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Informist, Tuesday, Aug. 4, 2026

By Utthara E. S.

MUMBAI – Metro Brands Ltd. is expected to report a decent growth in the net profit and strong growth in net sales in the June quarter driven by store expansion, according to the brokerages tracking the company. The company is expected to report the strongest revenue growth in the retail sector for the quarter despite fewer weddings, delayed monsoon and price hikes, according to brokerages.

Metro Brands is expected to report a consolidated net profit of INR 1.02 billion for the June quarter, up nearly 4% on year from INR 985 million in the year-ago quarter, according to the average of estimates from 12 brokerages. The highest estimate for the company's June quarter net profit is INR 1.08 billion from Elara Securities (India) Pvt. Ltd. and the lowest is INR 974 million from Nuvama Wealth Management Ltd. The expected growth in the net profit is due to the higher number of store openings, Prabhudas Lilladher Pvt. Ltd.

The company's consolidated net sales are expected to increase nearly 16% on year to INR 7.26 billion for the June quarter from INR 6.28 billion in the year-ago quarter, according to the average of estimates. The highest net sales estimate is INR 7.40 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 7.17 from SMIFS Ltd. The company's expected sales growth is led by healthy online channel and store expansion, PhillipCapital (India) Pvt. Ltd. said.

The company's revenue growth is led by healthy demand, store expansion, footprint addition, steady growth in partner brands, flat movement of sports and outdoor products, and growth in premium and casual footwear categories, brokerages said. The company's topline is expected to rise 15% led by growth in the retail space and flat movement of sports and outdoor products, according to Nuvama and Emkay Global Financial Services Ltd.

The company is expected to report a net store addition between 18 and 30 for the June quarter, taking the total store count to around 1,050, according to brokerages.

Metro Brands is expected to report earnings before interest, tax, depreciation, and amortisation of INR 2.22 billion for the June quarter, up 15% from INR 1.93 billion in the year-ago quarter, according to the average of 10 estimates. The highest EBITDA estimate is INR 2.29 billion from Motilal Oswal and the lowest is INR 2.16 billion from JM Financial Institutional Securities Pvt. Ltd.

The company is expected to report an EBITDA margin of 30.6% for the June quarter, a contraction from 30.9% in the year-ago quarter, according to the average of 11 estimates. The highest estimate for the EBITDA margin is 31.1% from Elara and PhillipCapital and the lowest estimate for the EBITDA margin is 30.2% from HDFC Securities Ltd. The expected compression of the EBITDA margin is due to the higher input cost, increasing commodity prices, growing newer brands and slow productivity, Nuvama and SMIFS said.

The company's gross margin for the June quarter is expected to contract to 58-59% from 59.3% in the year-ago quarter, led by 18% on-year increase in employee cost and a 16% on-year increase in other expenses, according to the estimates of four brokerages. The company's profit margin is expected to decline due to higher depreciation and interest expenses, and lower other income, Emkay said.

Metro Brands is a footwear and accessories brand headquartered in Mumbai. It offers a wide range of varieties in footwears, shoe care products, bags, wallets, belts, cardholders, socks, and inserts. Its in-house brands are Metro Shoes, Mochi, Walkway, Cheemo, DaVinchi, and J. Fontini.

The footwear segment saw steady demand in April and May due to early Bakri Eid but the demand fell in June due to fewer weddings and one less weekend, according to PhillipCapital. The input cost inflation is likely to weigh on margins in the near term, Prabhudas said. The delayed monsoon is also expected to have negatively impacted the rain merchandise, according to HDFC Securities.

Metro Brands will announce its June quarter earnings on Aug. 4. Investors will track the company's demand, margin expansion strategy, revenue growth, and network expansion.

At 1403 IST shares of Metro Brands were slightly up at INR 1,041.40 apiece on the National Stock Exchange. The shares are down 6% since the company announced its March quarter earnings on May 20.

Of the 11 research reports on the company available with Informist, 10 have a "buy" recommendation on the stock with an average target price of INR 1,255, which is 20% higher than the current market price. Only one brokerage has a "sell" recommendation on the stock with a target price of INR 1,234.

The following are the Apr-Jun earnings estimates for Metro Brands Ltd. from 12 brokerages in descending order of the estimates of net profit, in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Pankaj Aher

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