Phoenix Mills Ltd Management Discussions

Economic & Market Environment

Global Macroeconomic Overview

The global economy grew by 3.3% in

2024 (IMF), showing resilience despite a period of disruptions. Growth has lacked strong momentum, and concerns of a slowdown are emerging as governments realign their policy priorities to address evolving global challenges. Trade tensions and policy uncertainty are expected to weigh on global economic activity in 2025. The outlook for 2025

is marked by cautious optimism amid persistent uncertainties. Reflecting this, the IMF now projects growth of 2.8% in

and 3.0% in 2026, revised down from its earlier forecast of 3.3% for both years.

The global trade outlook has also weakened. The World Trade Organisation (WTO) expects global merchandise trade volumes to drop marginally by 0.2% in 2025, before recovering by 2.5% in 2026. Trade flows remain under strain due to persistent inflationary pressures, tighter monetary policies, and heightened geopolitical tensions in the near term. Sluggish demand, particularly in advanced economies, and supply chain adjustments in response to global risks are likely to dampen trade flows and weigh on worldwide growth and investment sentiment across sectors.

As global trade faces a potential slowdown, emerging economies like India and Brazil are poised to benefit from the shifting of export flows away from traditional centres such as China.

India, in particular, enjoys a strategic advantage: a strong domestic demand base and relatively low reliance on merchandise exports, shielding it from the immediate impacts of rising tariffs. Indias services-led export portfolio adds resilience amid evolving trade patterns.

Indias economy is set to grow at 6.2% in 2025 and 6.3% in 2026, outpacing the global average and emerging market peers. (IMF)

Consumer & Retail Sentiment Global Consumer Sentiments

According to Ipsos, the Global Consumer Confidence Index slipped by 0.4 points in April 2025 from the previous month, reflecting rising concerns over inflation, trade tensions, and broader economic uncertainty. Confidence levels fell sharply in advanced economies such as the United States and parts of Europe, while emerging markets remained relatively stable. Consumers expressed increasing caution regarding their financial outlook, contributing to more restrained spending behaviour across major sectors.

The IMF projects Indias GDP growth at 6.2% for 2025 and 6.3% for 2026, well above the global average and emerging market peers.

Robust domestic demand, continued reforms, and sustained infrastructure investment and development support this outlook. Indias lower reliance on merchandise exports and its active services sector contribute to stability during global trade interruptions. With sound macroeconomic fundamentals and steady policy support, India is expected to be a major driver of global economic growth over the medium term.

In light of emerging headwinds and signs of a potential moderating growth momentum, the Reserve Bank of India (RBI) revised its GDP growth forecast for 2025-26 downward by 20 basis points to 6.5%, compared to its earlier projection in February. To support economic activity and ease financing conditions, the RBI has undertaken a series of rate cuts this year, most recently in June 2025, when the Monetary Policy Committee reduced the repo rate by 50 basis points to 5.5%. This cumulative easing of 100 basis points since February signals a shift in policy stance towards supporting growth over inflation amidst a complex global environment.

Indias GDP Growth

Projections for 2025-26

RBI cuts repo rate to 5.50%, shifting focus from inflation control to growth support.

Headline inflation softened at the beginning of 2025, primarily driven by a sharp decline in food prices. With rabi crop concerns easing and the second advance estimates indicating record wheat production and higher pulse output compared to last year, food inflation is likely to moderate further. This trend is supported by strong kharif arrivals and a notable fall in inflation expectations over the next three and twelve months, as reflected in recent surveys. The decline in crude oil prices has further strengthened the disinflationary outlook. As a result, Consumer Price Index (CPI) inflation for 2025-26 is now projected at 3.1%, revised downwards from the earlier projection of 4.0%, with quarterly estimates at 2.1% in Q2, 3.1% in Q3, and 4.4% in Q4.

Domestic demand remains strong, supported by improving consumer sentiment, resilient income trends, and a favourable outlook for key sectors. Private consumption supported by rising rural demand, and fixed investment, driven by buoyant government capital expenditure, continue to propel economic activity.

Consumer Price Index (CPI)

Inflation Projections for 2025-26

As global trade faces a potential slowdown, emerging economies like India and Brazil are poised to benefit from the shifting of export flows away from traditional centres such as China.

India, in particular, enjoys a strategic advantage: a strong domestic demand base and relatively low reliance on merchandise exports, shielding it from the immediate impacts of rising tariffs. Indias services-led export portfolio adds resilience amid evolving trade patterns.

