Metro Brands (METROBRA IN) – Q2FY27 Result Update – Festival season begins well, all eyes on sustenance – HOLD
Published on 16 Oct 2026
Metro’s revenue missed our estimates, impacted by the delayed festive season, while healthy GM drove the PAT beat. We remain cautious in the near term, given 1) muted store metrics, with sales/store up just 1.4% YoY in Q2 2) continued delays in new-format store openings and scalability amid supply constraints, 3) persistent inflationary pressures might weigh on near-term demand despite a healthy festive season, and 4) limited margin expansion potential amid elevated OPEX. We estimate 13% EPS CAGR over FY26–FY29 and value MBL at 45xSept28 EPS (DCF earlier) and arrive at TP of Rs924 (Rs964 earlier). Following the recent correction, downside appears limited as stock trades at 48.3x/42.2x FY28/FY29 EPS. MBL lacks near term triggers given that many of its new brands are in an elevated capex/opex mode. We expect the stock to remain range-bound in the near term. Retain Hold
