, fashion and accessories grew 16% year on year while family and entertainment and multiplexes were up by 19% on the back of strong film releases.
During the quarter, F and B grew by over 11% as well while jewelry was up by 39%. This diversified performance reflects sustained consumer demand and the continued confidence of leading brands in the Phoenix platform moving to brand curation and leasing momentum. Turning to our retail partnerships, our premium positioning continues to attract marquee brands and as a result we continue to deepen our partnerships with leading global and domestic brands, particularly in categories that are driving higher trading density and rental yield for us. Phoenix Mall of Asia in particular has emerged as a preferred launch destination with notable openings including South India’s first Apple store, the largest Lego store in South India, Onitsuka, Tiger’s first concept store in India and several others.
We remain focused on improving portfolio productivity through a more curated retail mix including right sizing plan, brand refresh and selective upgrades. We are also introducing premium high performing brands across key categories such as fashion, jewelry, athleisure, watches, beauty and FNB which is beginning to reflect in better productivity metrics. A direct reflection of the churn and brand refresh can be seen in the notable improvement in trading densities at both PN3 Bangalore and PNC. At Phoenix Market City Bangalore, trading density grew to Rs 3,011 pspm for 9 month FY26 by 23% year on year with nearly 80% of the planned transformation already executed.
Trading density levels at this center are now approaching those of Phoenix Palladium Mumbai which have been about 3400 to 3500 PSPM between FY23 and 25. Similarly, PMC Pune recorded a 14% increase to rupees 2214 PSPM with 19% of its GLA under transformation and over a third of new brands already operational. These results demonstrate immediate value unlocked through our asset upgrading initiatives. Beyond retail, we are integrating active lifestyle elements into our malls. A key example is the Phoenix Racquet club launched in December 25th at Phoenix Palladium Mumbai. Located on top of the mall, the facility integrates paddle and pickleball courts with open air cafe and community spaces creating a lifestyle led community driven destination with a luxury retail environment.
In just its first month of operations, the racket club welcomed over 1000 customers, attracted sponsorships and generated approximately 50 lakh in revenue while also meaningfully increasing engagement and repeat visits at the center. Our expanded FNB ecosystem comprising cafes, restaurants, dining concepts continues to act as a powerful catalyst for engagement. Our Gourmet Village at Phoenix Palladium, a two level dining and entertainment destination launched last year, has validated this model by increasing repeat visits, lengthening dwell times and boosting same store sales growth across the center. Having proven the concept, Gourmet Village now serves as our blueprint for similar rollouts across Phoenix Portfolio, especially Phoenix Palacio PMC Pune, PMC Mumbai and PMC Bangalore.
Alongside growth, we maintained a strong focus on capital and cost efficiency with marketing and energy costs serving as key levers for improving asset level returns. One such is example in the reduction of our retail marketing spend by 15% during Q3 FY26. We achieved this by pivoting towards high impact targeting initiatives and deeper collaboration with our brand partners. By shifting to sponsored activations such as Sephora Christmas, Armani’s Diwali Decor at Phoenix Palladium, sharper targeting of high performing brands and leveraging influencer led hyperlocal strategies, we have proven that we can do more with less. Despite the leaner spends, we saw positive footfalls delivered higher consumption growth and meaningfully scaled revenue share income.
Our marketing is not just cost efficient, but materially more effective at driving both engagement and monetization. We’ve also made meaningful progress on sustainability and cost efficiency. Renewable energy now accounts for 30% of our retail energy requirements for Common area and H vac, up from 20% during Q3 last year. We are currently in advance discussions with multiple renewal energy providers to further scale adoption across the portfolio. Looking ahead, we continue to see good visibility for double digit growth across our retail portfolio in FY26 supported by strong consumer demand trends, healthy retailer performance and ongoing portfolio enhancement.
With a significant portion of our portfolio coming up for renewal over the next five years, major expansions across our existing Phoenix assets and a secured launch pipeline through 2030, we are well positioned for sustained value creation through disciplined execution, leasing and productivity enhancement. I will now hand the call over to Varun to take you through the next set of highlights.
