Shares of Brainbees Solutions, the parent company of FirstCry, fell 3 percent in trade on Wednesday despite the company reporting a narrower quarterly loss. According to NSE data, the stock was trading at ₹223.95, down ₹7.00 or 3.09 percent, at 11:54 am. The market reaction reflects investor concerns over the company's sequential decline in profitability, even as year-on-year losses narrowed significantly. The company maintained its PAT and Free Cash Flow positive status for the full financial year FY26.
The company reported a net loss of ₹30.30 crore for Q4 FY26, which increased sequentially from the ₹28.43 crore net loss reported in the October-December quarter of the same financial year. However, revenue from operations showed strong growth of 12 percent year-on-year, reaching ₹2,163 crore compared to the previous quarter's ₹2,424 crore. EBITDA stood at ₹119 crore versus ₹101 crore in the year-ago period, with adjusted EBITDA margins improving to 5.5 percent compared to 5.2 percent in Q4 FY25. The company also achieved a 33 percent YoY reduction in adjusted EBITDA losses in Q4 FY26 and 35 percent reduction for the full year.
For the financial year ending March 31, 2026, FirstCry reported a 23 percent year-on-year drop in net loss, while revenue grew 12 percent YoY and EBITDA rose 24 percent YoY. The company stated in its exchange filing that it witnessed sequential improvement in year-on-year growth rate for revenue, despite heightened competitive intensity during the quarter. With its initiatives in offline channels, GMV grew in the mid-teens in Q4 FY26, reaching ₹11,643 crore, up 10 percent versus FY25. The company delivered strong organic and profitable growth with core categories delivering 28 percent YoY growth in FY26 with ₹92 crore Adjusted EBITDA (post corporate expenses).
Looking ahead, FirstCry expressed optimism about its growth prospects, stating in its exchange filing that "with our current initiatives, we believe that structurally the growth rate for both online & offline channels will be much superior in FY27." The company noted that it expects to see sequential improvement in year-on-year growth rate for revenue, despite the current competitive challenges in the market. The company continues to face elevated promotional activities led by two horizontal ecommerce players that entered these markets in 2024, but remains focused on sustainable growth while reducing Adjusted EBITDA losses.
