Metro Brands Ltd. share price target

Metro Brands’ (MBL) revenue grew 15% YoY in 1QFY27, driven by demand recovery from mid-Jun'26, despite a muted Apr-May period due to weak consumer sentiment amid challenging the global backdrop.

We maintain BUY on Metro Brands while increasing our TP by ~6% to Rs1,250 (57x Mar-28E EPS) from Rs1,175. TP increase is largely earnings-led, helped by ~4% revenue-led EBITDA beat in Q4 and better commentary on margin protection (vs our cautious stance).

MBL's growth plans remain on track, supported by 1) Entry into new cities. 2) Healthy online/omni-channel contribution, accounting for ~12% of total sales (53% YoY sales growth in Q4. 3) Accelerated store openings in Walkway format (12 in 4Q26) aimed at capturing the value-conscious consumer (Tier-2 cities) and positioning MBL as a comprehensive footwear destination. We see the key growth delta emerging from MetroActiv, Clarks, FILA and Foot Locker as MBL launches new EBO's and complements its product range. We estimate 15.4% EPS CAGR over FY26-FY28 and assign a DCF based target price of Rs1187 (Rs1156 earlier). We expect back ended returns given rich...

MBL continues to guide a 15-18% long-term revenue CAGR. However, the confidence in delivering the growth guidance has improved, driven by early signs of replacement demand kicking in (after a lumpy wardrobe refresh postCovid in FY23).

Metro Brands (MBL) delivered robust 15% YoY revenue growth (vs. our est. ~12% YoY) in 3QFY26, driven by an improvement in in-store sales (+11% YoY vs. 4%/10% YoY in 1Q/2Q) on the back of acceleration in area additions (+11% YoY) and robust growth in e-commerce (+24% YoY).

Metro Brands (MBL) delivered in-line 11% YoY revenue growth in 2Q, driven by an improvement in in-store sales (+10% YoY vs. 4% YoY in 1Q), acceleration in store additions, and robust 39% YoY online growth.

We reiterate BUY on Metro, while revising up our TP by ~14% to Rs1,475 (60x Sep-27E pre-IndAS EPS). The change in TP is led by near-equal contribution from upward revision of estimates and earnings rollover.

Metro Brands’ (MBL) 1QFY26 revenue grew 9% YoY on a low base (-1% YoY in 1QFY25), driven by a 45% growth in E-commerce and a modest ~4% YoY growth in in-store sales (on the back of ~8% YoY area additions).

We cut FY26/FY27 EPS estimates by 1.9%/4.5% driven by 1) Higher store additions in a subdued demand environment, to likely increase overheads in the near term. We estimate margin contraction of 64bps/14bps in FY26/FY27 and 2) Weak store economics, driven by lower throughput/store amidst continued muted consumer sentiment. However, we believe operating parameters may improve in medium term only, led by 1) Stable store-level economics, aided by expansion into Tier-2 and Tier-3 cities. 2) Normalization of BIS-related issues in...

Leveraging its strong balance sheet and best-in-class retail pedigree, Metro is prudently plugging portfolio gaps and remains a platform of choice for thirdparty brands looking to enter India.

We cut FY26/FY27 EPS estimates by 0.7/3.5%, factoring in lower other income due to Rs4bn one time dividend paid in 3Q25. Operating parameters are showing an improvement led by 1) better demand conditions, supported by a higher number of wedding days in 1H26. 2) Stable store-level economics, aided by expansion into Tier-2 and Tier-3 cities. 3) BIS-related issues are expected to fully normalize over the next 912 months and 4) peaked out losses in FILA and expected scale up in Foot Locker and FILA from 2H26. Metro Brands Ltd (MBL)'s growth plans remain on track led by 1) Entry into...

Metro’s Q3 results were largely inline – Revenue growth inched up to doubledigits (11%), aided by recovery in revenue per sqft (vs declining trend), ~9% network expansion, and faster ~37% growth in the e-com channel (~11% of sales). With EOSS and higher number of weddings, Metro expects to sustain the improving growth trajectory in Q4.

Metro Brands (MBL) reported in-line 3Q results, with revenue growth recovering to ~11% YoY (vs. 5% YoY in 2Q), driven by a 43% YoY growth in Ecommerce sales. In-store sales grew ~8% YoY (vs. 5% YoY in 2Q), led by ~9% YoY area additions.

We initiate coverage on Metro with BUY and DCF based TP of Rs1,500 (implied target multiple of 70x Dec-26 EPS). Metro is the epitome of financial discipline, given long-term mid-teen revenue CAGR and consistent rewards to shareholders (~30% dividend payout).

Metro Brands’ (MBL) stock performance has been flattish in CY24 and has underperformed benchmark indices due to both internal and external factors. Internal factors included: a) the liquidation of old FILA inventory, which impacted gross margins, and b) a decline in revenue per sq. ft., driven by a lower share of Crocs in the incremental store rollouts.

Demand remains soft; expect pick-up in second half

Metro Brands (MBL)’s revenue grew 5% YoY (in line, -1% YoY in 1Q), driven by ~9% YoY area additions. Gross profit grew 2% YoY (3% miss) due to ~100bp impact of FILA inventory liquidation at higher discounts.

Demand remains soft; premiumisation drive continues

Metro’s revenue declined 1% YoY (9% miss), due to weak same-store sales (SSS); however, store additions supported revenue. A higher contribution of INR3,000+ ASP products and own-brand products boosted gross margins.