Brainbees Solut.

The India Multi-channel segment, FirstCry's core business, grew revenue by 19% YoY in Q2 FY25. Adjusted EBITDA for this segment reached ₹110 crores, a 38% increase, with margins improving to 8.6% from 7.4% in the previous year. Management emphasized that customers frequently overlap between online and offline channels, with offline stores now numbering 1,124 across 500+ cities. They added approximately 40 stores in Q2 and plan to continue aggressive expansion, citing that competitors in other retail categories often have 1,600 to 2,000 stores.

GlobalBees reported a standout 55% YoY revenue growth in Q2, though management noted this was aided by the advancement of seasonal sales from October to September. Despite the seasonal boost, the segment showed underlying strength with Adjusted EBITDA margins improving to 2% from 1.2% YoY. Management expects the segment to align with the broader D2C industry growth rate of 30%+ CAGR over the next few years. They also highlighted that no single brand in the GlobalBees portfolio accounts for more than 15% of total sales, indicating a well-diversified house-of-brands model.

The International business, primarily focused on UAE and KSA, grew revenue by 25% YoY to ₹208 crores in Q2. While still loss-making, Adjusted EBITDA losses narrowed significantly from 22.8% to 18.9% YoY. Management highlighted that the Average Order Value (AOV) in the international business is roughly 3.9 times that of the India business. To further penetrate these markets, FirstCry has hired a head for its international offline foray and expects to open its first couple of physical stores in the Middle East next year.

Addressing investor concerns regarding quick commerce, CEO Supam Maheshwari highlighted FirstCry's existing logistics infrastructure as a major competitive advantage. The company already offers same-day delivery in 40+ cities and next-day delivery in over 1,000 cities. Management argued that mother and baby purchases are typically 'planned' rather than 'impulse,' and the minimal category overlap with quick commerce (limited mostly to diapers) makes the threat less material for their fashion-led business model.

The 'Others' segment, which includes the preschool education business, demonstrated significant growth of 44% YoY in Q2. This segment operates on an asset-light franchise model and currently includes 300+ schools. Management noted that this is a high-profit business, with H1 FY25 EBITDA margins reaching 23%, up from 16% in H1 FY24. They see massive headroom for growth as the Indian preschool market remains 80% unbranded and highly unorganized.