KOCHI: Lulu Shopping Mall Calicut appears to be turning the corner, with operating income and operating profit surging in FY26 and the net loss narrowing sharply in the first quarter of FY27, even though the mall remains in the red at the PAT level.
The mall's total operating income jumped 73 per cent to Rs63.77 crore in FY26, from Rs36.80 crore a year earlier, while PBILDT — profit before interest, lease rentals, depreciation and tax — more than doubled to Rs40.71 crore from Rs16.26 crore, according to the latest CARE Ratings report.
The improvement has continued into the current financial year. In Q1 FY27, the mall reported operating income of Rs16.16 crore and PBILDT of Rs11.23 crore. Its net loss, however, stood at Rs1.07 crore for the quarter. The company had reported a net loss of Rs9.95 crore for FY26, against Rs9.37 crore in FY25.
The numbers suggest that Lulu Calicut is moving rapidly towards bottom-line profitability even though it has not crossed that threshold yet.
Occupancy
The improvement comes as the mall moves beyond its initial ramp-up phase. Lulu Mall Calicut commenced commercial operations in September 2024 and had 51 tenants and 100 per cent occupancy as of May 31, 2026, according to the rating agency. The mall is located in Kozhikode city and is positioned to draw customers from across north Kerala.
The improvement in interest coverage also indicates strengthening debt-servicing capacity. The ratio increased from 0.77 times in FY25 to 1.07 times in FY26 and 1.24 times in Q1 FY27.
Negative net worth
Despite the sharp improvement in operating numbers, the mall's balance sheet remains under pressure.
Its net worth was negative at Rs16.73 crore as of March 31, 2026, primarily because of accumulated losses incurred during the initial years of operation. CARE expects the financial position to improve as the mall gains scale and maintains its occupancy levels.
The company has also converted its construction finance loans into lease rental discounting (LRD) facilities, extending the repayment period and reducing interest costs. Its LRD debt-to-rental ratio stood at 5.13 times at the end of FY26.
The Calicut mall's performance also has to be viewed in the context of its close financial and operational relationship with the Lulu group.
Lulu International Shopping Malls (LISM) accounted for 74 per cent of Lulu Calicut's operating income in FY26, compared with 75 per cent in FY25. LISM also had Rs137.04 crore of unsecured loans outstanding to the company as of March 31, 2026, up from Rs119.05 crore a year earlier. Directors had additionally infused Rs3.95 crore through unsecured loans.
The group linkage became even stronger in March 2026 when the entire shareholding held by promoters Yusuff Ali M.A. and Ashraf Ali M.A. was transferred to LISM, making Lulu Shopping Mall Calicut a wholly owned subsidiary of LISM.
Interestingly, 74 per cent of the mall's leased space is occupied by Lulu group businesses, including hypermarkets, fashion stores and family entertainment, with the balance leased to third parties.
