Brainbees Solutions, the parent company of FirstCry, reported a significant improvement in profitability during Q1 FY27. According to reports from CNBC TV18, the company's consolidated net loss narrowed to ₹43.9 crore in the first quarter from ₹66.5 crore in the year-ago period, representing a 33% improvement in loss reduction. This improvement was slightly better than the previously reported ₹31 crore loss, indicating continued progress in the company's financial turnaround.
The company demonstrated strong revenue growth with consolidated revenue rising 13% year-on-year to ₹2,106.2 crore in Q1 FY27, compared with ₹1,862.5 crore in the same quarter of the previous fiscal. As reported by CNBC TV18, this marked the strongest revenue growth in five quarters for the company, with the India segment's revenue growth at a seven-quarter high. The company's India segment revenue was up 18% at ₹1,455.9 crore compared to ₹1,236.5 crore in the first quarter last year.
Brainbees achieved substantial improvements in operating profitability during the quarter. According to CNBC TV18, consolidated EBITDA increased 80% to ₹59.6 crore from ₹33.1 crore, while EBITDA margin expanded by 100 basis points to 2.8% from 1.8% in the year-ago period. The company also reported adjusted EBITDA losses declining 22.3% year-on-year, highlighting efforts to improve operating efficiency while continuing growth investments. However, the India segment's EBIT declined 22% to ₹83.4 crore from ₹106.6 crore in the first quarter last year, with margins contracting to 5.7% from 8.6% in the year-ago period.
The company's business segments showed mixed performance during the quarter. As reported by CNBC TV18, the Globalbees segment's revenue declined by 1% to ₹424.2 crore from ₹426.4 crore last year, but its EBIT surged 307% to ₹16.7 crore from ₹4.1 crore last year, with margins expanding to 3.9% from 1% in the year-ago period. The international segment's revenue increased 12% to ₹232 crore from ₹207 crore last year, while its EBIT loss narrowed to ₹16.6 crore from ₹21.4 crore. The offline segment's GMV continues to grow in mid-teens, indicating sustained strength in this business vertical.
The market responded positively to Brainbees' strong quarterly performance, with shares opening 2% higher on Friday, August 14, according to CNBC TV18. However, the stock had ended the previous session flat at ₹214.45 apiece and has declined 25.3% this year so far. Looking ahead, Brainbees expressed optimism about sustained growth momentum, with the company expecting growth momentum to remain elevated in subsequent quarters, supported by ongoing initiatives across both online and offline businesses. The company stated it remains focused on achieving sustainable growth while simultaneously improving profitability, with growth across business channels and ongoing initiatives expected to support structurally higher growth going forward.
