Metro Brands tightens its laces for another quarter of strong growth

A shoo-in to lead the pack, its premium push and store rollout leave value players dragging their heels

Even as the broader footwear market braces for low single-digit revenue growth in the April–June quarter (Q1) of 2025–26 (FY26), Metro Brands — the sector’s largest listed player by market capitalisation — is likely to stay ahead of the pack on both revenue and profit. This would mark its third straight quarter of double-digit year-on-year (Y-o-Y) revenue growth. Although the stock is down 8.8 per cent over the past six months, it has held up better than its listed peers, which have averaged a 20 per cent decline. 

After growing 10 per cent in the January–March quarter (Q4) of 2024–25 (FY25) — driven by stronger demand in the premium and casual footwear segments — brokerages expect Metro’s Q1FY26 growth to fall in the 10–15 per cent range, led largely by new store openings. 

Kotak Research estimates net store additions at 20 in Q1FY26, with Metro and Mochi accounting for 8 each, and the rest coming from Crocs India and Walkway. The overall store count is likely to rise 8.3 per cent, while average revenue per store may edge up by 2 per cent, though an early monsoon and Eid could dampen footfall. 

In contrast, value-focused brands like Relaxo Footwears and Bata India, despite a favourable base, reported revenue declines of 1–7 per cent in Q4FY25. With demand in the value segment still muted, those trends are expected to continue into Q1FY26. Bata is projected to grow by just 2 per cent. 

Margins are expected to improve for Metro as well. After a 350 basis-point (bps) expansion in Q4FY25, its Q1FY26 margins could rise by 90 bps Y-o-Y and 151 bps sequentially, aided by operating leverage. Campus Shoes reported flat margins in Q4FY25, while Bata and Relaxo saw a decline due to higher costs and weaker operating efficiency. All three are expected to report lower margins in Q1FY26 on a sequential basis. 

 

Beyond its own brands — Metro, Mochi, and Walkway — the company is also leaning on third-party partnerships to widen its footprint. Alongside existing tie-ups with Fila and Foot Locker, it recently signed a long-term agreement with British brand C&J Clark International. The deal gives Metro exclusive distribution rights for Clarks across offline and digital channels in India and neighbouring countries.

 

Analysts at JM Financial, led by Gaurav Jogani, see the move as a natural extension of Metro’s premium lineup. The company already generates 88 per cent of its revenue from footwear priced above ₹1,500. JM has a ‘buy’ rating on the stock, with a price target of ₹1,400.

 

Emkay Research says Metro is closing gaps in its portfolio and strengthening its appeal as a platform for global brands. Analysts Devanshu Bansal and Mohit Dodeja say the Clarks partnership sharpens its position in the premium casual category. They note that Metro has clocked 15 per cent annual revenue growth over the past decade — and could exceed that pace in the years ahead. Its operating margins of 21–22 per cent, and its ability to convert 60 per cent of operating profit into cash flow, leave room for self-funded growth and shareholder payouts. Emkay also has a ‘buy’ rating with a ₹1,400 target.