Brainbees Solut.

Brainbees Solutions delivered a robust performance in FY26, with consolidated revenue growing 12% year-on-year to ₹8,547 crores. Adjusted EBITDA saw a significant increase of 24% year-on-year, reaching ₹486 crores. The company also achieved a 49% increase in cash profit for the full year, totaling ₹312 crores. Notably, net losses were substantially reduced by 57% in Q4 and 23% for the entire fiscal year, demonstrating a strong focus on profitability.

The India multi-channel business remained PAT and cash flow positive for FY26, with revenue growing 9% and GMV increasing 11% to cross $1 billion. Strategic initiatives like 'RocketBees' for faster delivery expanded to 62 cities, handling over 40% of online delivery volumes by Q4. The 'Qwik' initiative, offering sub-3-hour delivery, expanded to 5 cities and now covers 20% of online orders in those catchments. These initiatives are expected to drive superior growth in FY27, with Qwik deliveries projected to reach 10% of overall online business.

Despite elevated promotional pressures and geopolitical challenges, the international business successfully reduced its adjusted EBITDA losses by 35% for FY26, from ₹140 crores to ₹90 crores. Gross margins expanded by 250 bps, leading to a 22% increase, and overall margin expansion for FY26 was 240 bps. The company's focus on sustainable growth, home brand expansion, and sales mix improvement is key to further reducing losses and achieving profitability.

GlobalBees demonstrated strong organic growth, with core category revenue increasing 28% year-on-year in FY26 to ₹1,876.8 crores. Adjusted EBITDA post-corporate expenses reached ₹91.9 crores, representing 4.9% of revenue, a 2.5X increase from FY25. The company is nearing completion of its brand rationalization efforts, expected by Q1 FY27, to focus on brands that drive both growth and profitability, aiming for continuous organic growth from Q2 FY27.

The preschool segment, categorized under 'Others', showed healthy growth with an 11% increase in revenue for FY26 over FY25. Adjusted EBITDA improved by 220 bps, reaching 27% in FY26. The number of preschools more than doubled from 208 in FY24 to the end of FY26, and student enrollment nearly tripled in two years, indicating successful expansion and improved unit economics in this segment.

The company experienced gross margin pressure in India multi-channel, with a 140 bps dip due to heightened competitive intensity in the diapering category and increased manufacturing costs from rupee depreciation and crude prices. While competitive pressures are expected to normalize over 4-6 quarters, the manufacturing-related margin loss is deemed transitory^📎 and is anticipated to be fully recovered by Q2 FY27 through cost pass-throughs to customers. Overall consolidated gross margin dipped from 37.4% to 36.2%.