Metro Brands Ltd. (BSE: METROBRAND) The Indian footwear retailer recorded improved demand during the festive season and expanded its sports portfolio through the launch of the MetroActiv format. The company also confirmed the five-year re-appointment of Chief Executive Officer Nissan Joseph.
The company reported a consolidated revenue of ₹811 crore for the third quarter ended December 31, 2025, representing a 15.4% increase over the same period in the previous fiscal year. Profit after tax for the quarter rose 37.1% to ₹130 crore, supported by robust demand during the festive and wedding seasons and a reduction in GST rates for footwear priced below ₹2,500. The company continues to expand its physical footprint, reaching a total of 990 stores across 212 cities.
Corporate Actions
The Board declared an interim dividend of ₹3 per share, with February 2, 2026 set as the record date. The company approved the re-appointment of Nissan Joseph as Chief Executive Officer for a five-year term starting July 1, 2026. During the quarter, the company launched its multi-brand sports retail format, MetroActiv, with initial stores opened in Indore, Dehradun, and Jodhpur.
Operating Metrics
Consolidated EBITDA for Q3 FY26 was ₹265 crore, with a margin of 32.7%, compared with 32.1% in Q3 FY25. For 9M FY26, consolidated revenue rose 12.1% year on year to ₹2,091 crore. Ecommerce and omnichannel sales grew 35% over the nine-month period and contributed 13.2% of total revenue.
The nine-month results included a one-time charge of ₹3.46 crore from higher actuarial provisions for employee benefits following implementation of the New Labor Code in November 2025. Standalone gross margin for 9M FY26 remained stable at about 58%. In-house brands accounted for 73% of sales at multi-brand outlets during the period.
Portfolio Update
The company’s growth strategy remains centered on its “house of brands” model, addressing economy, mid, and premium segments. Management is currently repositioning the Fila brand through local manufacturing to mitigate regulatory challenges. While the company continues to integrate global partners like Foot Locker and New Era, it noted a cautious approach to store expansion for select external brands.
A strategic partnership with Clarks is also underway, with Cloudstepper products introduced in approximately 200 MBOs. Full supply chain stabilization for Clarks is anticipated by Q2 FY27, with exclusive brand outlets (EBOs) expected to launch in Q3 FY27.
Industry Headwinds
The footwear industry is currently navigating the implementation of Bureau of Indian Standards (BIS) regulations, which have led to supply chain disruptions for imported global brands. While some manufacturing units have received certification, Metro Brands expects the stabilization of the supply ecosystem for its sports and athleisure portfolio to be delayed until the second quarter of FY27. Despite these hurdles, the company is leveraging the trend of “casualization” through its expanded sports and premium comfort footwear offerings.