Varun
Thank you Rashmi Turning to Offices, Our focus continues to be on building a differentiated, high quality portfolio that complements our mid steel developments. We are prioritizing well designed, sustainable workplaces that benefit from being embedded within an active retail and lifestyle ecosystem. Over the last two years, this strategy has resulted in a significant expansion of our office platform. From a base of around 2 billion square feet across two cities in 2023, we have scaled now to near the 5 million square feet of completed office spaces across four cities today. In fact, during this year in Pune we received occupation certificates for the entire Millennial Tower complex.
We also achieved the prestigious US GBC LEED Platinum certification in November 25th for millennial towers in Pune. In fact, as a key strategy of our sustainability initiatives, all our new office developments are US GBC LEED certified, reflecting our emphasis on sustainability and long term asset quality. Leasing activity for offices through the year has been very healthy and increasing. By December 25, we have achieved nearly 1.2 million square feet of gross leasing across our office assets in Mumbai, Pune, Bangalore and Chennai. Occupancy at our stabilized assets in Mumbai and Pune increased to 76% from 67% at the end of March 25 and in our recently completed developments across Pune, Bangalore and Chennai lease Occupancy now stands at about 41% with advanced discussions providing good visibility for continued ramp up across this portfolio.
For the first nine months of FY26, our operational office portfolio comprising of our assets in Mumbai and in Vimannagar, Pune generated income of 162 crores with EBITDA coming in at 103 crores. With the leasing progress achieved during the year, the office portfolio is now entering the transition from a build and lease phase into a rental monetization phase with newer assets expected to begin contributing meaningfully to earnings and cash flows from FY27 onwards. Turning to our quotas portfolio, the business delivered a strong performance during the period despite tough macroeconomic sentiments. For the first nine months income stood at rupees 423 crores reflecting an 8% year on year increase while EBITDA meaningfully grew much ahead of revenue at 16% and reached 190 crores.
Our EBITDA margins for the two hotels were very healthy at 45% with an improvement of 300 basis points over the same period. Last year the St. Regis Mumbai drove this EBITDA improvement operating at a healthy 85% occupancy for nine months of financial year 26 with average room rates crossing rupees 20,000 up 8% year on year. Growth was driven by a deliberate shift towards higher easing segments such as retail led demand and celebrations, strong performance in events and FNB and a continued focus on experience led differentiation. This reinforced the role of our hotels as ease enhancing extensions of our mixed use ecosystem.
Kotelbia Marriott Agra delivered a resilient performance despite the softer city environment, maintaining strong occupancies and market share during the peak season. I will now hand the call over to Kailash to walk you through our residential portfolio highlights and broader financial results.
Shisher Srivastava — Analyst
Thank you. Varun. Let me brief on the residential piece. In the residential business, our sales and collections momentum sustained in the first nine months. Gross booking for the first nine months were around 412 crore. Revenue recognized for the nine months is only 273 crore. So essentially 180 crore is likely to be booked in the Q4 subject to the registration and other documentation completion. This is primarily by one Bangalore west and the Kesaku pricing was in excess of around 29,000 per square feet led by the strong demand in the market. This performance reflects continued end user demand for premium well located residential development and the strength of our differentiating product offering even in the selective market environment.
On a financial overview at a group level, revenue from Operation for the quarter stood at 1121 crore representing a 15% year on year increase while EBITDA grew by 19% to rupees 656 crore. Net profit for the quarter was 276 crore, up by 4% year on year basis. Operating cash flow after working capital and taxes and interest stood at 1508 crore for the nine months, an increase of 24% year on year basis. Operating cash flow from our core businesses excluding residential was 1333 crore, up by 14% over the same period last year. Capital expenditure towards construction and ongoing projects during the first nine months amounting to rupees 722 crore.
Moving to on the update on CPP transaction so this transaction which we have announced in July 2025 and then post that we have received necessary approvals and some CP conditions. So first tranche payment has been made for 1257 crore in November 2025. With this PML stake in ISML standard now 58.33% up from 51% earlier, our balance sheet positions remain prudent. Gross debt at 31st December stood at 5200 crore with overall liquidity improving to 1858 crore. The net debt as on 31st December was 3344 crore. Net debt to annualized EBITDA remained at a healthy at 1.3x during the period.
