Metro Brands Limited , a prominent player in the Indian footwear retail sector, has announced a significant corporate governance update following its 48th Annual General Meeting (AGM) held on September 18, 2025.

Key Highlights

• Director Re-appointment: Shareholders approved the re-appointment of Mohammed Iqbal Hasanally Dossani as Whole-Time Director for a five-year term starting June 25, 2026.
• Financial Performance: The company reported a revenue growth of 6.40% to ₹2,507.00 crores in the previous fiscal year.
• Store Expansion: Metro Brands crossed the 900-store mark, ending the year with 908 stores after adding 70 net new locations.
• E-commerce Growth: Online sales grew by approximately 20%, contributing 10.60% to total revenue.
• Strategic Partnerships: The company launched India's first Foot Locker store and entered into agreements with New Era Cap, LLC and Clarks.

Director Re-appointment Details

Mohammed Iqbal Hasanally Dossani, who has been associated with Metro Brands since November 26, 2020, received shareholder approval for his re-appointment as Whole-Time Director. His new term will commence on June 25, 2026, and last for five years.

Dossani brings a wealth of experience to his role, holding a bachelor's degree in commerce from the University of Mumbai and having completed a course on rhetoric and public speaking from Harvard University. His contributions to the company include:

• Launching Biofoot, India's first foot wellness solution
• Spearheading CRM implementation and RFID adoption initiatives
• Serving on the boards of several Metro Group companies

Company Performance and Strategy

During the AGM, Managing Director Farah Malik Bhanji highlighted the company's performance in a challenging operating environment. Despite mixed conditions, Metro Brands achieved:

• Revenue growth of 6.40% to ₹2,507.00 crores
• EBITDA of ₹760.00 crores with an improved margin of 30.30%
• Gross margins of 57.70%
• Profit after Tax of ₹354.00 crores (impacted by one-time tax adjustments in the FILA business)

The company's in-house brands contributed 74% of the total revenue, underscoring the strength of Metro Brands' proprietary offerings.

Expansion and Strategic Initiatives

CEO Nissan Joseph outlined several key strategic moves:

1. Store Expansion: The company added 70 net new stores, bringing the total to 908 locations.
2. E-commerce Push: Online sales grew by about 20%, now accounting for 10.60% of total revenue.
3. New Partnerships:
   • Launched India's first Foot Locker store
   • Signed a long-term distribution agreement with New Era Cap, LLC
   • Announced a partnership with Clarks in June 2025

Future Outlook

Metro Brands expressed confidence in achieving medium to long-term revenue growth of 15-18%. This optimism is based on:

• Rebound in demand observed in the second half of the previous fiscal year
• Supportive government measures, including GST rate reductions and revised income tax slabs
• Expected lower interest rates to boost consumption

The company remains committed to enhancing customer experiences, delivering long-term stakeholder value, and building a sustainable future in the competitive footwear retail market.

With these strategic moves and a focus on both offline and online growth, Metro Brands appears well-positioned to capitalize on the evolving retail landscape in India's footwear sector.

Metro Brands , a prominent footwear retailer, has announced its decision to fully pass on the benefits of the recent GST reduction to customers, potentially stimulating demand in the footwear market. The company's CEO, Nissan Joseph, revealed this strategy in light of the upcoming change in GST rates for footwear priced below Rs 2,500.00.

GST Reduction and Its Impact

The Goods and Services Tax (GST) rate for footwear priced below Rs 2,500.00 is set to decrease from 12% to 5%, effective September 22. This significant 7% reduction is expected to have a notable impact on the footwear industry, particularly for Metro Brands, which sees a substantial portion of its sales from this price segment.

Metro Brands' Strategy

Nissan Joseph, CEO of Metro Brands, stated that the company will transfer the entire benefit of the GST reduction to its customers. This move is expected to make footwear more affordable and potentially drive up demand. Key points from the announcement include:

• The company's margins will remain unchanged as they are calculated net of GST.
• Metro Brands is targeting 30% EBITDA margins by FY26.
• Approximately 44% of Metro Brands' sales come from products under Rs 3,000.00, with 40% below Rs 2,500.00.

Market Dynamics

The GST reduction is set to reshape pricing strategies in the footwear market:

• The Rs 2,500.00-2,700.00 price point is expected to become redundant.
• Retailers are likely to prefer selling at Rs 2,499.00 to capture the GST benefits.

Growth Expectations

Joseph expressed cautious optimism about the company's growth trajectory:

• The price reduction is expected to spur demand.
• Metro Brands may potentially achieve its long-term guidance of 15% sales CAGR faster due to this development.

Market Response

The market has responded positively to this news, with Metro Brands' shares closing 4.38% higher at Rs 1,247.00.

Conclusion

As the footwear industry adapts to the new GST structure, Metro Brands' decision to pass on the full benefit to consumers could potentially strengthen its market position and drive growth. The coming months will be crucial in determining the actual impact of this pricing strategy on the company's performance and the broader footwear market.