Shares of Brainbees Solutions, parent company of e-commerce operator FirstCry, fell 3% despite reporting a significant narrowing of its quarterly losses. According to latest reports, the stock is now down over 50% from its issue price of ₹465, representing a substantial decline from its initial public offering levels. The stock has also declined 23% so far this year, reflecting ongoing investor concerns about the company's financial performance, even as the company showed improved profitability metrics.
The company reported a net loss of ₹30.30 crore for the quarter, which represents a 61% narrowing from the previous year's loss of ₹80.5 crore. As reported by CNBC TV18, revenue for the company increased by 12% year-on-year to ₹2,163 crore, though it declined sequentially. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter more than quadrupled to ₹70.1 crore from ₹15.9 crore in the year-ago period. EBITDA margins saw significant expansion to 3.2% from 0.8% last year.
Brainbees' India multi-channel business, which serves as the core margin driver for the company, experienced mixed results. According to reports from CNBC TV18, this segment saw revenue growth of 11.4% from last year, but Earnings Before Interest & Tax (EBIT) dropped 12.7% year-on-year to ₹109.1 crore from ₹125 crore last year. Margins for this segment also narrowed to 7.3% from 9.3% earlier, with this vertical being the primary revenue contributor to the company.
The International business segment showed improvement with revenue growth of 9.4% from last year, while its EBIT loss narrowed to ₹20.6 crore from ₹30.7 crore a year earlier. As reported by CNBC TV18, Globalbees, another business vertical, performed particularly well during the quarter as its EBIT jumped from ₹2.9 crore last year to ₹26.4 crore, with margins expanding to 5.7% from 0.7% earlier. These results indicate mixed performance across different business segments despite the overall revenue growth, with the company anticipating improved growth in FY27 with plans to expand its offline store presence.
