Metro Brands (METROBRAND) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 10.6% year-over-year to ₹703 crore, driven by festive and wedding season demand, with consolidated revenue for 9M FY25 at ₹1,865 crore.

• EBITDA margin improved to 32.1% in Q3 FY25, with profit before tax up 18% and PAT at ₹95.08 crore, impacted by a one-time tax charge related to FILA business reconciliation.

• Growth was broad-based across all banners, with strong October and November sales despite early competitor discounting.

• E-commerce sales for 9M FY25 grew 10% year-over-year to ₹199 crore, with Q3 FY25 e-commerce sales up 37% year-over-year.

• Net 22 new stores opened in Q3, totaling 61 net new stores in 9M FY25; on track for 225 net new stores by FY26.

Financial highlights

• Q3 FY25 consolidated revenue was ₹703.09 crore, up from ₹635.50 crore in Q3 FY24; 9M FY25 consolidated revenue reached ₹1,865 crore.

• EBITDA margin improved to 32.1% in Q3 FY25; consolidated EBITDA for 9M FY25 was ₹561 crore (30.1% margin).

• PAT for Q3 FY25 was ₹95.08 crore, with a 13.5% margin; 9M FY25 PAT was ₹259 crore.

• Gross margin for 9M FY25 was 58.1% standalone and 57.8% consolidated; Q3 gross margin contracted by 130 bps due to FILA liquidation and higher e-commerce contribution.

• Working capital days improved from 82 to 76 as of December; cash balance at INR 900-1,000 crores.

Outlook and guidance

• Targeting 140-145 net new stores in FY26 to reach 225 net new stores by FY26.

• Long-term sales CAGR guidance of 15-18% over the next 2-5 years, supported by new brands.

• Margins guided to remain above 55% for gross margin and around 30% for EBITDA.

• Cautious expansion in sports & athleisure segment due to BIS-related supply chain disruptions.

• Q4 expected to be strong due to end-of-season sales and favorable marriage dates.