We also reduced our average cost of debt from 7.68% to 7.62% in December 2025. Sustained operating cash flow, A prudent balance sheet and a disciplined capital allocation framework provide us the flexibility to continue investing in high quality assets while maintaining strong cash, strong credit metrics and balance sheet flexibility. As we move forward, our focus remains on disciplined execution and productivity across the portfolio and converting the scale we have built into sustained earning and cash flow growth. We can move to the Q and A now. Hi, we can commence with the Q and A now.
Questions and Answers:
operator
Thank you so much. Ladies and gentlemen, we’ll begin with a question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question comes from the line of Puneet from HSBC Bank. Please go ahead.
Varun
Yeah, thank you so much and congratulations on great performance on the retail piece. Can you talk a bit about what’s happening in Mall of Asia consumption level numbers off the charts but rent still lagging and it looks like it’s much low. You’re still at 88% occupancy. How should one think about the potential for growth on the rentals for this part of the portfolio?
Shisher Srivastava
Hi Puneet, thank you so much for your question. And yes, I think more of Asia’s performance has been phenomenal. We launched a Mall in October 2023 and from there to today it has nearly reached the levels that we see in Phoenix Palladium. We have seen several first time global brands that have opened their stores at Phoenix Mall of Asia within our portfolio itself. And I will hand the call over to Rashmi now to share some key highlights on the type of brand mix that we have seen and the upcoming new retailers that are expected to open up in Phoenix Mall of Asia going forward.
Varun
So Mall of Asia has been seeing a great trajectory. It’s built up as a destination center really fast. I think all factors have contributed to the exponential success of the center that we are seeing. Bangalore as a city has been thriving. It’s a great location. When we acquired that land parcel, we knew that this is the location where we have to build a Mall of Asia. The architecture and interiors that we’ve done for the center, I mean the response that we received from the city, from the retailers who visit across the globe, they rate it as one of the best centers that they are seeing in recent times that has been built up.
But above all I think it’s always the tenant mix. I think the tenant mix that we’ve achieved at that center is extraordinary and we keep adding to that extraordinary tenant mix. In the recent times we’ve opened the flagship store of Apple, Rolex, Onitsuka, several other BTL brands that have opened over the last six months. And not only that, we’ll continue to see a lot of Maki brand openings over the next three to four months as well. And so this center continues to be on a great growth trajectory going forward. And we’ve seen a very positive rental growth trend as the center along with consumption and we’ll see a lot more of it in the coming quarters as well.
Rashmi Sen
So in fact Punil just putting some numbers for the benefit of everyone on the call. Consumption at Mall of Asia reached 732 crores for the third quarter. It is up 112% year on year while renter also has grown by 58% and quarterly renter for this asset reached 62 crore. In fact occupancy right now is at 88%. And typically you would see for the rest of our portfolio, all new malls are at 95% or thereabout in those trading levels. And even in, even in more of Asia, you know in the coming next two quarters we are going to see occupancy stabilize at the 94, 95% level going forward.
So we are hopeful that the consumption performance should continue going forward as well.
Varun
So if I look at consumption it is just about 7% lower than high Street Phoenix Palladium. But rents, rental income is almost half right. Do you think it can towards the same as High street solidum or do you think structurally it will remain lower there?
Shisher Srivastava
I think structurally Puneet, you have to look at consumption and rent trajectory converging over a three to five year period. So there are times when we start off with a particular rental contract, the fit strength keeps in immediately whereas brands consumption take time to scale up. In Phoenix more of Asia, the rents of course started very strongly in the first year. We were nearly 160 crore of annual rental last year. And they said also we are seeing rents growing strong rate now. Consumption for many of these brands is carrying up sharply and we will see rents also align with this rising consumption growth in the coming quarters.
