Metro Brands Reports Robust Q3 Growth with 15% Revenue Surge
Metro Brands Limited (MBL), a prominent footwear retailer in India, has announced impressive financial results for the third quarter of fiscal year 2026. The company reported a 15% year-on-year revenue growth, reaching ₹811 crore. This performance was primarily fueled by strong demand during the festive and wedding seasons, which saw heightened consumer spending. Additionally, the reduction in Goods and Services Tax (GST) on footwear priced below ₹2,500 provided a significant boost, making products more affordable and driving sales volumes.
Nine-Month Performance and Digital Expansion
For the nine-month period ending December 2025, Metro Brands achieved a 12% revenue growth, attributed to disciplined execution across various sales channels. A notable highlight is the company's digital transformation, with e-commerce and omni-channel sales growing by 24% during Q3 FY26, contributing 12% of total revenue, up from 11% in the same quarter last year. Over the nine-month span, digital sales expanded by 35%, now accounting for 13% of revenue, underscoring the increasing importance of online platforms in the retail strategy.
Operational Efficiency and Profitability Metrics
On the operational front, Metro Brands demonstrated enhanced efficiency with an EBITDA of ₹265 crore, marking a 17.6% increase year-on-year. The EBITDA margin improved significantly, expanding by 500 basis points to 32.7%, reflecting better cost management and operational leverage. This double-digit growth in revenue and EBITDA translated into a substantial rise in net profit, which stood at ₹130 crore compared to ₹95 crore in Q3 FY25, indicating a 37.1% year-on-year improvement.
Strategic Store Expansion and New Launch
During Q3 FY26, Metro Brands adopted a calibrated approach to network expansion, opening 35 new stores while closing 11. Over the nine-month period, the company added 100 new stores, offset by 18 closures, ensuring a balanced and strategic growth in its physical footprint. In a significant move to diversify its portfolio, the company launched MetroActiv, a dynamic, multi-brand retail destination focused on the sports performance segment. This initiative brings together leading global brands such as Nike, Adidas, Puma, ASICS, Skechers, New Balance, FILA, and New Era under one roof, aiming to establish Metro Brands as a trusted name in athletic sportswear retail.
Interim Dividend Declaration
Alongside the quarterly results, the board of directors approved an interim dividend of ₹3 per equity share with a face value of ₹5 each. The record date for eligibility has been set for Monday, February 02, 2026, with the payment to be made within thirty days from the declaration date. This move underscores the company's commitment to rewarding shareholders amidst strong financial performance.
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