Metro Brands (METROBRAND) Q1 26/27 earnings summary

Executive summary

• Standalone and consolidated revenue grew over 14% YoY in Q1 FY27, driven by wedding season demand and improved consumer sentiment from mid-June.

• EBITDA increased 9%-10.4% YoY, with margins near 30%; PAT declined 3.6% YoY due to higher investments in talent, marketing, and occupancy costs.

• E-commerce B2C and Omni channels grew nearly 60%, but overall digital growth was 9% due to SOR 3P business; e-commerce contributed 13.1% of total revenue.

• Opened 13 new stores and closed 4, reaching 1,041 stores across 222 cities and 31 states/UTs; new 250,000 sq ft distribution center fully operational.

• Board approved unaudited financial results, new ESOS 2026, and key board changes including new independent director appointments.

Financial highlights

• Standalone revenue was ₹701.62 crore, consolidated revenue ₹720.36 crore in Q1 FY27, both up over 14% YoY.

• Gross margin remained at a five-quarter high of nearly 60% (59.5% consolidated).

• EBITDA margin held steady at 30% (standalone) and 29.8% (consolidated).

• PAT margin was 13% (standalone) and 13.2% (consolidated), impacted by higher costs and lower treasury income.

• Revenue per square foot remained stable or improved sequentially.

Outlook and guidance

• Full-year PAT guidance maintained at 13%-15%.

• Expect double-digit growth in B2C and Omni e-commerce channels; e-commerce growth expected to normalize at 20%-30% annually.

• Diwali shift may impact Q2, but growth expected to recover in Q3.

• Full Clarks product range supply expected by Q2 FY27, with EBO launches in Q3 FY27; cautious expansion for Foot Locker and MetroActiv.

• Fila repositioning underway with local manufacturing initiated.