Indias economy is set to grow at 6.2% in 2025 and 6.3% in 2026, outpacing the global average and emerging market peers. (IMF)

Euromonitor Internationals "Top Global Consumer Trends 2025" highlights how consumers navigate this environment. Key emerging behaviours include strongly emphasising "Wiser Wallets": where strategic, researched spending replaces impulse buying and a marked preference for brands offering credible, tangible value. At the same time, health, wellness, and sustainability remain powerful drivers of purchasing decisions with growing demand for preventative healthcare and eco-conscious and cost-effective products. Moreover, with increasing information overload, the "Filtered Focus" trend underscores the demand for clear communication, simplified experiences, and trusted interactions.

According to Deloittes Global State of the Consumer Tracker, while consumers in several advanced economies displayed resilience, there was growing caution around discretionary spending, particularly in travel, dining, and luxury goods. A notable trend was the "flight to value," with consumers prioritising essentials and reevaluating spending habits amid rising living costs.

Consumer confidence in India remains resilient despite global headwinds, with private consumption expenditure on an upward trend, suggesting sustained consumer confidence and healthy demand. Strong government spending and robust performance across sectors such as construction, financial services, and trade are reinforcing this demand. Significantly, easing inflation has further strengthened household purchasing power. Notably, according to official MOSPI data, Indias headline CPI inflation stood at 3.6% in February 2025, eased to 2.1% in June, and declined further to 1.2% in July: its lowest level in over eight years. This sharp decline, mainly driven by food prices, has provided additional tailwinds to consumption activity and underscores the durability of Indias demand story.

Indian Consumption Landscape

Indias consumer market is undergoing a significant transformation, positioning itself as one of the most dynamic and sought-after markets globally. According to a report by Morgan Stanley, India is set to become the worlds third-largest economy and the most attractive consumer market over the next decade, driven by a rising affluent middle class, favourable demographics, and accelerating urbanisation. Rising disposable incomes and a shift in spending patterns towards discretionary and premium categories are expected to reshape the consumption narrative.

According to a report by Edelweiss Mutual Fund, Indias consumer market is expected to become the worlds second-largest by 2030, surpassing Japan and Germany. Consumer spending in India is projected to rise sharply from USD 2.4 trillion in 2024 to USD 4.3 trillion by 2030, reflecting the countrys strong economic fundamentals, rising household incomes, and rapid urbanisation. Key sectors such as retail, healthcare, education, and financial services are set to benefit significantly from this surge. Furthermore, the continued expansion of organised retail, increasing internet penetration, and the growing influence of digital platforms are expected to accelerate the evolution of consumer spending patterns further.

Real Estate in India

Indias real estate sector is one of the economys vital pillars, generating the second-highest employment. According to the India Brand Equity Foundation (IBEF), the real estate sector is projected to reach a market size of USD 1 trillion by 2030, contributing around 13% to Indias GDP by 2025. This growth is supported by rapid urbanisation, a growing middle class, rising disposable incomes, and sustained infrastructure development.

Market Size of Real Estate in India

(US$ bn)

Residential Real Estate in India

Source: IBEF

The sector spans residential, commercial offices, retail, and hospitality segments, each benefiting from demographic trends, policy reforms, and technological advancements. Residential real estate continues to thrive on the back of affordable housing initiatives, favourable interest rates, and increasing aspirations for homeownership. Commercial offices, particularly Grade A spaces, remain buoyant with India emerging as a global hub for IT/ITeS, banking, and professional services. Retail real estate is also undergoing rapid transformation, propelled by the growth of organised retail and the shift toward experience-driven destinations that blend shopping, dining, and entertainment. Hospitality, meanwhile, is gaining traction with the resurgence of tourism and business travel.

f

4.59 lakh units

Housing sales recorded across the top seven cities, reflecting sustained demand in Indias residential market

Indias residential real estate market maintained strong momentum through 2024 despite macroeconomic uncertainties and electoral dynamics. Housing sales across the top seven cities reached approximately 4.59 lakh units, up 76% over 2019, though marginally lower by 4% compared to 2023.

New launches reached 4.12 lakh units in 2024, down by 7% vs. 2023 but up by a strong 74% over 2019, reflecting sustained developer confidence. Mumbai Metropolitan Region (MMR), Hyderabad, Pune, and Bengaluru collectively contributed around 79% of total new launches.

Launches Vs Sales - Pan India

Buyer sentiment remained resilient, despite tightening borrowing costs and higher property prices, with end-users driving demand. Inventory overhang remained under control at 14 months, reflecting improved market efficiency and healthy absorption.