Varun
Secondly Rashmi, on the broad portfolio, you know you’ve clearly outperformed the rest of the market. On the retail side, you know all the retailer numbers were quite poor and you guys have done extremely well. If you can talk a bit more about it, how much of it has to do with footfall versus value growth?
Shisher Srivastava
So that’s a good question. So firstly, a lot of our retail partners tell us that their performance in our portfolio is an outlier even though at a broad category level for them the numbers may look very different. And if you look at the flagship stores across all the listed retailers we have, all of them have shown remarkable double digit growth. So that was talking about the listed retailers. Secondly, we are seeing that growth has been spread across all categories. So whether we talk about the fashion category, gold jewelry category, you talk about electronics also. I think the other parameter which has added to exponential growth this quarter one is the festive season.
Of course you see a sharp growth in numbers in Q3, which has the Diwali and Christmas festivities, you see this every year in our portfolio and generally in the market. What has further added to the growth is the strong repositioning that we’ve been doing in our centers whereby we have churned out a lot of low performing categories. For example, some of the malls where we had hypermarkets which were very large, 30,000 60,000 square feet. And the trends has changed towards shopping at such large hypermarkets and churning them and converting them into high trading departments to stores or converting part of that area into high trading in line flagship stores.
That has impacted the overall trading as well. And further, we’ve had a lot of new Maki brands opening across our portfolio this quarter and some of those individual brands have also done remarkably well adding to the growth further.
Varun
Okay, and this is across the portfolio, right? I mean even the your older across.
operator
The portfolio across Chennai Kurla across the portfolio. Okay. Next is if you see our repositioning efforts in, you know we’ve already we are halfway through the asset upgrades at Phoenix Market City Mumbai and Phoenix Market City Pune and some of the other centers as well. We have, we opened the Gourney Village here which is a FNB destination at Phoenix Palladium. And this is a very successful concept. While now we are taking this concept to other centers. But in some small ways we have started making FNB changes across all our malls and marquee FNB brands coming in. So we are seeing an impact of that FNB change also across all our malls.
In terms of marketing strategies and marketing plans, we’ve really been evolving. We have an excellent marketing team and there are a lot of things we’ve been experimenting with on our marketing side side. And we see a huge impact on the consumption side on account of the marketing initiatives we’ve taken. We are constantly focused on increasing the consumption of our brands and all activities and activations we do are in that direction. And so you know, the inputs and our strategies are resulting in those outcomes.
Shisher Srivastava
Understood, that’s very helpful. And secondly Varun, if you can talk about where are we in terms of launching Kolkata Residential and what is the plan for Thane now?
Rashmi Sen
So Puneet, on Thane we have planned a retail led mixed use development. We acquired this land parcel back towards the end of 2023, November 2023. And from then to now we have planned, I would call it a fabulous mixed use district here with a destination retail mall with an area of approximately 1.3 to 1.5 million square feet in terms of leasable area office tower, a grade A office tower for the growing district of Thane and the huge commercial demand that we are seeing emerging there. And you know, luxury event centric office. Sorry, how big office offices right now, Puneet, they are between half a million square feet to 1 million square feet.
The overall FSI potential for Thane is in excess of 4 million square feet. So we are you know optimizing what we can add and maximize what we can maximize in terms of the FSI consumption here in Thane without compromising on the experience that each user will experience when they come to this midst use platform.
Varun
Okay.
Shisher Srivastava
If I just add on Puneet, we are right now in the final stages of obtaining securing our approvers. We have you know, we are awaiting the environmental clearance and we at the moment have commenced, you know, demolition activities of the old the existing structures on the Thane site. And in the next two or three months we also expect to commence excavation and the subsequent construction activities. Tenders are already out for excavation and we are also, you know very soon going to be launching the tenders for the severe contract for constructing the entire development at one go.
Varun
That’s helpful. Thank you so much. And Kolkata, when should you expect the launch? Kolkata Residential? I think we are in the final stages of approvals as well as design fine tuning. I think in the coming two quarters, you know we’ll come back and update you on the launch timeline of Kolkata. Thank you so much and all the best.
operator
Thank you. Our next question come from the line of pritesh it from Access Capital. Please go ahead.
