Brainbees Solutions (FIRSTCRY) Q3 24/25 earnings summary

Executive summary

• Achieved best quarterly profitability in four years, with Q3 FY25 showing record Adjusted EBITDA for both consolidated and India multi-channel businesses, and consolidated profit before tax of INR 69 million.

• 9M FY25 consolidated Adjusted EBITDA up 54% year-over-year, reflecting strong operational leverage and cost discipline.

• Annual unique transacting customers grew 17% year-over-year, reaching 10.3 million.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

• Approved investment of Rs. 2,995.99 million in Digital Age Retail Private Limited (DARP) for store expansion, lease payments, and loan repayment.

Financial highlights

• Q3 FY25 revenue from operations at INR 21,723.09 million, up 14% year-over-year; 9M FY25 revenue at INR 57,293 million, up 19%.

• Q3 FY25 consolidated Adjusted EBITDA at INR 1,385 million (+30% YoY); 9M FY25 at INR 2,930 million (+54% YoY).

• Q3 FY25 cash profit after tax at INR 941 million (+25% YoY); 9M FY25 at INR 1,397 million (+47% YoY).

• Gross margin improved to 37% in Q3 FY25 (vs 34.5% Q3 FY24); 37.3% in 9M FY25 (vs 35.4% 9M FY24).

• Q3 FY25 profit before tax turned positive at INR 68.83 million, compared to a loss of INR 426.12 million in Q3 FY24.

Outlook and guidance

• Management remains optimistic about continued top-line and bottom-line improvement, with margin expansion expected to continue, driven by home brand growth, operating leverage, and marketing efficiency.

• No specific margin or revenue guidance provided, but long-term improvement in all segments anticipated.

• Investment in DARP to be made in FY 2024-25 in multiple tranches, funded by IPO proceeds and internal accruals.