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Metro Brands Ltd
NSE: METROBRAND BSE: 543426 INE317I01021 Consumer Durables Footwear 🔎 Screen
₹28,443 Cr
Market Cap
69.2
P/E
13.84
PEG
20.2%
ROCE
22.2%
ROE
0.79
D/E
29.3%
OPM
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About

The company is one of the largest Indian footwear & accessories specialty retailers and are among the aspirational Indian brands in the footwear category.Its a one-stop shop for of branded products for the entire family, including men, women, unisex, and children, and for every occasion, including casual and formal events.

✓ Strengths 1
  • Company has been maintaining a healthy dividend payout of 76.0%
! Concerns

No concerns data yet.

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Strong beat: Q4 revenue grew 20.3% YoY (consolidated) driven by festive demand and GST cut, but margin improvement was limited and pre-IndAS116 PAT margin actually contracted. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹773 Cr
+20.3% YoY (consolidated)
EBITDA Margin
30.8%
+10bps YoY (consolidated)
PAT
₹118 Cr
+23.5% YoY (consolidated)
Store Count
1,032
+124 net adds in FY26
What Went Right
  • Revenue growth accelerated to 20.3% YoY in Q4 (vs 12.2% in 9M FY26), driven by festive/wedding demand and GST reduction on footwear below ₹2,500.
  • Ecommerce (inc. omnichannel) grew 53% YoY to 12.2% of revenue (Q4 FY25: 9.5%), now contributing ₹94 Cr in the quarter.
  • Gross margin held at 57.8% (consolidated), broadly flat YoY, supported by higher own-brand mix (73% at MBOs).
  • Clarks partnership progressed: online launch in Q3, Cloudsteppers ladies' range in ~300 MBOs, full product supply expected by Q2 FY27.
  • Opened 47 net stores in Q4; total store count reached 1,032, with 14 new cities added in the quarter.
What to Watch
  • Pre-IndAS116 PAT margin declined to 15.6% from 15.9% in Q4 FY25, indicating underlying profitability pressure despite revenue beat.
  • Revenue per sq.ft. stood at ₹4,750 in Q4 FY26, unchanged YoY; full-year rev/sq.ft. dropped to ₹17,300 vs ₹18,200 in FY25 – expanding into lower-productivity cities.
  • Core working capital days worsened to 86 from 73 in FY25, driven by inventory build-up (₹856 Cr vs ₹637 Cr) as new store openings and Clarks stock ramp-up weighed.
  • Foot Locker expansion remains cautious due to ongoing BIS certification issues for select brands; only 6 stores added in FY26 (vs plan).
  • One-off gain of ₹7 Cr from warehouse lease reversal inflated other income; excluding this, Q4 PAT growth would be lower.
Investor Lens
The investment thesis — India's largest footwear retailer with asset-light model and ~30% EBITDA margins — remains intact, but the Q4 performance reveals emerging strains. Revenue growth acceleration is encouraging, but flat-to-declining revenue per sq.ft. suggests new stores (especially in Tier II/III) are generating lower productivity. Working capital deterioration needs monitoring as inventory piles up ahead of Clarks full rollout. BIS hurdles continue to delay Foot Locker scale-up, a key medium-term growth driver. Next quarter's focus: Foot Locker store openings, Clarks EBO launch timing (Q3 FY27), and any working capital normalization.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED 20% revenue growth YoY but QoQ dip; margins stable at 31%
Revenue
Revenue increased 20.2% YoY to ₹773 Cr, driven by strong consumer demand. However, sequentially it fell 4.7% from ₹811 Cr in Dec 2025, indicating a seasonal slowdown.
Profitability
Net profit rose 24.2% YoY to ₹118 Cr, with EPS improving to ₹4.28 from ₹3.48. But PAT declined 9.2% QoQ, reflecting higher depreciation and interest costs.
Margins
Operating profit margin held steady at 31% YoY, unchanged from Mar 2025. QoQ it slipped from 33% in Dec 2025, likely due to higher operating expenses.
Cash Flow
Cash flow data not disclosed; unable to assess CFO quality relative to reported PAT.
Balance Sheet
Total borrowings of ₹1,570 Cr against reserves of ₹1,857 Cr, resulting in a debt-to-equity ratio of 0.79. Total assets stood at ₹4,015 Cr.
Key Risks
1) High PE of 69.2 suggests elevated expectations with little room for error. 2) Debt of ₹1,570 Cr and D/E of 0.79 raise leverage concerns in a rising interest rate scenario. 3) QoQ revenue and profit decline may indicate demand tapering.
Outlook
Sustained YoY growth supports a positive trajectory, but sequential weakness and high leverage warrant caution. Monitoring store additions and working capital efficiency will be key.
Generated by AI · Mar 2026 results · Not investment advice
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