Varun
Yeah just thank you for the opportunity. So just carrying forward the previous conversation on lag in consumption and revenue that we are seeing in most of the assets and in fact if I look at rent to consumption ratio, it’s 11% this quarter which was I think lowest since we have seen in 2014. So if you can explain me what’s happening here. You talked about eventually it converges but does everything get converted? Because I understand you know, jewelry brands, you know everyone might not be at MG+ Variable so you can correct me if I’m wrong. So, so just some, some insights and thoughts on, on that.
Shisher Srivastava
Sure. Pradesh, why don’t aside let me you know take this question. 1 British Irene the consumption growth during the quarter was very strong and like Rashmi mentioned in her comments, all categories contributed to the strong consumption growth including fashion where we combine a number of categories and it accounts for 50% of our consumption area. We in fact saw strong 16% growth in consumption. And if I especially exclude the high trading density categories like gold, jewelry and electronics, the underlying growth is in very high double digits and this is in fact the strongest growth that we have seen per se in the portfolio over the last five years.
Rents per se at times are a lagging factor. We see rent growth happening when we enter into new contracts and, and the retailers start paying the fixed rent from day one while their consumption scales up. Over the last two years we have had very strong growth and as we had indicated also earlier during this year rent growth has sequentially improved as we have opened up new stores and revenue share has brands have crossed the revenue threshold and started contributing to revenue share.
Varun
So how much time. I think in between from quarter to quarter and especially quarter three if you see quarter three is a quarter with you know more emphasis on high trading density categories such as gold, jewelry etc. And consumption versus rent on in quarter three per se has also seen a bit of a divergence. But when you annualize it, consumption and rental growth is actually very near to each other over a three year period.
Rashmi Sen
Sure, sure, got it. Fair enough. And second on this trading occupancy ramp up at market city, Pune and Bangalore by when do you think we should should be back at 95% considering these are already like well leased out. So a quarter or from here, couple of quarters. You know some timelines if you want to attach to that.
Shisher Srivastava
Absolutely Pritesh. I think we are on track to cross 90% trading occupancy in both Bangalore and Pune by March 2026 in line with our original timelines. And we have a lineup of some great first time brands that are entering the city such as Ikea, Uniqlo etc that are opening their first stores in the city of Pune. And Bang Road will also have a similar trajectory. I think you should expect to see the 95% levels by the middle of by the middle of FY27. In fact 10% of overall area is already under fit out at this point in time.
So in a staggered way we will see the launches happening in the next three to six months.
Varun
Sure that’s helpful. I have a couple of more but I’ll jump back in queue and take it later. Thank you. All the best.
operator
Thank you so much. Our next question comes from the line of Murtuja Asiwala from Kotak Securities. Please go ahead.
Varun
Hi Varun, Just to delve deeper into this lead lag between the consumption growth and the rental growth, can one attribute it entirely to the mix that kind of changes? Plus the fact that you could have some malls in a ramp up phase and therefore there are minimum guarantees. So we don’t see a good correlation between consumption growth and rental growth. Just to understand that better, let’s say you have a certain amount of consumption growth on a quarterly basis. Is it that a strong consumption growth on a mature mall would reflect in better rentals in a Subsequent quarter, like is there a 1/4 reset or it’s a straightforward percentage of consumption.
So it’s almost instant set of repricing. So you know, that’s the first question just want to understand because it’s obviously been coming up a couple of times in terms of, you know, consumption growths ahead of rental growth and vice versa. So just want to understand that. And then I have another one on the commercial piece.
Shisher Srivastava
Right. So I think thank you Matuza for that and I will just take a step back to also address this question as well and bring out one of the points that Rashmi spoke about earlier in our opening remarks. But probably we need to dive a bit more deeper on that aspect. I think first of all, strong consumption growth is very important in terms of getting the right set of brands to come to the mall. Both of the myths of both the experience factors that we drive through our marketing events and our fine dining destinations that we open up as well as the entertainment centers that drive this sticky footfall as well as in terms of the high trading necessity categories and the new upcoming fashion categories that one opens up at the mall.
