Metro Brands (METROBRA IN) – Q3FY26 Result Update – Macro tailwinds improve demand outlook – HOLD
Published on 28 Jan 2026
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 (24% YoY sales growth). 3) 100bps increase in share of products priced above ₹3,000 now making up ~55% of total sales. 4) Accelerated store openings in Walkway format (7 in 3Q26) 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 15.5% EPS CAGR over FY26-FY28 and assign a DCF based target price of Rs1181 (Rs1214 earlier). We expect back ended returns given rich valuations of 54.4xFY28 EPS. Retain Hold.