Across the top seven cities, Bengaluru led new launches with 71,000 units (up 30% year-on-year), while MMR posted the highest average capital value growth at 21%, reaching INR 16,600 persqft.

Sales in Pune, Hyderabad, and NCR also remained strong, contributing significantly to overall numbers.

The luxury and ultra-luxury segments (homes priced above ?1.5 crore) gained further traction. In Bengaluru, their share in new launches accounted for 34% up from 23% in 2023. Overall, luxury housing saw a sharp surge, particularly in Delhi- NCR, Mumbai, and Hyderabad, which accounted for over 90% of luxury sales.

Indias residential real estate sector is poised for continued growth, driven by robust end- user demand, strong economic fundamentals, and supportive home loan interest rates. Tier II cities such as Ahmedabad, Indore, Jaipur, and Coimbatore are emerging as key growth engines, aided by improved infrastructure, rising incomes, and government initiatives like the Smart Cities Mission

Affordability challenges remain critical, requiring sustained policy support for affordable housing initiatives. Trends such as greater adoption of PropTech, ESG-compliant developments, and the growth of co-living and shared spaces will further shape the sector, setting the stage for balanced and resilient growth.

Delhi-NCR, Mumbai, and Hyderabad accounted for over 90% of Indias luxury housing sales.

Commercial Office Real Estate in India

Indias commercial office sector showed strong resilience and adaptability through 2024 and is well-positioned for continued growth in 2025. According to CBRE 2025 India Market Outlook Report, leveraging on Indias extensive talent pool, global firms are increasingly positioning their GCCs as strategic hubs / second headquarters, driving innovation, digital transformation and development of high-value capabilities. As per the report, in 2025, GCCs are projected to comprise -35 to 40% of the total office space absorption across top cities.

Grade A office spaces in Bengaluru, Hyderabad, Pune, and Chennai continue to attract occupier interest, supported by a growing preference for premium, flexible, and tech-enabled workspaces.

According to CBRE 2025 India Market Outlook Report, on the supply side, 60-65% of new developments in 2025 are anticipated to be located within integrated tech parks in key cities, including Bengaluru, Hyderabad, Delhi-NCR, Mumbai, Chennai, and Pune. Developers are increasingly focused on delivering investment-grade, green- certified, and amenities-rich office spaces that align with occupiers evolving sustainability and employee well-being goals.

Leasing momentum is expected to remain steady as occupiers expand beyond traditional hubs into emerging gateway and Tier II cities, seeking talent and strategic diversification. According to CBRE 2025 India Market Outlook Report, approximately 54% of office leasing in 2022-24 was in green- certified assets that are less than 10 years old and part of integrated tech parks.

Rental growth is forecasted to be moderate yet resilient, particularly across prime micromarkets. Developers respond to evolving occupier preferences by incorporating larger floor plates, superior designs, outdoor green spaces, community-building amenities, and flexible layouts, reinforcing the hospitality-led, experience-driven evolution of Indias commercial office landscape

Source: CBRE 2025 India Market Outlook, March 2025 Retail Real Estate in India

Indias retail real estate sector showed resilience and transformation through 2024, navigating macroeconomic headwinds and evolving consumer behaviours. The industry benefits from strong economic growth, rising disposable incomes, a young demographic profile, and a clear shift towards premiumisation and experiential retailing. According to ANAROCKs Indian Retail: Changing Orbits for a New Trajectory report, Indias retail market is projected to expand from USD 1.2 trillion in 2023 to USD 2.5 trillion by 2035, a steady CAGR of 6%. Organised retail is set to rise from a 12% share in 2023 to 17-19% by 2035, offering significant headroom for modern retail formats to flourish.

Demand dynamics remained robust across top- tier cities and are increasingly penetrating Tier II and III markets. According to CBRE 2025 India Market Outlook, driven by continued expansionary sentiments of numerous global and domestic brands, retail leasing activity in Indias Tier 1 cities touched -6.4 million sq. ft. in 2024.

Supply, however, remained constrained during 2024, reducing vacancy levels. Vacancy rates in prime investment-grade malls have significantly declined, from 15.4% in 2019 to around 7.8% by 2024, underlining healthy space absorption. (ANAROCK Retail RELEAP Report 2024). Developers respond by prioritising superior mall developments, strongly focusing on sustainability, wellness amenities, and digital integration. Cushman & Wakefields report highlights that superior Grade A+ malls (about 39 million sq. ft. across top cities) are witnessing 3-4% vacancy rates and have recorded a 29% rental growth since 2019.

