Metro Brands: Steady H1 FY26 growth despite market challenges

Metro Brands Limited reported a consolidated revenue from operations of INR 1,279 crores for H1 FY26, a 10.1% increase year-on-year from INR 1,162 crores in H1 FY25. Consolidated EBITDA grew by 8.9% to INR 366 crores, with an EBITDA margin of 28.6%. PAT for H1 FY26 reached INR 168 crores, up 2.3% from INR 164 crores in H1 FY25, though PAT margin saw a slight decline to 13.1%. During Q2 FY26, the company opened 42 new stores, contributing to a total of 65 new store additions in H1 FY26, bringing the total store count to 966 across 211 cities.

E-commerce sales, including omni-channel, surged by 42% in H1 FY26, contributing 13.9% to overall revenue. Key initiatives included a long-term licensing agreement with Foot Locker, Inc., leading to four new Foot Locker stores in Q2 FY26. The company also launched its first New Era store and three kiosks in Q2 FY26, alongside starting local manufacturing of Fila footwear due to BIS concerns.

The company's performance was influenced by an early festive season, but prolonged monsoon and sluggish consumer footfalls following GST rate reduction announcements marginally impacted overall demand. Marketing expenses for new collection launches and higher non-cash IndAS 116 charges from new store openings also affected PAT margins. Metro Brands continues to expand its multi-brand platform, leveraging strategic partnerships with brands like Clarks, Fitflop, and Crocs.