FirstCry parent Brainbees cuts Q1 FY27 loss 34% to Rs 44 Cr; revenue grows 13%

FirstCry parent Brainbees Solutions has narrowed its consolidated loss by 34% year-on-year to Rs 44 crore in the first quarter of FY27.

During the quarter, the omnichannel kids' products retailer clocked a revenue of Rs 2,106 crore, up 13% from Rs 1,863 crore in the year-ago period. The company said this was its strongest consolidated revenue growth in five quarters.

However, profitability remained under pressure. Consolidated adjusted EBITDA was at Rs 89 crore, down from Rs 93 crore in Q1 FY26, while adjusted EBITDA margin declined to 4.2% from 4,98%. Gross margin also fell to 36.5% from 38.5%.

India business rebounds

Brainbees’ India business was the largest revenue contributor in the quarter, supported by initiatives across its online and offline channels. Revenue from the segment rose 18% year on year to Rs 1,456 crore, compared with Rs 1,237 crore the previous year, the strongest in seven quarters.

India GMV grew 12% to Rs 2,381 crore, while orders increased 12% to 10.7 million. Its annual unique transacting customer base also grew 10% to 11.3 million.

The company also expanded its faster-delivery initiatives, with RocketBees now operating across 72 cities, up from 62, while FirstCry Qwik expanded from 5 to 12 cities.

Despite the growth, India’s adjusted EBITDA fell to Rs 84 crore from Rs 107 crore, pulling the segment margin down to 5.7%.

The company’s diapering category continued to face heightened competitive intensity, while its non-diapering portfolio, which accounts for around 85% of GMV, performed well.

International losses narrow

The company’s international business, which includes its Middle East operations, grew revenue 12% to Rs 232 crore.

Adjusted EBITDA losses narrowed to around Rs 17 crore from Rs 22 crore, with the margin improving to -7% from -10% a year earlier. Brainbees said it remained focused on sustainable growth while reducing losses.

Overall, Brainbees’ consolidated GMV increased 12% to Rs 2,807 crore, while its average order value remained largely unchanged at Rs 2,517.

The quarter shows that growth in India is picking up, but profitability remains a work in progress as Brainbees continues to invest in its online, offline and faster-delivery businesses.