Metro Brands Limited — PPTs, 22-05-2025: Investor Presentation

1. Financial Highlights:

Metro Brands posted revenue of Rs 2,507 Cr for FY25, up 6.4% YoY, with EBITDA of Rs 760 Cr at a 30.3% margin, showing slight margin expansion. PAT declined 14.7% to Rs 354 Cr, affected by a one-time Rs 25 Cr tax charge linked to the Fila business. Q4 revenue grew 9.4% YoY to Rs 632 Cr, with EBITDA margin rising to 31.1%. Ecommerce contributed Rs 259 Cr (10.6% of sales), growing 20% YoY. Working capital improved as inventory normalized after prior front-loading, with net core working capital days down to 73 and cash doubling to Rs 95 Cr.

2. Strategic Initiatives & Growth Drivers:

The company expanded its store base by a net 70 to 908 stores across 205 cities, focusing on sports and athleisure through exclusive partnerships with Foot Locker and New Era, including launching kiosks in key metros. Fila is being relaunched with greater local manufacturing. Investments continue in omni-channel capabilities and supply chain enhancements, with capex primarily directed at store growth and efficiency improvements.

3. Business Developments:

Metro Brands inked long-term exclusive deals with premium brands New Era and Foot Locker, opening flagship stores in India. Foot Locker expansion remains cautious due to supply chain uncertainties. Fila inventory liquidation is complete with plans for new Exclusive Brand Outlets in H2 FY26. Partnerships with FitFlop, Crocs, and others are being deepened to reinforce its multi-brand platform.

4. Market Position & Competitive Advantage:

With over 70 years in retail, Metro Brands is a leading omni-channel footwear player in India, operating a capital-light model and commanding 74% owned-brand sales at MBOs. Its broad footprint across mid to premium segments, extensive vendor base (250+), AI-driven supply chain, and strong gross margins offer scale and differentiation. The brand portfolio and management expertise secure leadership in aspirational urban and emerging Tier II/III markets.

5. Investor Implications:

Metro’s expanding store network, omni-channel growth, and strategic brand tie-ups position it well for positive growth potential amid shifting consumer preferences. Margin improvement and cost control reflect operational strength. Investors should monitor supply chain normalization, execution of Fila and Foot Locker expansions, and the tax charge impact, while assessing ecommerce growth and new partnerships as key growth drivers.