FIRSTCRY - Brainbees Solut.

📊 NSE: FIRSTCRY 🏢 Trading 📅 Last Updated: 12/13/2025 19:51

💰 Financial Performance

Revenue Growth by Segment

India Multi-Channel revenue grew 7.8% YoY to INR 1,381.1 Cr in Q2 FY26 and 7.7% YoY to INR 2,617.7 Cr in H1 FY26. International revenue grew 13.2% YoY to INR 235.7 Cr in Q2 FY26 and 13.1% YoY to INR 443.0 Cr in H1 FY26. Globalbees revenue grew 13.9% YoY to INR 492.8 Cr in Q2 FY26 and 21.4% YoY to INR 919.3 Cr in H1 FY26.

Geographic Revenue Split

India is the dominant market, contributing approximately 65.7% of total H1 FY26 revenue (INR 2,617.7 Cr out of INR 3,980.0 Cr). Globalbees (multi-region) contributes 23.1% (INR 919.3 Cr), and International (UAE and KSA) contributes 11.1% (INR 443.0 Cr).

Profitability Margins

India Multi-Channel gross margin was 37% in Q2 FY26, a slight dip from 37.3% YoY due to increased discounting. International gross margins expanded by 300 basis points to 26.3% in Q2 FY26 from 23.3% YoY. Globalbees gross margins for H1 FY26 were 45.5%.

EBITDA Margin

Consolidated Adjusted EBITDA margin improved to 5.8% in Q2 FY26 from 4.2% YoY. India Multi-Channel Adjusted EBITDA margin rose to 9.1% in Q2 FY26 from 8.6% YoY. International Adjusted EBITDA margin improved significantly to -8% in Q2 FY26 from -19% YoY, representing an 1100 bps improvement.

Capital Expenditure

Not disclosed in absolute INR Cr for future periods; however, the company defines Free Cash Flow as net cash from operations less acquisition of property, plant and equipment and intangible assets. Cash outflow for lease rentals was INR 59 Cr in Q2 FY26.

⚙️ Operational Drivers

Raw Materials

As a retailer and brand aggregator, primary inventory costs are tied to product categories: Baby apparel, toys, diapers, baby gear, home appliances, and health & personal care products.

Key Suppliers

Not disclosed in available documents; however, the company operates through third-party brands and in-house brands like BabyHug.

Capacity Expansion

The company expanded its in-house delivery network from 4 cities to 13 cities to improve logistics efficiency and customer experience. India omni-channel orders grew 8% YoY in Q2 FY26.

Raw Material Costs

Cost of goods sold (COGS) is approximately 63% of revenue for the India business and 73.7% for the International business, based on reported gross margins of 37% and 26.3% respectively.

Logistics & Distribution

Advertising and sales promotion expenses were 8.3% of revenue in Q2 FY26, down from 9.1% YoY. Indirect expenses were 7.0% of revenue, down from 7.3% YoY.

📈 Strategic Growth

Expected Growth Rate

20%+

Growth Strategy

Growth is driven by focusing on 'Core Categories' which witnessed 30%+ growth in H1 FY26. The company is rationalizing non-core brands in Globalbees to improve margins and is expanding its in-house delivery network. International expansion in UAE and KSA is leveraging the 'India playbook' to achieve profitability faster.

Products & Services

Baby and kids apparel, toys, diapers, baby gear, preschool education services (Edubees), home improvement products, and health & personal care items.

Brand Portfolio

FirstCry, BabyHug, Globalbees, Pine Kids, Cute Walk.

Market Expansion

Continued focus on the Middle East (UAE and KSA), where the company achieved India-level gross margins within 4 years compared to 7 years in the domestic market.

Strategic Alliances

Globalbees operates as a house of brands with subsidiaries including HS Fitness, DF Pharmacy, Candes Technology, and Healthyhey Foods.

🌍 External Factors

Industry Trends

Shift toward omni-channel retail (online + offline) and government-led GST reforms (transitioning 1/3 of the portfolio to 5% GST) which is expected to spur long-term demand.

Competitive Landscape

Competes with general e-commerce players like Flipkart and specialized baby-care retailers.

Competitive Moat

Durable advantages include a strong brand identity in the parenting segment, a massive customer base of 10.5 million unique transacting users, and an expanding in-house delivery network that provides cost and speed advantages.

Macro Economic Sensitivity

Highly sensitive to Indian fiscal policy (GST reforms) and consumer spending patterns during festive seasons.

Consumer Behavior

Consumers showed a tendency to defer purchases in anticipation of GST rate cuts, leading to moderated growth from mid-August to late September 2024.

Geopolitical Risks

Operations in the Middle East (UAE and KSA) expose the company to regional geopolitical stability and trade regulations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to GST reforms and e-commerce settlement policies (e.g., Flipkart's new policy) which affect revenue recognition and reporting.

Taxation Policy Impact

One-third of the company's portfolio transitioned to a 5% GST rate, which is expected to lower consumer prices and increase volume demand.

⚠️ Risk Analysis

Key Uncertainties

Short-term demand volatility due to regulatory changes (GST) and the execution risk associated with rationalizing non-core brands in the Globalbees portfolio.