Metro Brands FY26 Results: Volume up 9%, store count hits 1,041 in June
- Footwear volume growth stood at 9% in FY26, with an average price increase of ~3%
- Store count reached 1,041 by June 2026, up from 1,032 at March-end
- Payback period for new stores remains at two years; mature stores are largely profitable
- E-commerce contributed 12.9% to overall revenue, growing 39% YoY
- FY27 expansion will be disciplined, guided by location availability and financial thresholds
*this image is generated using AI for illustrative purposes only.
Metro Brands shareholders approved the FY26 financial results at its 49th annual general meeting held on September 16, 2026. The footwear retailer reported consolidated revenue from operations of ₹2,864 crore, a 14.2% increase year-on-year.
Profit after tax (PAT) rose 17.3% to ₹416 crore, while EBITDA grew 14.5% to ₹869 crore, maintaining an EBITDA margin of 30.3%. The Board declared a final dividend of ₹3 per equity share, in addition to the interim dividend of ₹3 per share already paid.
Financial Performance
The company demonstrated accelerating growth momentum during the fiscal year. Revenue expansion strengthened progressively, starting at 9% in Q1FY26 and reaching 20% in Q4FY26. This acceleration occurred despite continued investments in store expansion, marketing, technology, and newer retail formats.
| Metric | FY26 Value | YoY Growth |
|---|---|---|
| Revenue from Operations | ₹2,864 crore | +14.2% |
| EBITDA | ₹869 crore | +14.5% |
| EBITDA Margin | 30.3% | - |
| Profit After Tax | ₹416 crore | +17.3% |
| Footwear Volume Growth | - | +9% |
What the Numbers Show
PAT growth outpaced top-line revenue growth by approximately 3 percentage points (17.3% vs 14.2%), even as the company maintained its EBITDA margin at 30.3%. This divergence suggests that factors beyond operating leverage—such as lower effective tax rates or higher other income—contributed to the bottom-line expansion, as operating margins remained stable despite significant capex in new stores and formats.
A key operational metric disclosed during the AGM was the 9% volume growth in footwear sales for FY26. With revenue growing 14.2%, this implies an average price increase of approximately 3% year-on-year, primarily reflecting product mix improvements and input cost adjustments rather than aggressive pricing hikes.
Operational Highlights
Metro Brands crossed the milestone of 1,000 stores during FY26. The network expanded by 124 net additions, with 147 new stores opened and 23 closed, bringing the total year-end count to 1,032 outlets. As of June 2026, the store count had further increased to 1,041.
E-commerce emerged as a significant growth driver, with digital revenue surging 39% to contribute 12.9% of overall sales. The integration of physical and digital networks supported this expansion, alongside investments in supply chain infrastructure and AI-driven decision-making tools.
Strategic Initiatives
The company broadened its portfolio through partnerships in comfort footwear, sneaker culture, sports performance, and athleisure. Key brands under the Metro Brands umbrella include MetroActiv, Foot Locker, FILA, New Era, and Clarks.
Sustainability remained a core focus, with the company achieving full recycling coverage for all footwear sold during the year through its scaled recycling programme.
Management Commentary on Efficiency
During the AGM, management addressed shareholder concerns regarding Return on Capital Employed (ROCE) and revenue per square foot. CEO Nissan Joseph stated that the majority of mature stores are profitable, with historical store closures limited to 2-3% of the network. He confirmed that the payback period for new stores continues to be two years.
Regarding expansion plans for FY27, the company indicated it will continue with disciplined network expansion across metros, Tier 1, Tier 2 cities, and emerging markets. The final number of net additions will be guided by location availability, brand potential, and expected returns. Competition remains high across segments, but the diversified brand portfolio helps maintain competitiveness.
Governance and Resolutions
Shareholders approved several key resolutions at the AGM:
- Re-appointment of Ms. Alisha Rafique Malik as Whole-time Director.
- Re-appointment of Ms. Farah Malik Bhanji as Managing Director.
- Appointment of Mr. Sonny Iqbal as Independent Director.
- Approval of remuneration for Non-Executive Chairman Mr. Rafique Abdul Malik.
- Amendments to the 'METRO Stock Option Plan 2008' and approval of the 'Metro Brands Limited – Employee Stock Option Scheme 2026'.
The Statutory Auditors' Report and Secretarial Auditors' Report for FY25-26 contained no qualifications or adverse remarks.
Historical Stock Returns for Metro Brands
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.74% | +3.62% | -8.95% | -12.06% | -31.35% | +75.06% |
How will Metro Brands' planned disciplined expansion in Tier 2 and emerging markets for FY27 impact its near-term EBITDA margins given the higher initial setup costs?
What specific strategies is management implementing to sustain the 39% e-commerce growth rate as digital penetration approaches saturation levels in key urban centers?
How does the integration of AI-driven decision-making tools specifically contribute to inventory turnover and reduction in markdowns across the newly opened 124 stores?
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