Brainbees Solutions Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Brainbees Solutions reported a PAT-positive Q3 FY26 on a consolidated basis (adjusted for ESOP costs) and a 25% YoY increase in 9M FY26 adjusted EBITDA. The company faced challenges from muted consumer sentiment and supply chain volatilities, which impacted Q3 growth. Strategic initiatives like RocketBees and FirstCry Qwik are being scaled to enhance customer experience and drive future growth, with management confident of achieving mid-to-late teens growth for India multichannel in FY27.

Highlights

  • Consolidated PAT positive for Q3 FY26 (adjusted for ESOP cost).

  • 9M FY26 adjusted EBITDA increased by 25% YoY.

  • Globalbees core categories revenue grew 30% YoY in 9M FY26.

  • International business EBITDA losses reduced by 25% in Q3 FY26 and 36% in 9M FY26.

  • RocketBees initiative improved delivery TATs by 20% and expanded to 22 cities.

Concerns

  • Muted consumer sentiments in Q3 FY26.

  • Supply chain volatilities impacted Q3 growth by 200 bps.

  • Heightened competitive intensity in the diapering category led to gross margin dip in India multichannel.

  • Flipkart's revenue recognition policy change impacted Globalbees' gross margins.

Key financials

  1. Consolidated Revenue ₹2,423 Cr +12%YoY
  2. Consolidated 9M Revenue Growth 11%
  3. Consolidated 9M Adjusted EBITDA Growth 25%
  4. Consolidated 9M Adjusted EBITDA Margin 5.8%

What they filed

Q1 FY27: revenue up 14.7%, net profit up 633.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue596 711 616 591 711 +19%750 +5%680 +10%678 +15%
EBITDA16 49 20 3 41 +156%28 −43%27 +35%25 +733%
Net profit7 38 15 3 28 +300%46 +21%32 +113%22 +633%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • India Multichannel
    8.9% Q3 Revenue Growth9.3% 9M Adjusted EBITDA₹395 Cr 9M Adjusted EBITDA
  • International Business
    25% Q3 EBITDA Loss Reduction36% 9M EBITDA Loss Reduction150 bps Q3 Gross Margin Expansion180 bps 9M Gross Margin Expansion
  • Globalbees
    ₹515 Cr Q3 Revenue₹1,417.4 Cr 9M Core Categories Revenue₹69.8 Cr 9M Core Categories Adjusted EBITDA4.9% 9M Core Categories Adjusted EBITDA Margin1.5% Q3 Adjusted EBITDA Growth54% 9M Adjusted EBITDA Growth
  • School Business
    31% Q3 EBITDA Margin27% 9M EBITDA Margin

Guidance & targets

Logistics

  • Percentage of total volumes covered by RocketBees Logistics · middle of this year (calendar year 2026) · High confidence 45-50%
    we should be able to cross close to around 45 to 50% of our total volumes by the middle of this year.

    — Mr. Supam Maheshwari

Revenue Growth

  • India multichannel growth rate Revenue Growth · FY27 · High confidence mid to late teens
    structurally delivering superior growth in FY27, once these policy initiatives are fully rolled out.

    — Mr. Supam Maheshwari

Overall Performance

  • Overall performance compared to prior year Overall Performance · FY27 · High confidence far superior than FY26
    FY27 will be far superior than FY26.

    — Mr. Supam Maheshwari

What to watch in Q4 FY26

RocketBees Volume Coverage

By middle of calendar year 2026
Current Expanded to 22 cities
Target 45-50% of total volumes

Why it matters

Indicates the success and impact of FirstCry's in-house logistics initiative on customer experience and growth.

we should be able to cross close to around 45 to 50% of our total volumes by the middle of this year.

Risks & concerns

  • Muted consumer sentiment

    medium

    Muted consumer sentiments were observed in Q3 FY26, impacting overall demand.

    Management acknowledged

  • Supply chain volatility

    medium

    Supply chain volatilities impacted Q3 FY26 growth by 200 bps, but new initiatives like RocketBees are being scaled to mitigate this.

    Management acknowledged

  • Heightened competitive intensity in diapering category

    medium

    Increased competition in the diapering category led to pressure on growth and gross margins in India multichannel, described as 'irrational events' by large players.

    Management acknowledged

  • Elevated promotional activities in International business

    medium

    Horizontal e-commerce players engaged in elevated promotional activities in the International business, but FirstCry is focused on sustainable growth and loss reduction.

    Management acknowledged

  • Globalbees brand rationalization

    low

    Globalbees is rationalizing certain brands that showed lower revenue growth and incurred losses, with completion expected by Q1 FY27.

    Management proactively addressing

  • Flipkart revenue recognition policy change impact on Globalbees

    low

    A change in Flipkart's revenue recognition policy impacted Globalbees' gross margins and revenue, but the impact has stabilized and future growth is expected.

    Management acknowledged

Q&A highlights

6 direct
Decline in brand partners Direct
That point absolutely needs to be ignored because those brands don't even contribute, less than 0.5% of our revenue. So you can continue to ignore that. That's, we are rationalizing at our end to be able to manage our own curation in a much smarter way.

Clarifies that the reduction in brand partners is strategic and not impacting core revenue, addressing a potential red flag.

Asked by Mr. Sachin Dixit

Necessity of RocketBees logistics initiative Direct
So we had to take things in our own control, in terms of being able to provide that kind of a service, which customers will love... to build our supply chain, which you can tailor to your requirements rather than being dependent on the third party.

