FirstCry Q2 Net Loss Narrows 75% YoY To ₹12.6 Cr, Revenue Up 14%

Brainbees Solutions, the parent entity of baby and kids’ products retailer FirstCry, managed to narrow its net loss by 75.1% to ₹12.6 Cr in the second quarter (Q2) of fiscal year 2026-27 (FY27) as against ₹50.5 Cr in the year-ago quarter. On a sequential basis, net loss narrowed 71.4% from ₹43.9 Cr in Q1 FY27.

The listed company inched closer to profitability as operating revenue rose 14.1% to ₹2,395.8 Cr during the quarter under review from ₹2,099.1 Cr in Q2 FY26. On a quarter-on-quarter (QoQ) basis, FirstCry’s top line grew 13.7% from ₹2,106.2 Cr in Q1 FY27.

Including other income of ₹41.8 Cr, the listed company’s total income stood at ₹2,437.6 Cr in the quarter under review.

Meanwhile, total expenses rose 13.1% to ₹2,303.2 Cr in Q2 FY27 as against ₹2,036.9 Cr in the year-ago period. 

On the operational front, adjusted EBITDA declined 2.3% to ₹117.5 Cr in the quarter under review compared to ₹120.8 Cr in Q2 FY26. Adjusted EBITDA margin also rationalised to 4.9% from 5.8% in the year-ago quarter.

“Our priorities remain clear – higher sustained growth, continue improving the customer experience, increase purchase frequency and strengthen profitability,” said FirstCry cofounder and CEO Supam Maheshwari in a statement. 

He added that the company’s consolidated business had seen its strongest revenue growth in the last six quarters while the India business had seen its best revenue growth in the last eight quarters. 

Giving a geographical breakdown of its top line, FirstCry said that the revenue of its India business rose 18.6% YoY to ₹1,637.9 Cr, while its international business grew 5.8% YoY to ₹249.3 Cr. 

However, its India business’ adjusted EBITDA dipped 10.5% to ₹112.2 Cr from ₹125.4 Cr in the year-ago quarter as raw material cost inflation, driven by rising crude oil prices, impacted its manufacturing margins. 

On the other hand, the international business’ adjusted EBITDA loss narrowed 15.6% YoY to ₹15.9 Cr, as the company attributed margin improvement to increased operating efficiency despite softer revenue growth. It also noted that the Middle East business grew revenue 6% YoY amid geopolitical volatility, hinting at higher growth in a more stable environment. 

Meanwhile, its house of brands vertical, GlobalBees, saw a 7.7% jump in operating revenue to ₹530.6 Cr from ₹492.8 Cr in Q2 FY26. Its adjusted EBITDA, too, improved to ₹19.2 Cr in Q2 FY27 from ₹10.4 Cr in the year-ago period as margins doubled. 

“Our Q2 growth would have been stronger had the annual sales by 3P (third-party) platforms not advanced to Q3 and had festivals like Dussehra not fallen three weeks later this year, shifting some festive sales from Sep 26 to Oct 26,” noted the management. 

The company’s ‘other’ business segment drove an additional ₹13.3 Cr in revenue and ₹5.3 Cr in adjusted EBITDA. 

In terms of operational metrics, the platform’s gross merchandise value (GMV) grew 9.2% YoY to ₹30,77.5 Cr in the quarter under review. 

Going ahead, FirstCry said its priorities will be to expand the service coverage and improve delivery experience of its logistics service RocketBees. It also plans to further scale its quick commerce service FirstCry Qwik, undertake assortment changes and resume store expansion. 

Shares of FirstCry ended today’s trading session 1.84% lower at ₹160.40.

The post FirstCry Q2 Net Loss Narrows 75% YoY To ₹12.6 Cr, Revenue Up 14% appeared first on Inc42 Media.