Metro Brands reports strong Q2 FY26 growth, boosts e-commerce and store expansion

Metro Brands Limited announced 12% growth in stand-alone business and 11% in consolidated numbers for Q2 FY26. Gross margins increased by 40 basis points year-over-year, and EBITDA grew by 12% (stand-alone) and 10% (consolidated). The company opened 42 new stores, including 4 high-profile Foot Locker stores and a record 10 Walkway stores, resulting in a net addition of 38 stores. E-commerce revenue grew 39%, now contributing 14% to total revenue, with plans to expand Clarks footwear to 300 doors next quarter.

GST reductions positively impacted the business, leading to an 11% price reduction for footwear priced between INR1,000 and INR2,500, and a 6% reduction for footwear under INR1,000, affecting approximately 90% of its footwear and Walkway business. Metro Brands has consciously increased marketing investments by almost 100 basis points.

FILA's repositioning is underway, with the first standalone store expected by year-end, and the brand is currently in over 100 Metro Mochi doors. Capital expenditure during the period was approximately INR60 crores, driven by new store openings and renovations. Metro Brands targets sustainable SSG growth in the mid- to high single digits, aiming for 20%-30% ROCE from the Walkway format in the medium to long term.