Metro Brands slips after Q2 profit declines

Metro Brands fell 3.85% to Rs 1,156 after the footwear retailer reported a decline in profitability for the quarter ended September 2025.

Net profit dropped 31.29% quarter-on-quarter (QoQ) to Rs 68.98 crore in Q2 FY26 from Rs 99 crore in Q1 FY26, and was down 3.89% year-on-year (YoY) compared with Rs 72 crore in Q2 FY25.

Revenue from operations rose 3.65% QoQ to Rs 651.14 crore in Q2 FY26 and increased 11.22% YoY from Rs 585 crore a year ago.

Profit before tax (PBT) came in at Rs 91.12 crore in Q2 FY26, falling 30.35% sequentially from Rs 130.82 crore and down 3.32% YoY from Rs 94.25 crore in Q2 FY25.

EBITDA (approximated by operating profit before depreciation and finance cost) stood at Rs 171 crore in Q2 FY26, up 10.1% compared to Rs 155 crore in Q2 FY25. EBITDA margin was around 26.2% versus 26.5% in Q2 FY25.

Total expenditure increased 14.25% YoY to Rs 588.26 crore from Rs 514.87 crore. Employee expenses rose 10.91% YoY to Rs 66.18 crore, while finance costs increased 34.92% YoY to Rs 29.44 crore. Depreciation was at Rs 78.40 crore, up 25.60% YoY.

The company said that the Q2 FY26 recorded stable growth primarily driven by early onset of festive period v/s last year. However, overall demand in Q2 was slightly impacted by the prolonged monsoon spell and sluggish consumer footfalls following the GST rate reduction announcement, as consumers awaited price cuts.

During the quarter, 42 new stores were opened. This was offset by 4 stores closures for the quarter. Ecommerce sales (including omni-channel) grew by 39%, contributing to 14.2% of the revenue (compared to 11.4% in Q2 FY25).

Nissan Joseph, CEO, Metro Brands, said: Q2 delivered a continued growth performance, and I was pleased to see that we were able to maintain this trajectory while improving our Gross Margins and EBITDA growth in line with the sales improvement. We stayed focused on enhancing customer experience across channels and continued to build momentum through our store expansion and digital investments. The launch of Clarks Cloudsteppers across 200 Metro and Mochi stores, along with 42 new store openings- including Foot Locker and New Era, further strengthened our portfolio.

Metro Brands is one of the largest Indian footwear specialty retailers. Metro Brands retails footwear under its own brands of Metro, Mochi, Walkway, Da Vinchi and J. Fontini, as well as certain third‐party brands such as Crocs, Fitflop, Fila, Clarks, Skechers, Puma and Adidas which complement its in‐house brands. As of 30 September 2025, the company operated 966 stores across 211 cities spread across 31 states and union territories in India.

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