Metro Brands Q2 FY27 results: net profit up 12.0% to ₹77.28 crore, revenue up 12.2%

How did Metro Brands perform in Q2 FY27?

Metro Brands reported consolidated Q2 FY27 revenue of ₹730.27 crore for July–September 2026, up ₹79.13 crore or 12.2% from ₹651.14 crore in Q2 FY26. Total income rose 10.9% to ₹753.21 crore, while EBITDA increased ₹26.69 crore or 15.6% to ₹197.41 crore. The EBITDA margin was 27.0%, compared with 26.2% in the year-ago quarter.

Profit before tax was ₹102.44 crore, up ₹11.38 crore or 12.5% year on year, and net profit increased ₹8.30 crore or 12.0% to ₹77.28 crore. Tax was ₹25.48 crore, up ₹3.34 crore or 15.1%, while basic EPS rose ₹0.29 to ₹2.78. On a standalone basis, revenue was ₹711.79 crore and net profit was ₹73.0 crore.

Against Q1 FY27, revenue rose ₹9.91 crore or 1.4%, but EBITDA fell ₹17.24 crore or 8.0% to ₹197.41 crore and the EBITDA margin declined from 29.8% to 27.0%. Profit before tax fell ₹23.93 crore or 18.9%, net profit fell ₹17.98 crore or 18.9%, and basic EPS fell ₹0.66 to ₹2.78.

What changed in Metro Brands' costs and profit?

Total expenses increased ₹62.51 crore or 10.6% year on year to ₹650.77 crore. Employee cost was up ₹18.29 crore or 27.6% at ₹84.47 crore, depreciation rose ₹9.51 crore or 12.1% to ₹87.91 crore, other expenses increased ₹14.58 crore or 11.9% to ₹137.44 crore, and finance costs rose ₹0.56 crore or 1.9% to ₹30 crore. The company said higher employee costs followed minimum wage revisions.

Other income declined ₹5.24 crore or 18.6% to ₹22.94 crore, while tax increased ₹3.34 crore or 15.1% to ₹25.48 crore. There was no exceptional item in Q2 FY27. Sequentially, employee cost rose ₹8.58 crore, depreciation rose ₹2.94 crore, and finance costs rose ₹0.38 crore; other expenses fell ₹0.45 crore, other income fell ₹3.37 crore, and tax fell ₹6.01 crore.

The company attributed Q2 PAT margin support to gross-margin expansion, while flagging continued investment in talent and brand-building and the effect of minimum wage revisions on staff cost. The investor presentation also stated that the festive calendar shifted a larger share of demand into Q3, affecting quarterly growth.

How did the first half of FY27 go?

In H1 FY27, Metro Brands reported consolidated revenue of ₹1,450.63 crore, up ₹171.25 crore or 13.4% from ₹1,279.38 crore in H1 FY26. Total income increased ₹163.74 crore or 12.3% to ₹1,499.88 crore, while profit before tax rose ₹7.79 crore or 3.5% to ₹228.81 crore.

H1 FY27 net profit was ₹172.54 crore, up ₹4.76 crore or 2.8% from ₹167.78 crore, and basic EPS increased ₹0.12 to ₹6.22. The company said H1 PAT margins were affected by investment in talent and brand-building, higher front-end staff costs following minimum wage revisions, a modest rise in occupancy costs and lower treasury income against a strong H1 FY26 base.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹4,151.39 crore, up from ₹4,015.3 crore at 31 March 2026, and total equity was ₹2,127.94 crore, up from ₹2,026.7 crore. The company reported no borrowings at either date, while cash and cash equivalents were ₹35.28 crore, compared with ₹32.57 crore. Inventories were ₹956.82 crore, versus ₹855.95 crore, trade receivables were ₹118.8 crore versus ₹99.82 crore, and trade payables were ₹295.2 crore versus ₹278.16 crore.

H1 FY27 operating cash flow was ₹248.13 crore, compared with ₹140.73 crore in H1 FY26. Investing cash flow was ₹1.49 crore against negative ₹2.49 crore, financing cash flow was negative ₹246.91 crore against negative ₹135.42 crore, and capital expenditure was ₹56.3 crore compared with ₹61.54 crore.

How has Metro Brands done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. In the quarterly series, revenue was highest at ₹811.27 crore in Q3 FY26 and lowest at ₹628.24 crore in Q1 FY26; Q2 FY27 revenue was ₹730.27 crore.

Net profit reached ₹130.37 crore and the EBITDA margin reached 32.7% in Q3 FY26. The lowest net profit in the series was ₹68.98 crore in Q2 FY26, while the lowest EBITDA margin was 26.2%; Q2 FY27 net profit was ₹77.28 crore and the EBITDA margin was 27.0%.

What else did the company announce?

Metro Brands’ board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 on 15 October 2026, along with the statutory auditors’ limited review report. The same-day filings did not announce a dividend, fund raise or appointment.

The company also disclosed a cybersecurity incident involving unauthorised activity within its IT infrastructure, including its Active Directory environment. It said containment and remediation measures had begun, CERT-In had been notified, and no material financial loss had been identified to date, while the full impact remained under investigation.

What did Metro Brands' management say?

Management maintained its 15% revenue-growth reference for FY27 and estimated that the shift in festive timing reduced quarterly growth by 250–350 basis points. It expected H2 PAT margin to improve over H1 and described 13–15% as the medium- to long-term PAT-margin range, with a 15% ambition.

Management said H2 store additions should exceed the H1 additions of 34 openings and 13 closures, but profitability remained the priority. The company expected annual closures at approximately 2–3% of the store network, Clarke’s exclusive stores in H2 FY27 after supply and assortment stabilise, and FILA expansion from FY28 after a 12–18-month reset.

Management indicated capex of about INR80–100 crore for FY27/FY28, with marketing near 4% of sales and frontline staff costs expected to rise 0.5–1%. It said inventory should improve by March 2027, while working capital was expected to return to roughly 80-odd days by mid-to-end FY28.

The company identified retail rent inflation, scarce sites, factory-specific BIS renewal issues, elevated inventory, higher frontline, marketing and occupancy costs, and the unresolved new-store productivity formula as risks. CEO Nissan Joseph said: “We don't really mind whether we open 70 stores or 125 stores if we believe they all have a chance of profitability.”

How did Metro Brands shares react?

The filing appeared after market hours. From the price when the filing appeared, METROBRAND was down 0.3% after five minutes, 0.6% after 15 minutes and 0.5% after 30 minutes. From the previous close, the stock closed 2.4% lower on the reaction day, was down 3.8% by the next day’s close and was down 12.4% by the fifth session’s close.

The Footwear industry median was up 1.2% on the reaction day, down 0.6% by the next day and down 5.1% by the fifth session. METROBRAND’s relative performance was therefore 3.6 percentage points below the industry on day one, 3.1 percentage points below after one day and 7.3 percentage points below after five days. The Nifty Microcap 250 fell 6.4% over the same five-session window.

Earlier reaction-day moves were mixed: 5.6% on 20 May 2026, 2.0% on 22 May 2025, negative 3.7% on 4 August 2026, negative 3.4% on 7 August 2025 and negative 2.4% on 27 January 2026.