Q3 2026 Metro Brands Ltd Earnings Call Transcript
Key Points
- Metro Brands Ltd (BOM:543426) reported a 15% growth in both stand-alone and consolidated business, marking a strong performance for Q3 FY26.
- The company crossed the INR800 crore mark for the first time on a consolidated basis, showcasing significant revenue achievement.
- EBITDA grew by 16% for stand-alone and 18% for consolidated business, maintaining a 33% EBITDA margin.
- The digital commerce business grew by 4%, now contributing 12% to total revenues, indicating successful online channel expansion.
- 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.
- The new proposed labor code from November 2025 led to a INR3.3 crore accrual, impacting PAT despite a 33% growth.
- Store closures were higher in Q3, with 11 closures, which could indicate strategic portfolio adjustments or underperforming locations.
- The BIS-related challenges continue to affect the FILA and Foot Locker segments, slowing down expansion plans.
- The company faces a drag on margins due to new ventures like FILA, Foot Locker, and MetroActiv, which are still in the gestation period.
- There is a slight buildup of inventory, which, although in line with the season, could pose a risk if not managed effectively.
Ladies and gentlemen, good day, and welcome to the Metro Brands Limited Q3 FY26 earnings conference call hosted by Avendus Spark.
The management is today represented by Mr. Rafique Malik, Chairman; Ms. Farah Malik Bhanji, Managing Director; Mr. Nissan Joseph, Chief Executive Officer; Mr. Kaushal Parekh, Chief Financial Officer; Mr. Mohit Dhanjal, Chief Operating Officer. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Tejash Shah from Avendus Spark. Thank you, and over to you, sir.
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Thank you, Muskan. Good afternoon all. On behalf of Avendus Spark, I welcome you all to the 3Q FY26 earnings call of Metro Brands. I'll now hand over the call to Mr. Nissan for the opening remarks, post which we'll open the floor for Q&A.
Over to you, Nissan.
Thanks, Tejash.
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