A clear trend of premiumisation is reshaping Indias retail landscape. Shoppers are shifting towards aspirational and discretionary categories, moving beyond essentials. Beauty & Wellness and F&B categories have expanded their share in mall leasing to 15-18% from 6-8% pre-COVID, while athleisure and sportswear brands have increased their footprint, reflecting evolving consumer lifestyles. Responding to these shifts, developers are reimagining retail spaces as lifestyle hubs offering a curated blend of retail, entertainment, dining, and community experiences. Beyond Tier I cities, Tier II and III locations such as Indore, Ahmedabad, Lucknow, Jaipur, and Coimbatore are emerging as major retail growth centres.

Looking ahead, Indias retail real estate sector is positioned for sustained growth, fuelled by demographic tailwinds, rising affluence, increasing brand consciousness, and the ongoing evolution of retail spaces into experience-driven destinations. Developers and brands that strategically align with these changing preferences, through premium spaces, ESG compliance, and hybrid physical- digital strategies, will be best placed to capture future opportunities.

Hospitality Sector in India

Indias hospitality sector is experiencing an unprecedented boom, marked by substantial investment activity and rapid expansion plans. According to JLL, the industry is poised to add approximately 42,000 new hotel keys over the next five years, reflecting the largest growth pipeline seen in recent times. This surge is driven by robust domestic demand, a rebound in business and leisure travel, and increasing interest from global hotel chains seeking to expand their footprint in India. Major cities like Delhi-NCR, Mumbai, Bengaluru, and Hyderabad continue to lead development. Tier II and III cities are emerging as essential growth hubs, supported by improving infrastructure, rising disposable incomes, and evolving travel patterns.

The outlook remains positive, with ICRA projecting 11-13% YoY growth in FY2025, supported by strong domestic leisure travel, increased demand from MICE (Meetings, Incentives, Conferences, and Exhibitions), and steady business travel. Even during the temporary lull caused by general elections, demand remained resilient, setting the stage for future growth.

New supply has been measured, with the premium room inventory across 12 key cities projected to grow at a CAGR of ~4.5-5.0% between FY2023 and FY2026, ensuring that demand will continue to outpace supply. This disciplined approach is expected to prevent oversupply issues and facilitate a prolonged upcycle in the industry. The pan-India premium hotel occupancy rate is estimated to be around 70-72% for FY2025 and is likely to improve further to 72-74% in FY2026.

Revenue and profitability metrics have also improved significantly. Average room rates (ARRs) for premium hotels are estimated at INR 8,000-8,200 for FY2025, with a further rise projected to INR 8,200-8,500 in FY2026. RevPAR (Revenue per Available Room) has almost reached pre-2008 peak levels and is anticipated to rise to INR 5,900-6,300 in FY2026. Operating margins of large hotel players are expected to be around 34-36% for FY2025 and FY2026, up from pre-COVID averages of 20-22%, driven by cost rationalisation and operating leverage.

Higher business accruals have also strengthened the sectors capital structures, improving debt coverage metrics. With sustained momentum from domestic tourism, the rise of spiritual tourism, and the continued growth of Tier II city demand, Indias hospitality sector is expected to maintain its firm footing well into FY2026.

Portfolio Overview

Retail

PMLs retail portfolio today spans 12 iconic, experience-driven city centre destinations totalling nearly 11.5 million sq. ft. across 8 major cities in India. This includes marquee assets such as Phoenix Palladium (Mumbai), Phoenix MarketCity (Mumbai, Pune, Bengaluru, and Chennai), Phoenix Palassio (Lucknow), Phoenix Citadel (Indore), Palladium Ahmedabad, Phoenix Mall of the Millennium (Pune) and Phoenix Mall of Asia (Bengaluru).

Our retail assets are recognised for their scale, prime city-centre locations, and immersive experiences that consistently deliver results. With consistently high trading occupancy, sustained consumption growth, and resilient rental income, our portfolio has become a benchmark for destination retail in India. Each mall combines premium positioning with a carefully curated brand mix, balancing global and Indian labels with diverse dining, entertainment, and community-centric offerings to drive long-term footfall and tenant productivity.

As consumer expectations evolve, our destinations are continually refreshed and repositioned to remain aspirational and relevant. By creating destinations where retail, leisure, and dining converge, we continue to deliver environments that engage, inspire, and drive sustained consumption.

