Metro Brands has received a credit rating reaffirmation from Care Edge Ratings, with the rating agency maintaining its AA rating for long-term bank facilities and A1+ rating for short-term facilities with a stable outlook. The announcement, made through a regulatory filing dated April 3, 2026, also revealed an enhancement in the company's total bank facilities.

Rating Details and Facility Enhancement

Care Edge Ratings reaffirmed the credit ratings while enhancing Metro Brands' bank facilities limit. The rating details are presented below:

The enhancement represents an increase of ₹10.00 crore in the company's available bank facilities, demonstrating the rating agency's confidence in Metro Brands' financial capabilities.

Strong Operational Performance Drives Rating Rationale

The rating reaffirmation is supported by Metro Brands' robust operational performance and strong market position. The company demonstrated solid growth in FY25 with several key performance indicators showing positive trends:

The growth momentum continued in 9MFY26, with total operating income reaching ₹2,090.62 crore, representing a 12.12% increase compared to the corresponding period of the previous year.

Extensive Retail Network and Brand Portfolio

Metro Brands has established itself as one of India's largest specialty footwear retailers with a comprehensive distribution network. As of December 31, 2025, the company operates 990 stores across 212 cities in 31 states and union territories. The company added 284 stores between FY23 and FY25, with a further net addition of 82 stores in 9MFY26.

The company's brand portfolio includes both in-house brands and strategic partnerships with global brands:

In-house Brands:

• Metro, Mochi, Walkway, Da Vinchi, J. Fontini, and Gen X

Global Brand Partnerships:

• Crocs, FitFlop, FILA, Foot Locker, New Era, Clarks, and HEYDUDE

Notably, 74% of revenue comes from in-house brands while third-party brands contribute 26%, with 54% of revenue generated from premium products priced over ₹3,000.

Asset-Light Business Model and Financial Strength

Metro Brands operates on an asset-light business model by outsourcing manufacturing operations to over 250 vendors across India. This approach enables efficient scaling without high fixed costs while maintaining flexibility and focus on core competencies such as branding and retail operations.

The company maintains a robust financial risk profile with no external long-term debt and nil utilization of working capital borrowings. As of March 31, 2025, Metro Brands held free cash and liquid investments totaling ₹785.29 crore, demonstrating strong liquidity position.

Future Growth Initiatives

Metro Brands has launched MetroActiv, a multi-brand retail format focused on the sports and performance segment, bringing together global brands such as Nike, Adidas, Puma, ASICS, Skechers, New Balance, FILA, and New Era. The company launched three MetroActiv stores and the website metroactive.com in 9MFY26.

The company has also entered an exclusive agreement with Clarks covering India, Bangladesh, Nepal, Bhutan, Maldives, and Sri Lanka, with complete product supply expected by Q2FY27 and EBO launches planned from Q3FY27 onwards.

Metro Brands Limited has disclosed receiving an Environmental, Social, and Governance (ESG) rating of 67.7 for FY 2024-25, as announced in a regulatory filing on March 30, 2026. The rating was assigned by SES ESG Research Pvt. Ltd., marking a significant milestone in the company's sustainability reporting.

ESG Rating Details

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following the SEBI Master Circular dated January 30, 2026. The rating assessment provides stakeholders with insights into the company's environmental, social, and governance practices.

Independent Assessment Process

The company emphasized that it did not engage SES ESG Research for the rating assignment. The research firm independently prepared their assessment based on data pertaining to Metro Brands available in the public domain for FY 2024-25. This approach ensures an objective evaluation of the company's ESG performance without potential bias from direct company involvement.

Regulatory Compliance and Transparency

The disclosure aligns with SEBI's enhanced focus on ESG reporting and transparency in the Indian capital markets. The rating information has been made publicly available through multiple channels to ensure stakeholder access:

• Published on SES ESG's website at www.sesesg.com
• Available on Metro Brands' corporate website at www.metrobrands.com
• Filed with both BSE and NSE stock exchanges

Corporate Governance Framework

The filing was signed by Deepa Sood, Senior Vice President - Legal, Company Secretary & Compliance Officer, demonstrating the company's commitment to proper governance protocols. The digital signature authentication and formal regulatory submission process reflect Metro Brands' adherence to compliance standards and transparency requirements in ESG reporting.