Metro Brands543426Earnings call transcript

Q2 FY27 call: revenue up 12.2% to INR730 crores, 1,053 stores, Clarks stores planned for H2 FY27

Transcript of the Q2 FY27 earnings call shared with the exchanges.

By ScoutQuest · Fri 23 Oct 2026, 5:51 PM IST · 2 min read

14.2%E-commerce share of revenue

E-commerce share of revenue: 14.2%.

Consolidated revenue: up 12.2% to INR730 crores
EBITDA and margin: EBITDA INR198 crores, margin 27.1%
Store count: 21 stores opened, 9 closed in Q2; network at 1,053 stores end-September

Consolidated revenue for Q2 FY27 grew 12.2% year on year to INR730 crores.
EBITDA rose 15.9% to INR198 crores, and EBITDA margin widened to 27.1% from 26.2% a year ago.
Profit after tax came in at INR77 crores, with PAT margin at 10.6%.
Management said a large share of festive demand moved from September to October, so that demand falls in the third quarter rather than the second.

21 stores were opened and 9 closed in Q2, a net addition of 12.
In the first half, 34 stores were opened and 13 closed, taking the network to 1,053 stores at the end of September.
Closures are not tied to one format: stores that do not reach profitability in about two years are closed, and some older stores face pressure when newer shopping precincts come up nearby.
Management expects closures to stay in the 2% to 3% of network range this year, in line with what has been seen historically.
On new openings, management said it is not fixated on a number and will prioritise stores it expects to be profitable.

First-half gross margin improved to 58.4% from 57.3% a year ago.
The reasons cited were lower average discounts in the end-of-season sale and online sales, a slight improvement in markup, and a slightly lower share of e-commerce in overall sales.
Working the other way were continued investment in talent and brand building, higher frontline staff costs after minimum wage revisions, occupancy costs for new formats, and lower treasury income.

Clarks: a complete exclusive store range is expected in the third quarter, and Clarks exclusive stores are expected to launch in the second half of fiscal 2027, subject to supply chain and assortment stabilising. The women's range is already in more than 400 multi-brand outlets and a limited men's range in more than 100.
Foot Locker and MetroActiv: BIS implementation challenges on selected external brands have held back supply readiness and the pace of expansion; store openings will be calibrated to product availability, with early signs of normalisation.
FILA: local manufacturing of footwear has begun in India; repositioning with a sharper merchandise and pricing strategy is expected to take shape over 12 to 18 months, with store expansion expected to pick up from FY28 onwards.
Costs: a moderate increase in frontline staff costs is expected as the remuneration structure for store teams is revised, aimed at keeping pay above minimum wage levels in most states and supporting service standards and sales growth.

Own brands contributed about 70% of store product sales at Metro, Mochi and Walkway in the first half.
E-commerce including omnichannel grew 12% in Q2 and contributed 14.2% of revenue; for the first half it grew 11% and contributed 13.6%.

Also from Metro Brands

16 Oct 2026

16 Oct 2026

16 Oct 2026