Metro Brands (METROBRAND) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue for H1 FY26 reached ₹1,279 crore, up 10.1% year-over-year, driven by festive demand, new store openings, and strong e-commerce growth, despite challenges from prolonged monsoons and GST-related purchase delays.

• 65 new stores were opened in H1 FY26, offset by 7 closures, expanding the network to 966 stores across 211 cities and 31 states/UTs as of September 2025.

• E-commerce revenue grew 42% YoY in H1 FY26, now contributing 13.9%-14% of total revenue.

• Strategic partnerships and new business formats, including exclusive agreements with Clarks, Foot Locker, and New Era, are expanding the brand portfolio and market reach.

• Unaudited consolidated and standalone financial results for the quarter and six months ended September 30, 2025, were reviewed and approved by the Board and auditors, with an unmodified conclusion issued by the statutory auditors.

Financial highlights

• Consolidated H1 FY26 revenue: ₹1,279 crore (up 10.1% YoY); EBITDA: ₹366 crore (up 8.9% YoY); PAT: ₹168 crore (up 2.3% YoY); EBITDA margin at 28.6%; PAT margin at 13.1%.

• Q2 FY26 consolidated revenue: ₹651 crore (up 11.2% YoY); EBITDA: ₹171 crore (up 10.1% YoY); PAT: ₹69 crore (down 3.9% YoY).

• Gross margin for H1 FY26 at 57.3% (up from 57.2% YoY); sales per square foot maintained year-over-year.

• Net core working capital days increased to 83 as of September 2025 from 78 a year ago.

• Basic EPS (consolidated) for Q2 FY26 was ₹2.49, and for the six months was ₹6.10.

Outlook and guidance

• Management expects a like-for-like quarter ahead, with GST reductions expected to spur demand and no major headwinds anticipated.

• Plans to launch the full Clarks product range in H2 FY26 and open Clarks EBO in H1 FY27; Fila repositioning underway with local manufacturing and new EBOs planned.

• Supply chain disruptions from BIS regulations expected to normalize by end of FY26.

• Guidance remains for 15%+ revenue growth, 15% PAT growth, and EBITDA margin in the 30% range.

• E-commerce contribution is expected to stabilize at 15%-20% of revenue over the next few years.