Metro Brands (METROBRAND) Q1 25/26 earnings summary

Executive summary

• Achieved consolidated revenue of ₹2,507 crore in FY25, up 6.4% year-over-year, with EBITDA of ₹760 crore and EBITDA margin of 30.3%.

• Q1 FY26 consolidated revenue was ₹628.24 crore, up from ₹576.08 crore year-over-year, with net profit after tax at ₹98.80 crore.

• PAT declined 14.7% year-over-year to ₹354 crore in FY25 due to a one-time tax charge related to Fila business reconciliation.

• E-commerce revenue grew 20% year-over-year to ₹259 crore in FY25, contributing 10.6% to total revenue, and surged 45% in earlier periods.

• Opened 79 new stores and closed 9 in FY25, ending with 908 stores; Walkway and Fila banners prioritized for expansion.

Financial highlights

• Q4 FY25 consolidated revenue grew 10.3% year-over-year to ₹643 crore; EBITDA margin improved to 31.0%.

• Gross margin for FY25 was 57.7%, slightly down from 58.1% in FY24; Q1 gross margin remained robust, close to 60%.

• Revenue per square foot was INR 4,350, impacted by calendar shifts and new store annualization.

• Net core working capital days improved to 73 by March 2025, reflecting normalized inventory post-BIS implementation.

• Operating cash flow for FY25 was ₹698 crore, with a net increase in cash and cash equivalents of ₹47 crore.

Outlook and guidance

• Long-term guidance maintained: 15%-18% CAGR in revenue, mid-teens PAT margin, and 30%+ EBITDA margin.

• Demand recovery in H2 FY25 after a weak H1; modest growth expected to continue.

• Store expansion will be opportunity-driven, focusing on profitable rental deals and cautious addition of Foot Locker and FILA stores.

• Focus on omni-channel growth, sports & athleisure segment, and leveraging new brand partnerships.

• Management and auditors confirm compliance with Indian Accounting Standards and regulatory requirements.