FirstCry Q1: Loss Narrows 12% YoY To INR 66.5 Cr

Omnichannel kidswear brand FirstCry’s parent Brainbees Solutions posted a 12% decline in its consolidated net loss to INR 66.5 Cr in Q1 FY26 from INR 75.6 Cr in the year-ago quarter. Sequentially, loss declined 41% from INR 111.5 Cr. 

The reduction in loss came on the back of a notable decline in loss incurred due to exceptional items. FirstCry incurred an exceptional loss of INR 6.5 Cr during the quarter, down about 47% from INR 12.3 Cr a year ago. 

Meanwhile, operating revenue rose 13% to INR 1,862.6 Cr during the quarter under review from INR 1,652.1 Cr in Q1 FY25. However, the top line saw a 3.5% decline from INR 1,930.3 Cr in the preceding March quarter.

Including other income of INR 48.4 Cr, the company’s total income increased 14% YoY to INR 1,911 Cr. Total expenses zoomed 14% YoY to INR 1,829.4 Cr.  

Adjusted EBITDA rose 25% to INR 92.7 Cr from INR 74.3 Cr in Q1 FY25. The company also claimed that it turned free cash flow positive in Q1 FY26.

During the quarter, FirstCry’s gross merchandise value (GMV) grew 9% YoY to INR 2,518.4 Cr. Its unique transacting customer base grew 14% YoY to about 1.1 Cr. 

The company classifies its businesses into three categories – India multi-channel, international and GlobalBees. Here’s a closer look at how each segment performed in the quarter.

India Multi-Channel Business Sees Moderate Growth

The company’s core business segment, which integrates FirstCry’s online and offline retail presence in India, saw its revenue surge 38% YoY to INR 1,236.6 Cr in the quarter. It is the lone profitable business vertical for the company, bringing in a profit of INR 40 Cr in the quarter. 

The bottom line for this vertical improved 21% YoY. Meanwhile, adjusted EBITDA improved 12% YoY to INR 106.7 Cr. 

The company’s orders served in the quarter rose a meager 6% to 9.5 Mn from 9 Mn orders served in the year-ago quarter. 

The company said that the growth for this segment was moderate due to challenges it faced in the last-mile delivery ecosystem, lower footfalls in “offline stores due to broad based consumer slowdown and unseasonal rainfall”.

Reduction In Burn For International Business

Despite FirstCry continuing its Middle East expansion bid, its international business continued to be loss making. The vertical reported a loss of INR 21.5 Cr, down 30% from INR 30.5 Cr loss incurred in the year-ago quarter. Adjusted EBITDA loss for the vertical fell 30% YoY to INR 21.5 Cr. 

The segment’s revenue grew 13% YoY to INR 207.3 Cr. Sequentially, revenue remained flat.

FirstCry, which currently has a presence in the UAE and Saudi Arabia, said it is optimising its top line mix for the international vertical. However, the GMV for the vertical only grew 3% YoY to INR 3,919 Cr. 

Fresh Investment In GlobalBees

FirstCry’s house of brands, GlobalBees, reported a 6% YoY jump in loss to INR 20.8 Cr in the June quarter. On a QoQ basis, loss declined 12% from INR 23.5 Cr loss. Meanwhile, EBITDA declined 11% YoY to INR 4.1 Cr. 

GlobalBees reported a strong 31% YoY jump in revenue to INR 426.5 Cr. Sequentially, its revenue rose 7% from INR 39.8 Cr. 

The company said that the margins for GlobalBees were weighed down by the impact of rationalisation of some brands during the quarter. Without naming the brands, it said that they operate within core categories but were seeing a lower revenue growth. 

GlobaBees counts home care brand The Better Home, jewellery brand Yellow Chimes, hair care brand Rey Naturals, healthy snack brand The Butternut Company, among others, in its portfolio.

Along with the financial disclosure, FirstCry said it will invest an additional INR 19.96 Cr in GlobalBees out of proceeds of its IPO within two months. 

FirstCry raised INR 1,601.7 Cr from its initial public offering in August 2024. Of this, the company has now utilised INR 1,040 Cr. From its IPO proceeds, the company had proposed an additional investment of INR 169 Cr in GlobalBees. The company has invested about INR 84 Cr in the subsidiary till date.

Shares of FirstCry ended today’s trading session 0.09% lower at INR 374.75 on the BSE.

(Edited by: Vinaykumar Rai)