Metro Brands Limited , a leading Indian footwear retailer, has reported a robust performance for the quarter ended September 30, 2025, with significant expansion in its retail network and strong growth across various business segments.

Financial Performance

The company reported:

• 12% growth in standalone business
• 11% growth in consolidated numbers
• 12% EBITDA growth for standalone business
• 10% EBITDA growth for consolidated business

Retail Expansion

Metro Brands continued its aggressive retail expansion strategy during the quarter:

• Opened 42 new stores
• Closed 4 stores
• Net addition of 38 stores, including:
  • 4 Foot Locker stores
  • 10 Walkway stores (highest quarterly addition for the format)

E-commerce Growth

The company's e-commerce business achieved:

• 39% year-on-year growth
• 14% contribution to overall revenue

Brand Expansion and Partnerships

Metro Brands has expanded its brand portfolio:

• Launched Clarks footwear in 200 Metro and Mochi stores
• Plans to expand Clarks presence to 300 stores in the next quarter

Impact of GST Reduction

Recent GST reductions have positively impacted the company's business:

• 11% price reduction for footwear priced between INR 1,000-INR 2,500
• 6% reduction for footwear under INR 1,000
• Affects 90% of Walkway and 40% of Metro Mochi footwear business

Marketing and Margins

• Marketing spend increased by 100 basis points
• Gross margins improved by 40 basis points

Operational Challenges

Metro Brands is addressing some operational challenges:

• Working on resolving BIS issues affecting FILA and Foot Locker expansion
• FILA repositioning expected to take 12-18 months

Future Outlook

Nissan Joseph, CEO of Metro Brands, stated:

"We remain focused on operational rigor and financial discipline to ensure that we achieve our guidance. We continue to feel confident in our guidance that we will grow at a 15% plus rate and also produce a profit after tax of 15% and an EBITDA in the 30% range."

ESG Rating

CFC Finlease Private Limited, a SEBI registered ESG Rating Provider, has voluntarily assigned an ESG rating of '70' to Metro Brands Limited, based on publicly available data.

As the Indian footwear market continues to evolve, Metro Brands' diversified portfolio and strategic expansion plans appear well-positioned to drive sustained growth in the coming quarters.

Metro Brands Limited (MBL), a leading Indian footwear specialty retailer, has announced ambitious expansion plans and reported steady growth in its latest quarterly results. The company aims to expand its retail network to over 1,000 stores by FY27, while focusing on premium and sports categories.

Expansion Strategy

Metro Brands plans to accelerate the rollout of its premium and sports categories as part of its growth strategy. The company intends to increase its digital sales mix and expand margins through the growth of in-house brands. This multi-pronged approach is designed to strengthen Metro Brands' position in the competitive footwear market.

Q2 FY26 Financial Performance

For the quarter ended September 30, 2025, Metro Brands reported the following key financial metrics:

The company's revenue growth was primarily driven by the early onset of the festive period compared to the previous year. However, overall demand in Q2 was slightly impacted by a prolonged monsoon spell and sluggish consumer footfalls following the GST rate reduction announcement.

Store Expansion and E-commerce Growth

During Q2 FY26, Metro Brands continued its expansion efforts:

• Opened 42 new stores
• Closed 4 stores
• Total store count reached 966 across 211 cities in 31 states and union territories

The company's e-commerce sales, including omni-channel, grew by 39% year-on-year, contributing 14.2% to the total revenue, up from 11.4% in Q2 FY25.

Strategic Partnerships and New Formats

Metro Brands has been actively expanding its brand portfolio and retail formats:

1. Clarks: Introduced Clarks' Cloudstepper ladies' range in approximately 200 MBOs, with plans to launch the complete product range in H2 FY26.
2. Foot Locker: Opened 4 new stores in Q2 FY26 – one in Noida and three in Mumbai.
3. New Era: Launched the first New Era store in Lucknow and three kiosks in Delhi, Chandigarh, and Bengaluru during Q2 FY26.

Management Commentary

Nissan Joseph, CEO of Metro Brands Limited, commented on the results: "Q2 delivered a continued growth performance, and I was pleased to see that we were able to maintain this trajectory while improving our Gross Margins and EBITDA growth in line with the sales improvement. We stayed focused on enhancing customer experience across channels and continued to build momentum through our store expansion and digital investments."

Outlook

Metro Brands' expansion strategy, coupled with its focus on premium and sports categories, positions the company for potential growth in the coming years. The planned increase to over 1,000 stores by FY27, along with the emphasis on digital sales and in-house brands, may contribute to the company's long-term objectives of market share expansion and margin improvement.

As Metro Brands navigates challenges such as GST-related supply chain disruptions in its global brand portfolio, particularly in the Sports & Athleisure footwear segment, the company expects these issues to fully normalize by the end of FY26.

With its multi-brand strategy and expanding retail footprint, Metro Brands aims to capitalize on the growing casualization trend in Indian footwear consumption, potentially strengthening its market position in the premium and sports categories.