Brainbees Solutions, the parent company of baby and kids' products retailer FirstCry, reported a sharp 75.1% reduction in net loss to ₹12.6 crore for Q2 FY27, alongside a 14.1% rise in operating revenue driven by strong growth in its India business.
- Net loss narrowed 75.1% year-over-year to ₹12.6 crore
- Revenue increased 14.1% to ₹2,395.8 crore, led by 18.6% growth in India
- Adjusted EBITDA margin squeezed to 4.9% amid cost pressures
What happened
FirstCry's parent company, Brainbees Solutions, saw its Q2 FY27 net loss decline dramatically by 75.1% year-over-year to ₹12.6 crore from ₹50.5 crore the previous year. Sequentially, losses also decreased 71.4% from ₹43.9 crore in Q1 FY27. The company's operating revenue rose 14.1% to ₹2,395.8 crore, supported by strong revenue performance in India.
Adjusted EBITDA fell slightly by 2.3% to ₹117.5 crore with margin contraction from 5.8% to 4.9%, driven by inflationary pressures on raw materials affecting manufacturing costs. The international business reduced its EBITDA loss by 15.6%, reflecting operational efficiencies despite softer revenue growth. The branded products vertical GlobalBees posted improved revenues and doubled margins.
Why it matters
The sharp reduction in net loss and steady revenue growth signal FirstCry's improving financial health as it inches closer to profitability. India remains the primary growth driver, with revenue up 18.6% year-over-year, while the international segment showed resilience in a volatile geopolitical environment.
Despite cost inflation pressures impacting profitability margins, the company's operational adjustments, including enhancing logistics services and its quick commerce offering, position it for sustained growth. These results reflect management's focus on increasing customer engagement, purchase frequency, and expanded service coverage.
What to watch next
FirstCry plans to prioritize expanding its logistics platform RocketBees and scaling the FirstCry Qwik quick commerce service. The company will also focus on assortment changes and store expansion to capitalize on growing demand in the baby and kids’ products segment.
Investors will monitor the company's ability to further improve EBITDA margins amid raw material cost inflation and how effectively it drives growth in international markets, particularly the Middle East. Seasonal trends and the timing of sales events remain factors influencing operating performance in coming quarters.