Now strong consumption growth gives a great platform for our leasing teams to attract the right set of new brands to take space in the mall at better renters or improved improved revenue share percentages. And across our mod portfolio today we have in the next three years over 50% of the area going to be up for renewals and repricing. That provides a great opportunity for us to reorient some of the low trading necessity stores as well as renegotiate on renters as well as the revenue share that we are driving and also add new experiences to the mall.
So this repositioning exercise is a continuous exercise. High consumption growth actually facilitates this conversation that our leasing teams do across malls. And does that address your question to some extent?
Rashmi Sen
To an extent. But I want to understand. Let’s assume, let’s say let’s take one store for instance and it is doing 100 rupees of consumption and you are taking a 15 rupee rental. Let’s say in the next month the consumption moves to 200. Does that simply imply that the rental would move to 30 from 15? Like is that repricing instinct or there is a lead lag to that repricing.
Varun
That’s a. Okay, so let’s, let’s connect. Consumption is 100 typically and a mall that is a started off, you see renters being at about 11 or 12 rupees.
Shisher Srivastava
Okay. Now as consumption grows from say 100 to 200. And we typically expect consumption to double in our malls over a period of four to five years. This revenue, this renter that we are seeing would naturally grow from 11 to 12. It grows to about 22 to 24. And with tweaks in the revenue share with higher revenue share etc coming in, we are able to drive this towards 2728 rupees. So the revenue share increases from an initial 11 to 12%. It goes up to 14 to 15% as we tweak and fine tune the brand mix and the commercial agreement, economic agreement that we have with those particular brands.
Historically if you see FY13 to today we have seen consumption growing at a 14% CAGR and our renters keeping pace with that consumption growth over the last 12 and a half years. Okay.
Varun
Also a second question on the office assets. You’ve talked about the new assets doing 41% but you’ve excluded out two towers in Pune, about a million square feet which got their OC in December. Any sense on what is the pre leasing for those towers currently?
Shisher Srivastava
I think we in fact have a very strong pipeline for those towers as well Murtuja. And you know we have a significant pipeline which is in final closing stages where we have agreed on the commercials and the documents are being negotiated and executed. Give us a quarter more and we will come back to you with you know, very strong leasing updates for the overall portfolio. Yes.
Varun
All right, thanks. Thanks so much.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participant, we request you to kindly limit your question to two questions per participant. If you have a follow up question, please rejoin the group. Our next question comes from the line of Gaurav Khandelwal from JP Morgan. Please quit.
Varun
Thanks for taking my questions. I’ve got a couple of those. My first question is how much of the consumption strength in this quarter was due to GST cuts? And could you also give us some color on how our consumption trends different for the listed and unlisted players which operate in your mall assets?
Shisher Srivastava
Thank you Gaurav. Those are very interesting questions. I think on the GST cut we have, you know, evaluated our brand portfolio and the impact that we have is I would say it’s a sentimental, sentimentally positive impact. But otherwise it is not that material. A needle mover in our perspective. It has I think the prices of goods, especially when you look at clothing etc. The impact is on a 3 to 4% level and that really, you know, is not Moving the needle much per se. To your other question. I think you know it’s. It’s better to compare say listed retail performance to what they are reporting at their portfolio level.
And we have a number of large listed players with their flagship marquee stores across our portfolio. And we believe that the performance that they are seeing in our stores versus the overall portfolio performance that they are reporting. Our stores have been demonstrating very strong sustained growth over a period of last several quarters within the brand mix.
Varun
Got it. Thank you. And just a housekeeping question. Your tax rate in last two quarters have increased to almost 24.6% which is much higher than let’s say the preceding 812 quarters. How should I think about the ongoing tax rate from here for next quarter and next year? Does it normalize closer to 25% levels?
Shisher Srivastava
So Kailash here, you know the. I, I don’t think this is the right way to compare the tax rates in every quarter because there would be some adjustment item which keep happening in every quarter. So that doesn’t. So you should always look at the nine months or you know YTD numbers which will give you better color to the text numbers. If you see the YTD nine months for current year it is around 23.7%. You know, on a blended basis. Now this year somehow the you know the two component which is the hotel which was actually having a huge accumulated losses earlier has been completely exhausted.