Expansions and Pipeline

In November 2024, PML unveiled the West Zone at Phoenix Palladium, Mumbai, adding -250,000 sq. ft. of retail space to our flagship asset. This expansion deepened our presence in South Mumbais premium catchment and delivered immediate traction, with -14 stores opened during FY2025. The zone features high-impact anchors such as the largest Uniqlo store in South Mumbai, Lifestyle, and flagship outlets from brands like Nykaa Luxe, Tira, GAP,

Levis, Celio, Navyasa, and House of Masaba. A defining highlight was the India debut of Bershka, which marked the brands entry into the country.

To further elevate the experience, in July 2025, we launched Gourmet Village: a two-level curated dining and entertainment area in the West Zone. Of the 25 planned outlets in this space, 12 are already operational, including Game Palacio, a dynamic dining and recreation zone. Looking ahead, the West Zone will be enhanced with active leisure avenues such as pickleball and paddle courts, aligningwith evolving lifestyle preferences and reinforcing Phoenix Palladiums position as Mumbais premier destination for retail, dining, and leisure.

Retail Project Pipeline:

PML is on track to expand its national retail footprint from 12 operating malls across 8 cities today to 17 malls across 13 cities by 2030. This next phase of growth will be driven by a mix of new asset launches and densification of existing assets, enabling us to both deepen our presence in existing markets and foray into high-potential new markets.

We are currently developing retail destinations in Kolkata, Surat, and Coimbatore, along with retail- led mixed-use developments in Thane and the Chandigarh Metropolitan Region (CMR). These projects will add considerable scale and regional diversity to our portfolio. Simultaneously, we are expanding some of our assets: Phoenix Palladium, Mumbai, Phoenix MarketCity Mumbai and Phoenix MarketCity Bangalore to enhance both scale and consumer experience. Collectively, these initiatives are expected to add -7 million sq. ft. of operational retail space, taking our Gross Leasable Area (GLA) from -11.5 msft today to over 18 msft by 2030.

Retail Pipeline:
Project	Retail GLA (msft)
Phoenix Grand Victoria in Kolkata	1.00 msft
Retail destination at Surat	1.00 msft
Retail destination at Coimbatore	1.00 msft
Retail-led mixed-use destination in Thane	1.30 msft
Retail-led mixed-use destination in CMR	1.20 to 1.50 msft
Expansion of Phoenix Palladium, Mumbai	-0.45 msft
Expansion of Phoenix MarketCity Bangalore	- 0.17 msft and -0.60 msft under planning
Expansion of Phoenix MarketCity Mumbai	-0.05 msft
Total	-7.00 msft + additional under planning

Experiential Consumer Engagement

We continue to redefine what a retail destinaton can be. Our malls are not just places to shop; they are dynamic, multi-sensory environments where retail, entertainment, art, and culture converge to create lasting experiences. In FY2025, we made strong strides in enhancing these experiences, transforming our malls into vibrant community hubs that consistently engage, surprise and delight visitors.

Elevating Everyday Experiences

Our retail destinations are designed to evolve with the rhythm of the seasons, cultural moments, and shifting lifestyle preferences. In FY2025, festive themes such as Christmas celebrations, Diwali decor, and seasonal makeovers infused our malls with energy and visual delight year-round. Collaborations with the art and design community — most notably the installation of Salvador Dalis Cosmic Rhinoceros at Phoenix Palladium — brought fine art into everyday spaces, sparking curiosity, extending dwell time, and encouraging socia sharing. These efforts were recognised across the ndustry, with our destinations winning awards for excellence in decor and thematic design

Alongside these transformations, our in-house IPs—Phoenix Shopping Festival, Holiday Land, Food Festivals, and Christmas at Phoenix—anchored engagement, with over 50 exclusive events across the portfolio. Large-format attractions such as Dinoworld at Phoenix Citadel, which welcomed over 20,000 visitors, and Candy City at Phoenix MarketCity Mumbai strengthened family engagement. Live concerts, cultural showcases, childrens workshops, and community-driven festivals ensured that events catered to all agegroups, driving record-breaking footfalls and cementing our reputation as destinations of choice.

Purpose with Presence

Beyond retail and entertainment, our malls served as platforms for meaningful engagement. Shop for a Cause, in partnership with Aakar Charitable Trust and Sonu Sood, at Phoenix MarketCity Mumbai, brought social purpose into the customer journey— bridging commerce with community.

FY2025 Retail business performance

FY2025 was a milestone year for our retail portfolio, driven by strategic execution, and deep consumer engagement. We welcomed over 130 million visitors across our malls and added more than 350 new stores, reflecting strong tenant demand and an evolving, premium brand mix.

