Metro Brands filed its Business Responsibility and Sustainability Report (BRSR) for FY26 on August 24, 2026. The footwear retailer disclosed it diverted 4,892 tonnes of old discarded footwear from landfills, processing approximately 12.5 million pairs through recycling and co-processing.

The company generated 1,42,322.6 kWh of renewable energy via solar installations at its warehouses. Total Scope 1 and Scope 2 greenhouse gas emissions stood at 21,149.33 metric tonnes of CO2 equivalent.

Environmental Performance

Metro Brands reported total energy consumption of 1,11,159.86 GJ for the year. Renewable sources accounted for 512.21 GJ, representing 0.46% of total energy usage. Non-renewable electricity consumption was 1,05,349.78 GJ.

Water withdrawal totaled 1,14,382.7 kilolitres, entirely from third-party sources. Water consumption was estimated at 22,876.54 kilolitres. The company discharged 91,506.16 kilolitres of water, categorized under "Others" with no treatment specified.

Waste Management

The entity generated 58 tonnes of direct waste, comprising 57 tonnes of plastic waste and 1.22 tonnes of e-waste. Plastic waste recycled amounted to 57 tonnes, while e-waste was safely disposed of.

Through its CSR-funded Old Discarded Footwear (ODF) initiative, the company processed 4,892 tonnes of waste. Of this volume, 76 tonnes were recycled and 4,816 tonnes were co-processed in waste-to-energy plants. This initiative contributed to an estimated GHG mitigation of approximately 314 tCO2e.

Social and Governance Metrics

Metro Brands employed 6,854 individuals, including 5,179 permanent employees. Female representation among permanent employees was 11.64%. The turnover rate for permanent employees was 51.48% in FY26, compared to 51.47% in FY25.

The company spent 0.11% of total revenue on employee well-being measures. All permanent employees were covered by health insurance and accident insurance. Maternity benefits covered 100% of female permanent employees.

Supply Chain and Procurement

Procurement from Micro, Small, and Medium Enterprises (MSMEs) accounted for 48% of total inputs, up from 43% in the previous year. Domestic sourcing remained stable at 95%.

The company assessed 52% of its value chain partners by business value for ESG parameters. Total purchases from trading houses reached ₹1,385.41 crore, with the top 10 trading houses contributing 42.79% of this volume.

What the Numbers Show

Customer complaints surged to 33,970 in FY26 from 28,639 in FY25, yet all were resolved within the year. This increase coincides with a rise in total sales to ₹2,797.16 crore from ₹2,449.61 crore, suggesting complaint volume is scaling proportionally with transaction growth rather than indicating a drop in service quality.

Metro Brands Limited reported a consolidated revenue from operations of ₹720 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 14.7% year-on-year increase from ₹628 crore in Q1FY26. Despite robust top-line growth driven by strong performance in Clarks and Metro/Mochi brands, consolidated net profit after tax (PAT) declined by 3.6% to ₹95 crore from ₹99 crore in the corresponding period last year. The divergence between revenue expansion and profit contraction highlights margin pressure, with EBITDA margins contracting to 29.8% from 31.0% YoY, primarily due to increased investments in brand-building marketing, talent acquisition, and higher occupancy costs from new store formats.

The Board of Directors approved the unaudited financial results on August 04, 2026, in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Standalone revenue grew 14.1% to ₹702 crore, while standalone PAT fell 5.4% to ₹91 crore. Management attributed muted demand in April and May to the US-Iran conflict overhang and a shift in marriage dates due to Adhik Maas, noting that consumer sentiment improved significantly from mid-June onwards during the wedding season.

Financial Performance Highlights

The table below summarises key financial metrics for Q1FY27 compared to Q1FY26:

On a standalone basis, employee benefits expense rose to ₹72 crore from ₹59 crore in Q1FY26, reflecting higher staffing costs. Finance costs remained stable at ₹30 crore, while depreciation and amortization expenses increased to ₹85 crore from ₹69 crore, indicating sustained capital investment in infrastructure and store expansions.

Operational Updates and Store Expansion

During the quarter, Metro Brands opened 13 new stores and closed 4, resulting in a net addition of 9 stores. The total store count stands at 1,041 across 31 states and union territories. E-commerce sales, including omni-channel operations, grew by 9% year-on-year, contributing 13.1% to overall revenue compared to 13.7% in Q1FY26. In-house brands contributed 71% of revenue at Multi-Brand Outlets (MBOs).

The company faced supply chain challenges for select external brands due to ongoing BIS implementation issues, leading to a cautious approach toward new store expansion for those brands. However, progress was made in local manufacturing for Fila footwear in India to mitigate BIS concerns. Clarks Cloudsteppers ladies’ range is now available in approximately 300 MBOs, with the complete product range expected by Q2FY27. Foot Locker and MetroActiv formats are being stabilized, with new EBOs launched for Fila in Vizag and New Era in Mumbai.

Management Commentary and Guidance

Nissan Joseph, CEO of Metro Brands Limited, stated that the business delivered another quarter of double-digit growth supported by disciplined execution. He noted that while demand was relatively muted during April and May due to external factors, consumer sentiment improved from mid-June, supported by the wedding season. The company continues to invest in its brand portfolio, marketing, and leadership talent to support sustainable long-term growth.

Regarding forward guidance, CFO Kaushal Parekh reaffirmed the company’s full-year targets, expecting gross margins in the range of 55% to 57%, EBITDA margins around 30%, and PAT margins between 13% and 15%. Management highlighted that gross margins remained healthy at nearly 60%, matching the highest levels seen in the past five quarters, aided by effective input cost mitigation and inventory control.

What the Numbers Show

The contraction in EBITDA and PAT margins despite robust revenue growth suggests that operating leverage has not yet offset the increased cost base. The rise in employee benefits and depreciation expenses points to aggressive capacity building and talent acquisition. While ecommerce growth remains steady, its contribution share slightly declined, indicating that offline store expansion continues to drive the bulk of volume growth. The company’s pivot towards an omni-channel model and strategic brand partnerships like Crocs and Fitflop aims to improve long-term profitability, though short-term margin pressure persists due to these investments.