According to reports from Business Standard, Metro Brands delivered 15% year-on-year revenue growth in the June quarter, though this marked a declining trend over the last two quarters. The company's performance was supported by a pickup in demand sentiment in June and a healthy wedding season, helping offset challenges from West Asia war-led disruption and shift in marriage dates due to inauspicious Adhik Maas. Among its sales channels, offline sales led growth with 16% improvement, while e-commerce including omni-channel grew at a slower pace of 9%.
As reported by Business Standard, the company's margin picture showed mixed results in the quarter. Gross margin expanded by 20 basis points year-on-year to 59.5%, while operating profit margin fell by 110 basis points to 29.8%. This decline was attributed to higher employee costs, which increased by 50 basis points, and higher other expenses, which rose by 70 basis points. The margin compression reflects the company's ongoing investment in growth initiatives.
According to Business Standard, Metro Brands added only nine stores to its portfolio of 1,041 stores during the quarter, significantly lower than the 42 stores added in the March quarter. The company's average store additions over the previous three quarters were 35 stores. Despite the muted quarterly additions, Metro Brands has indicated that the pace of store additions will pick up in coming quarters. For FY27, the company has reiterated its mid-teens revenue growth guidance.
As reported by Business Standard, Emkay Research maintains a positive stance based on strong mid-teens growth prospects, bolstered by existing portfolio strength and new scalable partnerships. However, analysts led by Devanshu Bansal emphasize that new growth engines and leadership investments must perform to drive stock rerating. Equirus Securities analysts point out that while the company consistently outperforms the footwear pack, current growth run rates are not exciting enough against continued brand investments. The stock currently trades at 51 times FY28 earnings, with analysts maintaining mixed ratings and target prices ranging from ₹1,000 to ₹1,124.