Retailer sales (Consumption) across our malls touched ^13,750 crore, recording a 21% year-on- year growth. This strong performance was led by the fast ramp up of our recently launched malls - Phoenix Mall of the Millennium, Pune and Phoenix Mall of Asia, Bengaluru. Palladium Ahmedabad also witnessed an impressive 65% surge in consumption, driven by increase in trading occupancy, growing footfalls and tenant traction.

?13,750 crore

Retailer sales across our malls, up 21% YoY.

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This growth in consumption, translated into a retail income of ,951 crore, up 18% YoY, and retail EBITDA of ?2,010 crore, a 20% growth over FY2024. Trading occupancy across the portfolio rose to a healthy 91% in March 2025, up from 87% in March 2024, reflecting the maturity of our existing malls and a fast ramp-up in leasing at new developments. Notable improvements to trading occupancy include:

Commercial Offices

Our Grade A commercial offices form a critical component of PMLs retail-led mixed-use ecosystem, designed to complement destination malls while unlocking additional development potential and establishing a second economic driver. By colocating premium office spaces with high-performing retail, we create integrated campuses that deliver stronger returns compared to standalone office projects. This approach allows us to target corporate head offices and service-sector tenants, with workplaces that combine functional efficiency, premium amenities, and proximity to world-class retail, dining, and leisure.

Commercial Office Portfolio:

Our operational office portfolio currently comprises -2 million sq. ft. of Grade A space across Mumbai (Lower Parel and Kurla) and Pune (Viman Nagar). In FY2025, we achieved key development milestones with the receipt of Occupation Certificates (OCs) for Phoenix Asia Towers in Hebbal, Bengaluru (-0.80 msft GLA) and Tower 3 of Millennium Towers in Wakad, Pune (-0.52 msft GLA; part of a larger -1.37 msft development). These completions meaningfully expanded our footprint and added geographical diversity across core urban centres. During August 2025, One National Park received Completion Certificate, taking our completed portfolio to -4.80 msft.

On the execution front, progress continues across upcoming projects. Towers 1 and 2 of Millennium

Project	GLA (msft)
Art Exchange, Bengaluru	-0.40 msft
Project Rise, Mumbai	-1.10 msft
ISML Offices, Bengaluru	-1.20 msft (under planning)
Offices at select locations	-1.50 msft (under planning)
Total	-4.20 msft

Residential Portfolio

Our residential business continues to strengthen PMLs position in Indias premium housing segment, catering to the aspirations of a growing affluent demographic. We have previously delivered high- quality residential projects in Mumbai and Chennai, establishing credibility in this category. Currently, our launched portfolio is concentrated in Bengaluru, where One Bangalore West and Kessaku have emerged as benchmark developments in the citys luxury housing market.

Residential Project pipeline:

The next phase of our residential portfolio expansion will be led by Tower 8 and 9 at One Bangalore West in Bengaluru, One Belvedere in Kolkata and residential projects under planning at select locations. These projects will deepen our presence in key metros and reinforce our positioning in the high-end segment. With a disciplined, design-led approach and integration with our larger mixed- use ecosystem, we remain well placed to capture demand in Indias evolving premium housing market.

Operational Highlights

During the year, our Bengaluru projects: Kessaku and One Bangalore West (Towers 1 to 7), achieved gross sales of 212 crore and collections of 219 crore, reflecting steady demand and buyer confidence. The portfolio continued to see strong price appreciation, with the average selling price for FY2025 rising to 26,000 per sq. ft., up 8% from 24,000 per sq. ft. in March 2024, and a remarkable 63% increase from 16,000 per sq. ft. in March 2020. This growth highlights both the resilience of the luxury residential segment and the enduring appeal of our developments. As of March 2025, we held ~340,000 sq. ft. of ready-to-sell inventory, offering healthy visibility for near-term monetisation.

Hospitality Portfolio

The hospitality vertical complements PMLs retail-led mixed-use ecosystem and contributes steady, high- quality cash flows. The portfolio currently comprises two marquee assets—The St. Regis, Mumbai (395 keys) and Courtyard by Marriott, Agra (193 keys).

Both hotels have established themselves as strong performers in their respective segments, generating robust, self-sustaining operating cash flows while steadily growing in value.

Hospitality pipeline:

On the development front, construction of the Grand Hyatt, Bengaluru is progressing on schedule, with completion targeted for 2027. In addition, hotels in Bengaluru, Indore and at other select locations are under planning, together expected to add approximately 1,200 keys These upcoming developments will significantly scale our hospitality portfolio, deepen our presence in the high-end segment, and enhance the value proposition of our integrated mixed-use ecosystems.

