Metro Brands Q3 Profit Jumps 36% on Festive Sales Boost

Introduction to Metro Brands' Q3 Performance

Metro Brands Ltd, a leading Indian footwear retailer, announced a significant 35.6% year-on-year increase in its consolidated net profit for the third quarter of fiscal year 2026. The company's profit after tax stood at ₹128.3 crore for the quarter ending December 31, 2025, compared to ₹94.6 crore in the corresponding period of the previous year. This robust performance was largely driven by heightened consumer spending during the festive and wedding seasons, coupled with favorable tax revisions on footwear.

Detailed Financial Breakdown

The company's revenue from operations saw a healthy increase of 15.4%, reaching ₹811 crore in Q3 FY26, up from ₹703.1 crore a year earlier. The growth reflects strong consumer demand and the company's effective market strategies. This top-line growth was accompanied by an improvement in operational efficiency. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 18.1% to ₹265.2 crore. Consequently, the EBITDA margin expanded to 32.7% from 31.9% in the same quarter of the previous year, indicating better profitability at the operational level.

Key Drivers: Festive Demand and GST Cuts

The impressive quarterly results were underpinned by two primary factors. Firstly, the period coincided with India's peak festive and wedding season, a time when consumer discretionary spending, particularly on apparel and footwear, typically surges. Metro Brands capitalized on this seasonal demand effectively. Secondly, the government's reduction in the Goods and Services Tax (GST) on footwear priced below ₹2,500 made products more affordable for a wider consumer base. This policy change provided a significant tailwind, stimulating sales volume across the company's diverse brand portfolio.

E-commerce and Omni-channel Growth

Metro Brands continued to strengthen its digital presence, with e-commerce and omni-channel sales registering a 24% growth during the quarter. The digital segment contributed 12% to the company's total revenue, up from 11% in Q3 FY25. For the nine-month period ending in December 2025, digital sales grew by an even more impressive 35%, accounting for 13% of the total revenue. This highlights the success of the company's ongoing investments in creating a seamless online and offline shopping experience for its customers.

Strategic Network Expansion

The company pursued a calibrated approach to expanding its physical retail footprint. During the third quarter, Metro Brands opened 35 new stores while closing 11, resulting in a net addition of 24 stores. Over the first nine months of the fiscal year, the company added a net of 82 stores, with 100 new openings and 18 closures. This strategic expansion is aimed at increasing market penetration and reaching a broader customer base across different regions.

Brand Portfolio and New Initiatives

Metro Brands is diversifying its offerings to cater to evolving consumer preferences. The company launched MetroActiv, its multi-brand sports performance retail concept, in key cities like Indore, Dehradun, and Jodhpur. It also localized the manufacturing of FILA footwear in India, with plans to open exclusive brand outlets for the brand in the coming quarter. The company continues to manage its partnerships with international brands like Crocs, Foot Locker, and New Era Cap, although expansion for some external brands has been moderated due to supply chain challenges related to BIS regulations.

Management Commentary and Outlook

Nissan Joseph, CEO of Metro Brands, expressed satisfaction with the results. "I'm pleased to see our growth momentum continue with a 15% increase in revenue. Q3 reinforces our view that long-term retail success is built through scale, portfolio depth, and rigorous execution," he stated. Joseph emphasized the company's strategy of building a diversified platform spanning fashion, comfort, and performance, supported by strong omni-channel capabilities. The board also showed its confidence in the leadership by re-appointing him as CEO for another five-year term.

Market Reaction

The positive earnings report was well-received by the market. On the day of the announcement, January 27, shares of Metro Brands Ltd closed at ₹1,066.50 on the BSE, marking a gain of 4.35%. This reflects investor confidence in the company's growth trajectory and financial health. The performance of rivals such as Bata India and Campus Activewear for the same quarter is awaited and will provide a broader perspective on the footwear sector's health.