This article first appeared on GuruFocus .
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Revenue Growth:15% growth in both stand-alone and consolidated business.
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Sales Milestone:Crossed INR800 crore mark for the first time on a consolidated basis.
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Premium Product Sales:55% share of business from sales over INR3,000.
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Digital Commerce Growth:4% growth, reaching a 12% share of total revenues.
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EBITDA Growth:16% growth for stand-alone and 18% for consolidated business, with a 33% EBITDA margin.
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PAT Growth:33% growth, achieving 16% for the quarter for both stand-alone and consolidated business.
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Store Openings:35 new stores opened and 11 closed, totaling over 100 new stores this fiscal year.
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New Store Concept:Launch of three new MetroActiv stores for athletic performance seekers.
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Release Date: January 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Metro Brands Ltd ( BOM:543426 ) reported a 15% growth in both stand-alone and consolidated business, marking a strong performance for Q3 FY26.
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The company crossed the INR800 crore mark for the first time on a consolidated basis, showcasing significant revenue achievement.
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EBITDA grew by 16% for stand-alone and 18% for consolidated business, maintaining a 33% EBITDA margin.
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The digital commerce business grew by 4%, now contributing 12% to total revenues, indicating successful online channel expansion.
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Metro Brands Ltd opened 35 new stores this quarter, bringing the total new stores for the fiscal year to over 100, demonstrating aggressive expansion efforts.
Negative Points
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The new proposed labor code from November 2025 led to a INR3.3 crore accrual, impacting PAT despite a 33% growth.
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Store closures were higher in Q3, with 11 closures, which could indicate strategic portfolio adjustments or underperforming locations.
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The BIS-related challenges continue to affect the FILA and Foot Locker segments, slowing down expansion plans.
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The company faces a drag on margins due to new ventures like FILA, Foot Locker, and MetroActiv, which are still in the gestation period.
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There is a slight buildup of inventory, which, although in line with the season, could pose a risk if not managed effectively.
Q & A Highlights
Q: What has helped Metro Brands defy the slowdown trend in discretionary consumption, and can these trends be sustained? A: Nissan Joseph, CEO, explained that the company has experienced three consecutive quarters of double-digit growth due to various initiatives across their banners. They anticipate consistent growth and see no significant factors that could dampen this trend.
Q: Can you provide guidance on store openings and whether this pace will continue? A: Nissan Joseph, CEO, stated that Metro Brands is committed to opening new stores and will continue to do so as long as it makes sense for profitability and market share. They are not constrained by capital and will accelerate growth when opportunities arise.
Q: Why has there been a sharp dip in other income this quarter? A: Kaushal Parekh, CFO, explained that the dip in other income is due to the payout of a special dividend in the previous financial year. Despite lower treasury funds, the overall treasury income for the nine months is still higher than last year.
Q: What has driven the growth improvement from 11% in Q2 to 15% in Q3? A: Nissan Joseph, CEO, clarified that the growth is due to strong performance in existing stores and new store openings. The flat revenue per square foot is due to the addition of new stores, which initially perform below the level of established stores.
Q: How is Metro Brands addressing the challenges in the sports and athleisure space? A: Nissan Joseph, CEO, noted that the market for athletic footwear is growing, and Metro Brands is capitalizing on this through retail concepts like Foot Locker and MetroActiv. They are investing in design and marketing to enhance their FILA business and are optimistic about long-term growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