So now that has come into a full tax regime which is 25% and even the residential sector, you know, business which comes to a full tax regime. Otherwise the all the, you know, rental which we recover from either commercial assets or, or the retail is normally having a tax in the range of around 18 to 90%. So my suggestion would be that you for the modeling purpose I think 22 to 23% range will sustain in future. 25% could be in one of the quarter but that is not something which will happen for the entire year.
Varun
Got it. Thank you. Very clear. Those were all my questions.
operator
Thank you. A nice question come from the line of Grish Chaudhary from Avidis Park. Please go ahead.
Varun
Yeah. Hi. Morning. Thanks for the opportunity. Firstly have a question on the. Like you mentioned on the repositioning exercise for malls like Bangalore, Pune and Chennai. Right where there’s a convergence which is expected in the next three to six months. What I wanted to specifically understand is what’s the repricing you have been able to achieve versus the earlier brands in the same spaces.
Shisher Srivastava
Sure Girish. So in fact let Me, you know say in Phoenix Market City Bangalore for example, we have repriced almost 35% of the overall Leaseburg area of the mall. And if I just compare the increase in the fixed rent compared to the total rent that we were seeing previously, we expect to see a 35 to 40% increase in the area that we have optimized in Phoenix Market City Bangalore. Similarly in, similarly in Pune as well we have optimized and you know, refreshed almost 40% of the area. And there the overall impact that we are seeing is about 25%.
Varun
Great. So this as and when the trading occupancy increases. Right. Which is when we’ll start seeing the reflection of this repricing in our numbers.
Shisher Srivastava
Yes. So in fact Grish trading occupancy started going back up in quarter three of this year. We had hit a low of 80% trading occupancy during quarter one. And now Phoenix Market City Bangalore and Pune are back to about 85, 86% trading occupancy level. This should now naturally increase to about 90% by March 25th. And then in, you know, June July of 2026 we should be back at about 94, 95% level. Yeah, I was just completing the point that from, you know already we are starting to see a significant improvement in the trading density. So Phoenix Market City Bangalore has reported a 30% growth in the trading density for quarter three.
And Phoenix Market City Pune, Chennai have seen a 20% and an 18% growth in the trading density.
Varun
So what I was also as a follow up asking is that for the incremental 10% which is still there. Right. Convergence from least the trading occupancy moving up. So this 35% for example for a mall in Bangalore, you will start seeing those reflecting in the numbers. Yes, I, I think you’ll see the full impact of it in the numbers during FY27. Girish. Got it, got it. Great. And the second question is that you also mentioned about a 50% renewal point opportunity available in the next three years. Right. So there what’s the repricing or MTM opportunity available? Gracious. We have seen anywhere between a 20 and a 30% improvement. But that is driven not just by repricing of the existing brands but also in terms of how we have optimized the area given to existing brands and new brands as well as the economics that we have been able to negotiate with the incoming brands. So this is what we have done historically and as we go ahead and renew the area going forward, we’ll keep you posted on, you know, how the rents are moving. So this 50%, which is, let’s say, annualized 16, 17% per year, is over and above the normal renewal rates. I mean, norms. No. So this 50%, I would say greesh, is the contractual, you know, expiry that are coming up over and above this. We may from time to time do targeted churns and optimizations in consultation with our brand partners. And that is in addition to what is there, what is available to us contractually. Thank you, Varun, and all the very best. Thank you.
operator
Thank you. Ladies and gentlemen, due to the time constraint. That was the last question. I would like to hand the conference over to the management for the closing comments. Thank you. And over to you, team.
Shisher Srivastava
Thank you so much, everyone for joining us on today’s conference call. We look forward to seeing you next quarter. Thank you.
operator
Thank you so much. Ladies and gentlemen, on behalf of Phoenix Mills Limited, that concludes this concept. Thank you for joining us. And you may now disconnect your name.