Metro Brands Q1 profit dips 5 per cent despite revenue crossing Rs 720 crore

MUMBAI: Walking the retail runway isn’t always a straight stride. Metro Brands stepped into the new financial year with stronger sales, but softer profits showed that even a well-fitted business can occasionally feel the pinch.

Metro Brands reported a mixed performance for the quarter ended 30 June 2026, with revenue growing at a healthy pace even as profit slipped marginally year-on-year. The premium footwear retailer posted standalone revenue from operations of Rs 701.62 crore, up 14.1 per cent from Rs 615.09 crore in the corresponding quarter last year. Total income rose to Rs 727.40 crore from Rs 643.03 crore.

However, higher operating costs weighed on the bottom line. Standalone profit before tax declined to Rs 122 crore from Rs 128.59 crore, while profit after tax fell 5.4 per cent to Rs 91.37 crore, compared with Rs 96.62 crore a year earlier. Earnings per share stood at Rs 3.35, against Rs 3.55 in the year-ago period.

On a consolidated basis, revenue from operations climbed 14.7 per cent to Rs 720.36 crore from Rs 628.24 crore, while total income increased to Rs 746.67 crore from Rs 656.82 crore. Consolidated profit before tax eased to Rs 126.75 crore from Rs 130.82 crore, and profit after tax slipped 3.6 per cent to Rs 95.26 crore, compared with Rs 98.80 crore in the corresponding quarter last year. Total comprehensive income stood at Rs 96.07 crore.

The company incurred Rs 324.23 crore towards purchases of stock-in-trade during the quarter, while employee benefit expenses increased to Rs 75.89 crore from Rs 62.96 crore a year earlier. Other expenses also rose to Rs 137.89 crore, reflecting continued investment in operations and expansion.

Alongside its financial results, Metro Brands announced a series of board-level changes. Independent director Arvind Kumar Singhal will step down on 10 August 2026 after completing his second five-year term. The board has appointed Sonny Iqbal as an additional non-executive independent director with effect from 5 August 2026, subject to shareholder approval, while recommending the reappointment of Managing Director Farah Malik Bhanji for another five-year term beginning 1 April 2027.

The board also approved the introduction of the Metro Brands Employee Stock Option Scheme 2026 (ESOS 2026), under which up to 54.50 lakh stock options can be granted to eligible employees, subject to shareholder approval. The proposals also include amendments to the existing ESOP 2008, secondary acquisition of shares through a trust route and extending stock options to employees of subsidiary companies.

During the quarter, the company granted 1,02,993 employee stock options under its existing ESOP 2008, while 8,770 options were exercised. Metro Brands also confirmed that its 49th Annual General Meeting will be held on 16 September 2026, with 4 September 2026 fixed as the record date for determining shareholders eligible for the final dividend for FY26, subject to approval at the AGM.