Metro Brands Targets 1,000+ Stores by FY27, Reports 11.2% Growth in Q2 FY26

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:

Metric	Q2 FY26	Q2 FY25	YoY Growth
Revenue from Operations	₹651.14 crore	₹585.45 crore	11.2%
EBITDA	₹171.00 crore	₹155.00 crore	10.1%
EBITDA Margin	26.2%	26.5%	-30 bps
PAT	₹69.00 crore	₹72.00 crore	-3.9%
PAT Margin	10.6%	12.3%	-170 bps

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:

Clarks: Introduced Clarks' Cloudstepper ladies' range in approximately 200 MBOs, with plans to launch the complete product range in H2 FY26.
Foot Locker: Opened 4 new stores in Q2 FY26 – one in Noida and three in Mumbai.
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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.55%	-1.39%	-8.92%	+9.80%	-5.12%	+143.90%

Metro Brands Limited , a leading Indian footwear and accessories retailer, has announced its unaudited financial results for the second quarter and first half of fiscal year 2026, showcasing strong revenue growth and maintaining steady profitability.

Q2 FY26 Standalone Performance

For the quarter ended September 30, 2025, Metro Brands reported standalone revenue from operations of ₹635.97 crores, marking a significant increase from ₹566.73 crores in the same quarter of the previous year. This represents a year-on-year growth of 12.2%.

The company's profit after tax for Q2 FY26 stood at ₹64.10 crores, compared to ₹65.67 crores in Q2 FY25, showing a slight decrease of 2.4%.

H1 FY26 Standalone Highlights

For the first half of FY26, Metro Brands achieved the following standalone results:

Particulars (₹ in crores)	H1 FY26	H1 FY25	YoY Growth
Revenue from Operations	1,251.06	1,129.94	10.7%
Profit After Tax	160.72	158.02	1.7%

Consolidated Performance

On a consolidated basis, Metro Brands reported:

Particulars (₹ in crores)	Q2 FY26	Q2 FY25	YoY Growth
Revenue from Operations	651.14	585.45	11.2%
Profit After Tax	68.98	71.77	-3.9%

Key Financial Metrics

Basic Earnings Per Share (EPS) for Q2 FY26:
- Standalone: ₹2.35
- Consolidated: ₹2.49

Operational Highlights

During the quarter, Metro Brands continued to invest in its workforce:

Granted 1,50,308 Employee Stock Options under ESOP 2008
54,610 Employee Stock Options were exercised

Dividend

The company paid a final dividend of ₹2.50 per equity share, as approved in the Annual General Meeting held on September 18, 2025.

Balance Sheet Strength

As of September 30, 2025, Metro Brands maintained a strong financial position:

Particulars (₹ in crores)	Standalone	Consolidated
Total Assets	3,706.03	3,783.60
Total Equity	1,781.83	1,847.38
Cash and Cash Equivalents	96.69	97.66

Inventory Management

The company reported inventories of ₹772.81 crores on a standalone basis and ₹785.84 crores on a consolidated basis, indicating a well-managed inventory to support its growing operations.

Metro Brands' performance in Q2 and H1 FY26 demonstrates its ability to drive revenue growth while maintaining profitability in a competitive retail environment. The company's focus on expanding its product offerings and strategic operational management continues to yield positive results.