Brainbees Solutions (FIRSTCRY) Q2 25/26 earnings summary

Executive summary

• Achieved positive PBT (adjusted for ESOP cost) in Q2 and H1 FY26, with 51% year-on-year growth in adjusted EBITDA and continued free cash flow positivity.

• All business segments contributed to improved profitability, with strong organic growth in core categories and sustainable international expansion.

• Consolidated revenue from operations for Q2 FY26 was INR 20,991 Mn, up from INR 19,049.17 Mn in the same quarter last year.

• Net loss for Q2 FY26 narrowed to INR 505 Mn from INR 629 Mn in Q2 FY25.

• Free cash flow remained positive, and cash profit after tax increased 157% year-on-year in Q2 FY26.

Financial highlights

• Adjusted EBITDA increased by 51% year-on-year in Q2 FY26 to INR 1,208 Mn; India multi-channel EBITDA up 14%, Globalbees up 23%, and preschool business up 55%.

• Revenue from operations grew 10% year-on-year in Q2 and 11% for H1 FY26, reaching INR 20,991 Mn.

• GMV for Q2 FY26 was INR 28,192 Mn, up 11% year-on-year.

• Gross margin for Q2 FY26 was 36.7%, with adjusted EBITDA margin at 5.8%.

• Cash profit after tax reached INR 71.6 crore, a 157% improvement over Q2 FY25.

Outlook and guidance

• Sequentially higher growth expected in H2 FY26 for both India multi-channel and international businesses, with continued focus on marketing, delivery, and technology enhancements.

• Management remains bullish on delivering early-teen or better revenue growth for India multi-channel, with potential upside.

• Globalbees aims to complete rationalization of lower-growth brands within the next couple of quarters.

• IPO proceeds are being strategically deployed for store expansion, technology, marketing, and overseas growth.