Metro Brands (METROBRAND) Q4 24/25 earnings summary

Executive summary

• Consolidated revenue for FY25 grew 6.4% year-over-year to Rs 2,507 crore, with standalone business up over 9% in Q4.

• EBITDA for FY25 was Rs 760 crore with a margin of 30.3%, and Q4 EBITDA grew 18-24.5% year-over-year.

• PAT declined 14.7% year-over-year to Rs 354 crore due to a one-time tax charge related to Fila business reconciliation.

• Opened 79 new stores and closed 9, ending FY25 with 908 stores across 205 cities in 31 states/UTs, surpassing 900 stores overall.

• E-commerce sales grew 20% year-over-year, contributing 10.6% to total revenue.

Financial highlights

• Q4 FY25 revenue grew 10.3% year-over-year to Rs 643 crore; EBITDA margin for Q4 was 31%.

• Gross margin for FY25 was 57.7%, running above the 55% guidance.

• E-commerce business grew 45% in Q4 and contributed 10.6% of revenue.

• Average selling price (ASP) for footwear increased 5-6% in Q4; overall ASP up 3%.

• Net core working capital days improved to 73 by March 2025, reflecting normalized inventory post-BIS implementation.

Outlook and guidance

• Committed to 15% CAGR revenue growth over the long term, with store expansion focused on profitability.

• No significant price hikes planned for FY26; ASP growth expected in the 3-5% range.

• Gross margin guidance remains at 55-57%, EBITDA at ~30%, and PAT at ~15%.

• Expansion plans include cautious addition of Foot Locker and FILA stores, with supply chain normalization expected over the next 9-12 months.

• Focus on omni-channel growth, sports & athleisure segment, and leveraging new partnerships like New Era.