A Perspective on What Lies Ahead

Dear Shareholders,

It is my privilege to present Metro Brands Limited’s Annual Report for the financial year ended March 31, 2026.

This was a year in which steady progress gathered visible momentum. The business strengthened as the year advanced and concluded with a particularly encouraging final quarter. We delivered healthy growth while sustaining profitability, reflecting the continued relevance of our brands, the resilience of our operating model and the disciplined execution of our teams.

India’s growth story continues to create a compelling long-term opportunity. Rising aspirations, increasing brand awareness, formalisation of retail and the wider adoption of digital commerce are reshaping consumer markets across the country. This change is visible beyond the largest cities, as customers across emerging urban centres seek greater choice, better quality and more engaging retail experiences.

The footwear market is evolving alongside these aspirations. Consumers increasingly move between formal, casual, comfort, fashion and performance categories, often expecting a brand to serve several aspects of their lifestyle. Premiumisation and casualisation are gaining ground, while sports and athleisure are becoming part of everyday wardrobes. MBL’s broad portfolio, spanning customer segments, occasions and price points, positions us well to participate in these shifts.

Crossing the 1,000-store milestone during the year was an important moment in our journey. It represents the trust built over decades and our growing ability to reach customers across India. However, expansion for us is never an exercise in pursuing a store count. We enter a market when we see a clear customer need and an opportunity to build a viable, enduring business. Every new store must strengthen accessibility, complement the existing network and meet our standards of sustainable economics.

The same principle guides the brands and formats we introduce. When we partner with a global brand or create a new retail concept, the objective is to fulfil a customer need that is not being adequately addressed through our existing portfolio. The success achieved with Crocs and FitFlop has strengthened our confidence in this approach. Our newer partnerships and formats across comfort footwear, sneaker culture, sports performance and athleisure are extending the choices available to Indian consumers. MetroActiv, Foot Locker, FILA, New Era and Clarks each address a distinct customer expectation and broaden the relevance of our platform.

Even as we widen our network, portfolio and capabilities, financial discipline remains central to how we operate. We do not pursue growth at the expense of profitability. Store locations are evaluated carefully, partnerships are assessed against clear strategic and return criteria, and capital is allocated selectively. This discipline has enabled us to gain market presence while protecting the strength of the underlying business. Our aim is not growth at any cost, but growth that can be sustained through changing consumer and economic cycles.

As the organisation expands, its capabilities must grow with it. During the year, we invested in distribution infrastructure, supply-chain capacity, talent, marketing and customer engagement. These investments are improving product availability, enabling faster replenishment and creating the organisational-readiness required to manage a larger network and a broader portfolio.

Our presence today extends well beyond physical stores. Customers discover, evaluate and purchase products across brand websites, marketplaces, stores and omnichannel touchpoints. We have continued strengthening the systems that connect these channels, including our warehouse and order-management capabilities. The next phase of retail will increasingly be shaped by data, automation and emerging technologies. Companies that use technology to understand customers better, improve decisions and execute with greater speed will be better placed to progress. We intend to remain firmly aligned with this direction.

Governance provides the foundation for this growth. The Board continues to oversee strategy, risk, capital allocation, organisational capability and stakeholder interests. As our portfolio and operating environment become more complex, transparency, accountability and responsible decision-making will remain essential to preserving trust and building an institution that can endure.

Growth also brings a greater environmental responsibility. As our network expands, we recognise the need to reduce and responsibly manage the footprint associated with our operations. Our footwear recovery ecosystem channels discarded footwear towards recycling, co-processing and energy recovery, and during this year as well, we achieved full recycling coverage against the footwear we sold. We also continued initiatives involving water conservation and afforestation, including the restoration of water-harvesting structures and the planting of fruit-bearing trees to support communities and local livelihoods.

Our progress must create value beyond the organisation. Each new store and business format generates employment, develops retail talent and supports a wider ecosystem of partners and service providers. Our community programmes across education, healthcare, employability and livelihood development seek to strengthen this wider contribution. We want MBL’s growth to create opportunity for the people and communities that form part of our journey.

The 1,000-store milestone reflects how far we have travelled, while the growing breadth of our portfolio shows how much opportunity lies ahead. We enter the next phase gaining momentum, with a thousand steps forward creating the foundation for many more. We will continue to expand thoughtfully, serve evolving customer needs and embrace capabilities that make the business stronger, more responsive and more sustainable.

On behalf of the Board, I extend my sincere gratitude to our customers, employees, brand partners, vendors, shareholders and communities. Their trust, commitment and contribution continue to shape our progress. I remain confident that the strength of our brands, the dedication of our people and the discipline of our approach will enable MBL to create enduring value in the years ahead.