Brainbees Solutions (FIRSTCRY) Q2 24/25 earnings summary

Executive summary

• Achieved 26% year-on-year consolidated revenue growth in Q2 FY25, with revenue reaching INR 19,049 million and strong performance across all business segments.

• Adjusted EBITDA grew 66% year-on-year to INR 801 million, and cash profit after tax increased 209% to INR 279 million.

• Annual unique transacting customers increased 16.5% year-on-year to 9.9 million as of September 2024.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved by the Board on November 14, 2024.

• The company completed an IPO during the quarter, raising INR 16,017.35 million in net proceeds.

Financial highlights

• Consolidated net revenue from operations reached INR 19,049.17 million in Q2 FY25, up from INR 16,520.73 million in the previous quarter.

• Gross margin expanded by 101 basis points year-on-year to 37.3% in Q2 FY25.

• Adjusted EBITDA margin improved to 4.2% in Q2 FY25 from 3.2% in Q2 FY24.

• Profit after tax loss narrowed to INR 628.54 million in Q2 FY25 from INR 1,194 million in Q2 FY24.

• Cash profit after tax reached INR 279 million in Q2 FY25, up from INR 90 million in Q2 FY24.

Outlook and guidance

• Management expects continued robust growth across all segments, leveraging a large addressable market and multi-channel strategy.

• Gross margin expansion expected to continue, driven by category mix, home brands, and scale.

• International offline expansion planned, with first stores expected next year.

• Insurance claims related to warehouse fire losses are expected to be settled in due course, with no further material adjustments anticipated.

• Ongoing investments in technology, brand portfolio, and international expansion are expected to drive future growth.