Brainbees Solutions (FIRSTCRY) Q1 25/26 earnings summary

Executive summary

• Consolidated revenue grew 13% year-over-year to INR 18,626 million, with adjusted EBITDA up 25% and the business turning free cash flow positive for the first time at the consolidated level.

• India Multichain growth was moderated by consumer slowdown, last-mile delivery challenges, and geopolitical tensions, but positive growth signs emerged in July.

• International business delivered 30% year-over-year adjusted EBITDA growth, with sustainable expansion in UAE and KSA and significant burn reduction.

• GlobalBees segment posted 31% year-over-year revenue growth, driven by core categories and achieved organically, despite margin impact from portfolio rationalization.

• Board approved unaudited financial results for Q1 FY26 and further investment in GlobalBees Brands Private Limited using IPO proceeds.

Financial highlights

• Revenue from operations reached INR 18,626 million, up 13% year-over-year; adjusted EBITDA rose to INR 927 million, a 25% increase, with 48bps margin expansion.

• Gross margin improved 15% year-over-year to INR 7,175 million, with 82bps expansion.

• Cash profit after tax surged 197% year-over-year to INR 526 million.

• Annual unique transacting customers grew 14% to 10.8 million; GMV up 9% year-over-year to INR 25,184 million.

• Consolidated net loss for Q1 FY26 was INR 665.04 million, compared to INR 756.86 million in Q1 FY25.

Outlook and guidance

• Early teens revenue growth observed in July is expected to continue for the rest of FY26 in India Multichain.

• International business targets sustained revenue growth in the early teens for the next few quarters, focusing on unit economics and customer quality.

• Store expansion in India to remain steady, with 90-100 new stores planned for FY26, similar to FY25.

• No new brand acquisitions planned for GlobalBees; focus remains on organic growth and portfolio rationalization, expected to complete within FY26.

• Board approved further investment of INR 199.63 million in GlobalBees Brands Private Limited to support strategic objectives.