METROBRAND

: Long-Term Growth Beyond Q1 Headwinds

(MBL) recorded double-digit revenue growth of 15% year-on-year, driven by a strong sales recovery in June following muted demand in April and May. However, higher employee, marketing, depreciation, and store-expansion expenses led to a 5% decline in net profit. EBITDA & Profit Margin Outlook: Margins were squeezed during the quarter due to rising operational and occupancy costs for new store formats. MBL management expects operating profit margins to stabilize back into the 13–15% range for FY27, backed by a stronger performance expected in the second half of the fiscal year. Aggressive Retail Network Expansion: Network expansion remains on track after adding a net 9 stores in Q1 to reach a total footprint exceeding 1,040 locations. Store additions will accelerate in upcoming quarters across Tier 1, Tier 2, and Tier 3 cities to acquire new customers and drive same-store sales growth. Scaling Premium International Brands: Growth is backed by high-potential brand partnerships, including exclusive standalone Clarks store launches starting Q3FY27, pilot testing for FILA, and a target to open 300 to 500 exclusive stores across its sports and athleisure portfolio over the next 5–7 years. Supply Chain Challenges with BIS Compliance: Non-compliance and delayed Bureau of Indian Standards (BIS) certifications for overseas vendors have created supply chain bottlenecks. This regulatory lag has temporarily delayed the product ramp-up for key brands like Footlocker, New Era, and Metro Activ.