Financial Performance Highlights

  • Q4 FY26 standalone business posted 20% revenue growth year-over-year
  • EBITDA grew 20% year-over-year
  • PAT (Profit After Tax) increased 18% year-over-year
  • Digital commerce business grew 53% year-over-year and now represents 12% of total revenues
  • Sales per square foot maintained at ₹4,500

Store Expansion and Network

  • Company crossed the 1,000-store mark in Q4 FY26 with net addition of 42 stores
  • Ended the quarter with total of 1,032 stores
  • Opened first two FILA stores since acquisition
  • New distribution center opened in March 2026 adding 200,000 square feet of storage capacity

Management Guidance

  • PAT growth guidance: mid-teen percentage range
  • EBITDA margin guidance: high-20s to low-30s percentage range
  • Sales growth guidance: 15% year-over-year
  • E-commerce expected to represent 12-15% of total business in near term

Input Cost and Inflation Management

  • Company facing approximately 10% input cost inflation overall
  • Mitigation strategies include forward buying of raw materials in bulk
  • Maintains six months of inventory with order space for additional period protected in price
  • No immediate price hikes planned beyond normal inflation adjustments

Brand Portfolio Strategy

  • Multiple banners including Metro Mochi, FILA, Foot Locker, Clarks, and Walkway
  • Each banner has significant growth opportunity in terms of store count
  • FILA repositioning underway with local manufacturing - expected to become meaningful to numbers in next 18 months
  • Walkway format targeting Tier-3 and Tier-4 towns with deep penetration potential

Regional Performance

  • Eastern India business maintained at 13-15% of total (14% for the year)
  • Southern India continues to grow faster
  • No significant decline reported in any region

Operational Updates

  • Technology upgrade underway with new POS system rollout starting June 2026, completion expected by year-end
  • AI agent development for internal workflows
  • SAP upgrade planned for later in the year
  • Key leadership hires: Chief Technology Officer, Chief Marketing Officer, Chief Product Officer, Chief Digital Insights Officer

Risk Factors

  • Monitoring Gulf crisis for potential impact on raw materials and input costs
  • BIS (Bureau of Indian Standards) challenges affecting Foot Locker expansion and certain imported products
  • Geopolitical issues potentially causing disruptions
  • Rental market competition stabilized but not returned to previous favorable conditions

Consumer Sentiment and Market Position

  • Premium customer base provides insulation from inflation impacts
  • Gaining market share according to management commentary
  • New customer acquisition driving growth in back half of the year
  • Shift from unorganized to organized market benefiting value brands like Walkway

Store Expansion Outlook

  • Opportunity to open approximately 50 stores across new brands (FILA, Foot Locker, Clarks, MetroActiv) in FY27
  • Expansion contingent on finding right locations, rentals, and timing
  • BIS mitigation remains key consideration for Foot Locker and MetroActiv brands