Rainy season ruined your chappals? Don’t worry — Metro Brands turned monsoons into margin season. Even as footwear sales got drenched, Rafique Malik’s empire quietly opened 38 new stores, including 4 giant Foot Lockers, proving that India’s sneaker dream isn’t a fad — it’s a full-blown retail marathon. CEO Nissan Joseph sounded like a man juggling 8 shoe brands and still finding time to cut GST discounts. The quarter had everything — FILA reboot, Clarks comeback, Walkway revival, and an e-commerce sprint at 39% growth. Keep walking — things get juicy (and maybe a little slippery). 😏
2. At a Glance
Revenue up 11% YoY (Consolidated) – Even Crocs didn’t squeak this much.
EBITDA up 10% YoY – Profits growing faster than your shoe size.
PAT slightly muted – Courtesy of Ind AS 116 and Foot Locker rent math.
“We grew 12% standalone and 11% consolidated despite prolonged monsoon and delayed festive buying.” (Translation: Even Mumbai floods couldn’t drown our top line.)
“Gross margins up 40 bps; EBITDA grew 10%.” (The CFO’s version of saying, “Margins are waterproof.”)
“42 new stores, 4 closures — net 38 added.” (If growth had feet, Metro just bought new soles.)
“4 new Foot Locker stores opened.” (The sneakerheads screamed; the accountants sighed.)
“Walkway saw its highest ever store additions — 10 new outlets.” (Budget segment finally got its premium treatment.)
“Clarks relaunched across 200 stores, expanding to 300 next quarter.” (Old-school British leather meets Indian patience.)
“GST cut of 11% on ₹1k–₹2.5k footwear — massive boost.” (A government move that even CFOs didn’t complain about 😏.)
“E-commerce up 39%; now 14% of sales.” (Digital feet moving faster than physical ones.)
“EBITDA margin intact; Ind AS 116 depresses PAT temporarily.” (A gentle reminder that accounting standards are mood spoilers.)
4. Numbers Decoded
Metric
Q2FY26
YoY Change
One-Line Analysis
Revenue (Consolidated)
₹570 Cr*
+11%
Not running, just steady jogging.
EBITDA
₹170 Cr*
+10%
Foot Locker rent didn’t pinch too much.
PAT
₹97 Cr*
Flat-ish
Ind AS took the shine off the polish.
Gross Margin
56.2%
+40 bps
Every discount now comes with profit.
E-commerce Contribution
14%
+400 bps
The new mall is your mobile screen.
Store Additions
+38 Net
+10% YoY
From metros to Tier-2 — India’s feet are everywhere.
Marketing Spend
+100 bps YoY
—
Shoelace budget increased; worth it.
(*approximate based on management’s YoY commentary and prior filings.)
EBITDA tracked sales, but PAT dipped slightly under lease accounting rules — meaning stores are expanding faster than depreciation can run.
5. Analyst Questions
Q: “What’s up with FILA and Foot Locker?” A: “BIS issues delayed progress; full recovery by early FY27.” (Translation: Red tape laced up the sneakers.)