Operational Highlights

Our hospitality business continued to demonstrate resilient growth in FY2025, supported by strong brand positioning, operational efficiency, and a rebound in both business and leisure travel.

The portfolio recorded revenue of 580 crore, representing a 6% year-on-year increase, while EBITDA rose by 11% to 266 crore, resulting in a healthy EBITDA margin of 46%.

The St. Regis, Mumbai, our flagship luxury hotel, continued to set benchmarks for premium hospitality in South Mumbai. During FY2025, the property posted an annual income of 523 crore, up 7% vs FY2024. Growth was driven by a 13% increase in Revenue Per Available Room (RevPAR), a 9% rise in Average Room Rate (ARR), and a strong occupancy rate of 86%, an improvement of 300 basis points over FY2024. EBITDA from The St. Regis, Mumbai stood at 248 crore, delivering a robust 47% margin, reflecting its continued leadership in the luxury hospitality segment.

Courtyard by Marriott, Agra, also delivered a steady performance, with revenue of 57 crore, up 4% year-on-year, and an EBITDA of 18 crore, yielding a solid 32% margin. The hotel continued to benefit from growing domestic leisure travel and its strategic location near key tourist destinations.

With a focus on operational excellence, brand partnerships, and differentiated guest experiences, our hospitality portfolio remains well-positioned to capitalise on Indias expanding tourism and business travel market.

136,000 sq.

Additional FSI secured at Lower Parel in March 2025.

Key Land Acquisitions

In April 2024, PML, through Island Star Mall Developers Pvt. Ltd., acquired a ~6.6-acre prime land parcel in Whitefield, adjacent to Phoenix MarketCity Bangalore, for a consideration of ~230 crore (including stamp duty and registration).

This parcel has since been amalgamated with the existing campus, enabling an integrated expansion plan. Development on this site is already underway, with plans to further densify through the expansion of retail, addition of office towers, potentially a second hotel. These additions will complement the currently under-construction retail, office and hospitality projects within the Whitefield campus.

During August 2024, PML through Astrea Real Estate Developers Private Limited (a PML - GIC JV Entity) acquired a ~9.03 acre land parcel on Avinashi Road in Coimbatore for a consideration of ~370 crore. This site will house PMLs second retail destination in Tamil Nadu, building on the success of Phoenix MarketCity and Palladium Chennai.

In November 2024, Casper Realty Pvt. Ltd., a wholly owned subsidiary of PML, emerged as the highest bidder for two centrally located plots in Sector 62, YPS Chowk, Mohali, auctioned by GMADA, at a consideration of ~891 crore. Classified for commercial use, this site is earmarked for a landmark retail-led mixed-use development, strengthening PMLs presence in North India.

Further, in March 2025, PML secured additional FSI of ~136,000 sq. mt. at the Lower Parel development, for a premium payment of ~586 crore. Development planning for this additional FSI is currently underway.

Internal Control Systems

PML has established a robust system of internal controls, tailored to scale, complexity, and nature of its operations. These controls ensure:

Operational efficiency and effectiveness

Prevention and detection of frauds and errors

Safeguarding of assets against unauthorised use or loss

Compliance with applicable laws and regulations

Accuracy and completeness of accounting records

Timely preparation of reliable financial information

Our internal audit function is supported by a dedicated outsourced team with the annual internal audit plan approved by the Audit Committee. Quarterly updates on key control issues and corrective measures are presented to the Committee, which also engages with management, internal auditors, and statutory auditors to evaluate the adequacy of financial controls.

Internal audit also supports the adoption of best practices by benchmarking processes against industry standards. Assessments conducted during FY2025 confirmed that PMLs internal financial controls were adequate and effective, with no material weaknesses or significant deficiencies in design or operation.

Information Technology Infrastructure

PMLs robust IT infrastructure forms the backbone of its operations, enabling efficiency, transparency, and scalability across the business. Significant investments in recent years have built a best-inclass foundation with centralized systems that integrate accounting, administration, and property- level management. This platform, aligned with global standards in automation and performance, supports informed decision-making and generates critical business intelligence for investment management, electronic procurement, budgeting, forecasting, and cash flow modelling.

To strengthen resilience and security, PML has enhanced its IT governance framework by appointing external consultants for risk assessments and gap analyses, revising and rolling out comprehensive IT policies, and deployingadvanced cybersecurity tools. Key initiatives include a managed detection and response system, vulnerability management solutions, and phishing simulations—all designed to prevent cyber threats and close potential loopholes.

