Metro Brands (METROBRA IN) – Q2FY26 Result Update – Macro tailwinds to trigger demand revival in 2H – HOLD
Published on 17 Oct 2025
MBL's growth plans remain on track, supported by 1) Entry into new cities. 2) Healthy online/omni-channel contribution, accounting for ~14.2% of total sales (39% YoY sales growth). 3) 100bps increase in share of products priced above ₹3,000 now making up ~54% of total sales. 4) Accelerated store openings in Walkway format (10 in 2Q26) aimed at capturing the value-conscious consumer (Tier-2 cities) and positioning MBL as a comprehensive footwear destination. We believe the benefits of GST 2.0, along with tailwinds from the upcoming wedding season, will accelerate growth in 2H26. we see the key growth delta emerging from Clarks, FILA and Foot Locker as MBL launches new EBO’s and complements its product range. We estimate 16.6% EPS CAGR over FY25-FY28 and assign a DCF based target price of Rs1276 (Rs1302 earlier). We expect back ended returns given rich valuations of 58.6xFY28 EPS. Retain Hold.
