New Delhi: Mall operators in India are expected to clock a healthy revenue growth of 12–14 per cent in the current fiscal year, building on a 14 per cent surge last year, a report said on Wednesday. The revenue growth is supported by a ramp‑up of malls acquired over past two fiscals, planned additions and annual rental escalations, the report from Crisil Ratings said.
The momentum is likely to persist next fiscal as well with revenue growing in double digits because of similar drivers, the report said adding that leverage will remain in check, supported by a healthy operating performance. Goods and services tax (GST) rate cuts, sustained economic growth, benign inflation, lower interest rates and an above-normal southwest monsoon are expected to stoke consumption, it added.
Overall occupancy rose 3.5 per cent to 93.5 per cent last fiscal and is expected to reach 94–95 per cent this and next fiscal. This will also be driven by operators maximising occupancy in malls commissioned or acquired over the past two fiscals, it noted. “Assets added via organic and inorganic routes have been a growth driver for large mall developers and REITs. Mall operators in our sample set have increased their retail space by 3 million square feet in two fiscals through 2025, mainly in Tier 2 cities, as part of their growth and diversification strategies," said Gautam Shahi, Director, Crisil Ratings.
Another 4.5-5 million square feet is expected to be added till FY27, to drive annual revenue growth up 400 bps, he added. Crisil noted after analysing malls in India's 11 Tier‑1 and Tier‑2 that account for a third of the Grade A malls in India, that sustained growth in rental income driven by improving occupancy, along with healthy balance sheets should keep credit profiles stable.
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