Metro Brands delivered strong Q2FY27 results with consolidated net profit rising 9.8% year-on-year to ₹76 crore, compared with ₹69 crore in the same quarter last year. Revenue from operations grew 12.2% to ₹730 crore from ₹651 crore in the year-ago quarter. EBITDA increased 15.6% to ₹197.4 crore from ₹170.7 crore, with EBITDA margin improving to 27% from 26% in the previous year. The company's first-half performance showed stable growth with continued investments in employee costs and brand-building activities.
The footwear retailer faced challenges from the festive calendar shift, with sales that fell in September last year moving to October this year, pushing a larger share of consumer demand into the December quarter. Despite this headwind, Metro Brands added 21 new stores during Q2FY27 and closed 9 stores, taking its retail network to 1,053 stores across 223 cities and 31 states and Union Territories. Online and omnichannel sales grew 12% year-on-year and accounted for 14.2% of revenue, unchanged from the same quarter last year. The company continued its expansion strategy while managing the impact of the festive season timing change.
Metro Brands shares rose 2.72% to ₹924.80 on Thursday, gaining ₹24.45 from the previous close following the strong quarterly results announcement. The stock had previously declined 27.11% year-to-date in 2026, with continued selling pressure across multiple timeframes. Rekha Jhunjhunwala holds a 14.4% stake in the footwear retailer, making it a key holding in her portfolio. Despite the recent correction, technical indicators suggest continued weakness with the stock forming a lower-high and lower-low pattern on daily charts.
Despite the stock decline, analysts expect Metro Brands to report healthy revenue and earnings growth in Q2FY27. Elara Capital's Q2FY27 estimates indicate revenue could grow 13.2% year-on-year, supported by volume growth of around 10.5% and realisation growth of approximately 2.5%. The company's premium portfolio is expected to remain a key contributor to revenue growth. EBITDA margin is projected to expand 78 basis points YoY to 27%, while adjusted profit after tax is expected to rise 21.9% YoY. The brokerage maintains a 'Buy' rating with a target price of ₹1,510, implying an upside potential of around 72% from current market price.
Nissan Joseph, CEO of Metro Brands, highlighted that the company delivered double-digit growth despite festive-season sales shifting to the following quarter. He emphasized that EBITDA grew faster than revenue, reflecting the company's focus on operational efficiency and profitability. The management indicated that Metro Brands would continue to strengthen its brands, expand its retail network and invest in capabilities to support long-term growth as it entered the key festive season. The company expects to face continued pressure from higher employee costs following minimum wage revisions and increased occupancy costs from new store formats, while maintaining its focus on operational excellence.
