Synopsis: Shares of Metro Brands Ltd jumped 10% after reporting strong Q3 FY26 results, with PAT rising 88% QoQ on festive-led demand, GST benefits on footwear, store additions, and improving omni-channel performance.
The shares of this company, which is one of the largest Indian footwear & accessories speciality retailers and is among the aspirational Indian brands in the footwear category, had its shares in momentum today after the company reported robust results with growth in several of its performance metrics.
With the market cap of Rs 29,108 crore, the shares of Metro Brands Ltd gained about 10% and made a high at Rs 1171.50, compared to its previous day closing price of Rs 1060.20, and are trading at a PE of 75, whereas its industry PE is at 33.6.
Q3 FY26 Result
The revenue from operations for the company stood at Rs 811 crore when compared to Rs 703 crore in Q3 FY25, up by about 15 per cent on a YoY basis and on a QoQ basis up by 25 per cent from Rs 651 crore in Q2 FY26.
When it comes to profitability, the company has gone from an Rs 95 crore profit in Q3 FY25 to an Rs 130 crore profit in Q3 FY26, up 37% YoY, and from Rs 69 crore in Q2 FY26, up about 88% QoQ.
Business Highlights
The growth in Q3 FY26 can be attributed to the increase in festive and wedding season demand and the impact of the recent reduction in GST on shoes below Rs 2,500. In addition to demand growth due to the reduction in GST, there is a continued store expansion taking place with 35 new stores being added in Q3 FY26.
However, net new stores have only gone up by 24 because of 11 store closures. This is indicative of a more cautious approach to optimising the network of stores. In addition, the company’s e-commerce business has been performing well, with an increase of 24% over the previous year.
As a result, e-commerce now represents 12% of total revenue compared to 11.1% in Q3 FY25, which is indicative of the company continuing to strengthen its omnichannel strategy and grow its digital footprint. This is also helping to offset the effects of reduced physical store numbers and drive overall revenue growth.
Profitability for FY26 has been impacted negatively by the inclusion of ‘one-off’ exceptional items. Specifically, the company incurred an Rs 3.39 Cr charge to PAT for the increase in actuarial obligations relating to Gratuity and Leave Encashment for the year due to the implementation of the New Labour Code.
Previously in FY25, the company incurred a one-time tax-related charge of Rs 25 Cr to PAT. However, when isolating the non-recurring exceptional items, leverage on underlying operational stability and growth primarily due to the recovery of demand are coupled with an improved channel mix.
The presence of Rekha Jhunjhunwala with a 4.79% stake underscores strong confidence from a marquee long-term investor in the company’s business model. Such ownership typically reflects belief in sustainable growth, sound governance, and scalable execution. Her continued holding also lends credibility and positive sentiment, often attracting broader institutional and retail investor interest.
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