Explains the strategic rationale behind RocketBees, emphasizing customer experience, control, and future-proofing against third-party logistics inconsistencies.

Asked by Mr. Sachin Dixit

India business margin outlook Direct
this correction that has happened is largely because of a certain heightened competition that we saw in one of our categories, which is diapering... our structural improvement in gross margin across our 85% of the portfolio will continue to happen quarter on quarter, year on year basis.

Addresses margin pressure, attributing it to temporary competitive intensity in one category, while maintaining confidence in structural margin improvement for the broader portfolio.

Asked by Mr. Sachin Dixit

New quick commerce players in baby/kids vertical Direct
Look, these are early days. There is a frenzy of quick commerce... currently their unit economics is at a CM-2 level is so terrible that it will take, in our estimate, hundreds of millions of dollars for anyone to really take certain shape and size.

Management dismisses new quick commerce entrants as having unsustainable unit economics and being difficult to scale, suggesting they are not a significant threat to FirstCry's established model.

Asked by Mr. Ajay Agarwal

International business profitability and growth bounce back Partial
we are very, very focused on reducing our losses... profitability path is very clear... very early days to commit anything. But definitely India, I think, and Supam, you can correct me if I'm wrong, but India, I think, took about 10 years to achieve that sort of a profitability or breakeven mark. One thing we know is we'll get there faster. It'll not take us 10 years.

Management prioritizes loss reduction over aggressive growth in the International segment, acknowledging it's a long-term play but expects faster breakeven than in India.

Asked by Mr. Ajay Agarwal

Impact of Flipkart's revenue recognition policy on Globalbees and listing plans Partial
with the readjusted model that Flipkart has, there has been an impact on the revenue level itself. And that has got depressed... impact of Flipkart we've seen over the last couple of quarters has stabilized and in the coming year, I think we should be able to simply grow from there.

Explains a specific external factor (Flipkart policy) that affected Globalbees' revenue, but indicates stabilization and future growth. Listing plans were not discussed.

Asked by Mr. Ajay Agarwal

FC Qwik's value proposition against Q-commerce Direct
we believe that while 10 minutes is what we are not solving for... It is to solve for that customer experience where they have a certainty that will come in a few hours with the full basket that they have ordered for.

Differentiates FC Qwik's strategy from ultra-fast Q-commerce, focusing on full-basket, reliable multi-hour delivery for a different customer need, leveraging FirstCry's extensive product range and home brands.

Asked by Mr. Vineet

Strategies for customer engagement and lifetime value Direct
We cater to products from minus nine months... up to 12 years of the age of the child... hyper-personalized from both gender and age... retain the lifetime value of the customer from almost up to a 15-16 years.

Highlights FirstCry's long-term customer retention strategy through broad product range, personalized experiences, and parenting platform engagement, aiming for a 15-16 year customer lifetime value.

Asked by Mr. Arvind

2 min read 5 chapters

Detailed narrative

Q3 FY26 Performance Overview

Brainbees Solutions achieved PAT positive status on a consolidated level for Q3 FY26, adjusted for ESOP costs. For the nine months, adjusted EBITDA grew by 25% year-on-year, and the company remained cash flow positive. Consolidated revenue for Q3 FY26 increased by 12% year-on-year to ₹2423 crores, up from ₹2172 crores, while 9M FY26 consolidated revenue grew by 11%.

India Multichannel Business & Logistics Initiatives

The India multichannel business showed sequential improvement, with Q3 FY26 revenue growing 8.9% year-on-year, despite muted consumer sentiment and supply chain volatilities which impacted growth by 200 bps. To address customer experience issues and supply chain inconsistencies, FirstCry launched RocketBees, an in-house asset-light logistics initiative, which has expanded to 22 cities and improved delivery TATs by 20%. The company expects RocketBees to cover 45-50% of total volumes by mid-calendar year 2026. Additionally, FirstCry Qwik, a 3-hour delivery service leveraging COCO stores, is being piloted in Pune, Bangalore, and Hyderabad.

International Business Strategy

The International business faced elevated promotional activities from horizontal e-commerce players. However, FirstCry remained focused on sustainable growth and reducing adjusted EBITDA losses, which decreased by 25% year-on-year in Q3 FY26 and 36% in 9M FY26. Gross margins expanded by 150 bps in Q3 and 180 bps over nine months. Management emphasized prioritizing loss reduction and improving home brand mix over participating in aggressive promotional events.

Globalbees Performance and Rationalization

Globalbees delivered a strong quarter with core categories achieving 30% year-on-year revenue growth in 9M FY26, reaching ₹1417.4 crores. Adjusted EBITDA for core categories stood at ₹69.8 crores (4.9%) for 9M FY26. Q3 FY26 revenue grew 22% to ₹515 crores from ₹422.3 crores. The company is rationalizing certain non-core brands that were underperforming, with completion expected by Q1 FY27, aiming to improve overall profitability.

Future Growth Outlook and Customer Engagement

Management expressed high confidence in structurally delivering superior growth for FY27, particularly aiming for mid-to-late teens growth in the India multichannel business, driven by the RocketBees, FC Qwik, and product portfolio realignment initiatives. FirstCry also highlighted its strategy to maximize customer lifetime value by engaging mothers from minus nine months to children aged 12-16 years through a hyper-personalized product range and a parenting platform, aiming for a 15-16 year customer lifetime value.

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