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    Brainbees Solut.

    FIRSTCRY
    Consumer Services·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

    5

    • 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

    4

    • 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

    Single quarter

    04 metrics
    1. 01Consolidated Revenue₹2,423 Cr+12%YoY
    2. 02Consolidated 9M Revenue Growth11%
    3. 03Consolidated 9M Adjusted EBITDA Growth25%
    4. 04Consolidated 9M Adjusted EBITDA Margin5.8%

    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 Margin147% Q3 Adjusted EBITDA Growth54% 9M Adjusted EBITDA Growth
    School Business
    31% Q3 EBITDA Margin27% 9M EBITDA Margin
    List

    Guidance & targets

    3
    CategoryTargetPriority
    Logistics
    Percentage of total volumes covered by RocketBees
    45-50%
    		High
    Revenue Growth
    India multichannel growth rate
    mid to late teens
    		High
    Overall Performance
    Overall performance compared to prior year
    far superior than FY26
    		High

    RocketBees Volume Coverage

    By middle of calendar year 2026
    CurrentExpanded to 22 cities
    Target45-50% 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.

    How to verify

    guidance_and_targets[metric='Percentage of total volumes covered by RocketBees']

    Risks & concerns

    6
    RiskSeverity

    Muted consumer sentiment

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

    medium

    Supply chain volatility

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

    medium

    Heightened competitive intensity in diapering category

    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

    medium

    Elevated promotional activities in International business

    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

    medium

    Globalbees brand rationalization

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

    low

    Flipkart revenue recognition policy change impact on Globalbees

    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

    low

    Q&A highlights

    8

    “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

    2 min read5 chapters

    Detailed Narrative

    01

    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%.

    02

    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.

    03

    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.

    04

    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.

    05

    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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