FirstCry shares fell as much as 7% intraday following the release of Q4FY26 results that showed mixed operating performance. According to latest reports, the stock was trading at ₹221.05, down 6.83%, at 11:38 IST after initially hitting lower levels. The company reported a 57% YoY decline in consolidated net loss to ₹48.2 crore in Q4FY26 from ₹111.5 crore in the same period last year, though losses widened 26% sequentially from ₹38.4 crore in Q3FY26. Despite the quarterly loss, operating revenue rose 12% to ₹2,162.7 crore during the quarter, with total income including other income of ₹40.8 crore standing at ₹2,203.5 crore.
The India multi-channel (IMC) business reported gross merchandise value (GMV) growth of 11.8% year-on-year in Q4FY26, supported by a 9% rise in transacting users and 10% increase in order volumes. As reported by Business Standard, revenue from this segment grew 11.4% Y-o-Y to approximately ₹1,490 crore. However, JM Financial analysts noted that growth remains below the company's historical 'steady-state' trajectory of high-teen expansion, linked to higher competition in the diapering category which contributes around 15% to IMC GMV. The margin pressure was attributed to increased discounting in diapers and elevated cost of goods sold driven by rupee depreciation and higher crude-linked input costs. According to the latest reports, adjusted EBITDA margin for the IMC business declined around 200 basis points YoY to 7.3% due to competitive intensity.
FirstCry's India multi-channel gross margin declined 280 basis points year-on-year due to increased discounting in diapers and elevated cost of goods sold. According to Business Standard, adjusted Ebitda margin for the segment declined 210 basis points Y-o-Y to 7.3%. At the consolidated level, gross margin fell 210 basis points Y-o-Y to 35.4%, though operating leverage and marketing efficiencies helped absorb some impact, resulting in adjusted Ebitda growth of 18% Y-o-Y to ₹118.7 crore and consolidated adjusted Ebitda margin improvement of 30 basis points Y-o-Y to 5.5%. For the full FY26, FirstCry's net loss narrowed 23% to ₹203.7 crore while operating revenue grew 12% to ₹8,547.9 crore.
The international segment faced challenging conditions with GMV growth of just 1.8% Y-o-Y while revenue rose 9.5% Y-o-Y to ₹230 crore. As reported by Business Standard, the company attributed the slowdown to continued promotional intensity by large ecommerce platforms, softer consumer sentiment, and import-related disruptions. However, according to latest reports, EBITDA losses narrowed meaningfully during the quarter. GlobalBees, the brand aggregator business, delivered revenue growth of 15% Y-o-Y to ₹460 crore, with adjusted Ebitda margin at 5.8% during the quarter. The international business, which includes UAE and Saudi Arabia operations, posted 10% revenue growth to ₹947.4 crore during FY26. GlobalBees delivered 20% YoY growth in revenue at ₹1,894.3 crore during the full year, with the margin improvement supported by core categories as rationalisation of non-core brands neared completion.
JM Financial highlighted new initiatives as a bright spot for Brainbees, including the expansion of RocketBees logistics platform from 22 cities in Q3FY26 to 62 cities in Q4, handling more than 40% of online shipment volumes. According to Business Standard, FirstCry Qwik sub-three-hour delivery service is gaining traction and currently operates across select pin codes in five cities, with management expecting the service to account for over 10% of total online shipments during FY27. The company's offline GMV grew in the mid-teens during Q4FY26, with management expecting both online and offline growth rates to improve structurally in the ongoing fiscal year. JM Financial noted that operating leverage and marketing efficiencies helped offset part of the impact, resulting in a 30 bps YoY expansion in adjusted EBITDA margin to 5.5%. The brokerage expects a meaningful pick-up in IMC GMV growth in FY27 while maintaining its 'ADD' rating and target price of ₹265 on the stock. From a technical standpoint, Ravi Singh from Master Capital Services stated that the stock appeared weak on daily charts, with immediate support at ₹200 and resistance at ₹230.