These measures reflect PMLs commitment to continuous digital transformation, safeguarding data integrity, and leveraging technology to drive operational excellence and long-term growth.

Human Capital

Our people strategy is central to sustaining growth, operational resilience, and long-term value creation. FY2025 saw 2,242 employees on roll and 33 senior leadership additions. Gender diversity strengthened, with women now forming 16% of the workforce and women leaders rising 46% YoY.

Leadership continuity remains a core differentiator for PML. This year, two long-serving leaders :

Rashmi Sen and Rajesh Kulkarni, were elevated to CEO roles, underscoring our commitment to internal succession. Complementary external appointments in Commercial Real Estate and Hospitality further strengthened the leadership core.

Learning and development saw strong traction, led by GyaanSetu, our proprietary LMS, which reached 97% adoption. Recruitment and employer branding were strengthened through the launch of a redesigned Careers portal and Oracle Recruiting Cloud, enhancing efficiency and positioning PML as an employer of choice.

Employee empowerment and recognition were driven through Phoenix Ngage, our digital engagement platform, with >90% adoption and over 2,000 peer recognitions. Regular Townhalls, "Know Your Leader" sessions, and inclusion initiatives (such as Phoenix HerSpace and Inclusive Holidays) deepened trust, transparency, and belonging.

Employee health and work-life integration remain priorities. Phoenix Cares and the Ekincare digital health platform provided preventive healthcare access, while wellness challenges, sports festivals, and enhanced insurance frameworks reinforced holistic well-being.

Together, these initiatives underpin PMLs ability to attract, retain, and scale talent in alignment with its growth trajectory.

For a detailed overview of please refer to the Human Capital Chapter in the Integrated Annual Report.

Forward-looking Perspectives

Strategic Priorities for FY2026 & Beyond

We enter FY2026 with a resilient portfolio, a clear vision, and a defined roadmap to strengthen our leadership in Indias retail-led, mixed-use development space. Guided by calibrated growth, experience-led differentiation, sustainability, and stakeholder value creation, we are well-placed to capture Indias evolving consumption and urbanisation trends.

Retail

Retail remains the cornerstone of our strategy and the primary driver of long-term value. Strategic leasing, a carefully curated brand mix, enhanced F&B and entertainment offerings, asset upgrades and expansions, along with operating efficiencies are expected to drive consumption and strengthen profitability across the retail portfolio.

Commercial Offices

Our office portfolio is being scaled to improve occupancies, build stable annuity income, and complement our retail hubs. Leasing momentum at Phoenix Asia Towers and Millennium Towers is expected to accelerate, supported by the launch of additional towers at Millennium Towers and One National Park, Chennai, post-OC. With quality assets in strategic locations, our offices are well positioned to attract occupiers and strengthen the mixed-use ecosystem.

Hospitality

Our hotels have delivered record-high performance, and we continue to build on this momentum through operational excellence, guest-centric approach, and premium F&B concepts. Hospitality remains a critical complement to our retail-led hubs, enhancing stickiness and creating lifestyle-driven urban centres.

Residential

Residential sales momentum is expected to remain strong, led by ~340,000 sq. ft. of remaining inventory at our Bengaluru projects (as of FY2025). Assets under development in Bengaluru and Kolkata (pending approvals), will further strengthen our premium positioning and diversify recurring cash flows.

Looking ahead

Our roadmap through 2030 targets scaling the retail portfolio to over 18 msft, with new destinations and expansions at existing malls. Complementary growth in offices and hospitality will reinforce the mixed-use model, with integrated hubs designed to unlock synergies, enhance customer experience, and generate long-term recurring income. With sustainability embedded through green certifications, energy efficiency, and ESG- aligned design, and backed by a strong pipeline and disciplined execution, we are well positioned to capture Indias next phase of consumption growth and deliver sustainable value while consolidating our leadership in retail-led mixed-use development.

Cautionary Statement

Certain statements in this document may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations.

These forward-looking statements are based on current expectations, forecasts, and assumptions about future events and may include, but are not limited to, statements regarding PMLs business plans, strategy, growth prospects, financial results, operational performance, and economic outlook.

Forward-looking statements involve inherent risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied. These risks and uncertainties include, but are not limited to, changes in regulatory to 1

OVERVIEW OF FINANCIAL PERFORMANCE

Your Directors are pleased to present their Report together with the Audited Financial Statements of the Company for the Financial Year ended March 31,2025 (‘FY 2024- 25).