Brainbees Solutions (FIRSTCRY) Q3 25/26 earnings summary

Executive summary

• Achieved PAT positive status on a consolidated level for Q3 FY 2026, adjusted for ESOP cost, and remained cash flow positive for the nine-month period.

• Revenue from operations grew 12% year-over-year in Q3 and 11% for the nine months, with adjusted EBITDA up 25% year-over-year.

• Annual unique transacting customers reached 11.3 million, up 10% year-over-year.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, following Audit Committee recommendation.

• Board changes included the resignation of a Non-Executive Director and appointment of a new Mahindra & Mahindra nominee.

Financial highlights

• Q3 revenue increased to INR 24,236.31 million from INR 21,723.09 million, a 12% year-over-year growth; nine-month revenue at INR 63,853 million.

• Adjusted EBITDA margin for consolidated business at 6.3% in Q3 and 5.8% for nine months.

• Cash profit after tax for nine months was INR 2,397 million, up 72% year-over-year.

• Net loss for the quarter was INR 384.04 million, with a net loss of INR 1,554.51 million for nine months.

• School segment EBITDA grew 40% year-over-year in Q3 and 27% over nine months, with margins at 31% and 27% respectively.

Outlook and guidance

• Management expects structurally superior growth in FY 2027 as new initiatives scale, with higher growth rates for both online and offline channels.

• Confident in delivering mid- to late-teens growth in India Multichannel, driven by logistics and product initiatives.

• International business prioritizes reducing losses before accelerating top-line growth, with break-even expected faster than the 10 years taken in India.

• Ongoing investments in store expansion, technology, and overseas growth as per IPO objectives.

• The company continues to monitor regulatory changes, especially regarding new labor codes, and will adjust accounting as needed.