Brainbees Solutions Q3 Results: FirstCry Parent Narrows Net Loss by 70% to ₹14.7 Crore, Revenue Up 14.3% YoY
Brainbees Solutions, the parent company of India’s leading baby and mother care products retailer FirstCry, reported a significant improvement in its financial performance for the third quarter of the fiscal year 2024-25 (Q3FY25). The company announced its results on February 8, highlighting a remarkable 69.6% reduction in net loss to ₹14.7 crore from ₹48.4 crore in the same period last year.
The sharp decline in losses was attributed to strong revenue growth and an expanding customer base. Brainbees Solutions’ revenue from operations surged by 14.3% year-on-year (YoY) to ₹2,712.3 crore, compared to ₹1,900 crore in Q3FY24.
Best Quarter in Four Years
In an investor presentation, the company described Q3FY25 as its “best quarter in terms of profitability in the last four years.” It achieved the highest Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for both its consolidated business and India Multi-channel segment since 2021.
Key Financial Metrics
Brainbees Solutions experienced strong growth across its business units, particularly in its India operations.
| Metric | Q3FY25 | Q3FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹2,712.3 Cr | ₹1,900 Cr | +14.3% |
| Net Loss | ₹14.7 Cr | ₹48.4 Cr | -69.6% |
| India Business Revenue | ₹1,510 Cr | ₹1,312 Cr | +15% |
| International Business Revenue | ₹261 Cr | ₹230 Cr | +13.5% |
| Orders Delivered | 11.1 Mn | 9.8 Mn | +13% |
| Annual Unique Transacting Customers | 9.8 Mn | 8.4 Mn | +17% |
| Consolidated Expenses | ₹2,064 Cr | ₹1,841 Cr | +12% |
Expansion and Investment in Subsidiaries
Brainbees Solutions is also focusing on expanding its business footprint. The company is investing approximately ₹299.6 crore in Digital Age Retail Private Ltd (DARP), a wholly-owned subsidiary. This investment will be made through equity share subscriptions in multiple tranches.
This move is expected to strengthen FirstCry’s presence in the rapidly growing retail market and enhance operational efficiency across its digital and offline platforms.
Growth in Orders and Customer Base
FirstCry continues to expand its market dominance, with total orders increasing by 13% YoY to 11.1 million in Q3FY25. The company also reported a 17% surge in annual unique transacting customers, reaching 9.8 million.
Despite robust growth in business segments, Brainbees Solutions saw a rise in its consolidated expenses, which stood at ₹2,064 crore in Q3FY25, up from ₹1,841 crore in the previous quarter.
Stock Market Performance
Brainbees Solutions was listed on the stock exchanges in August 2024, debuting at ₹645 per share—a 40% premium over its issue price. However, the stock has since faced downward pressure. In the previous trading session, shares of Brainbees Solutions closed at ₹417.90, down 9.87% on the BSE.
Future Outlook
With a focus on expanding its business and improving operational efficiency, Brainbees Solutions is well-positioned for future growth. The company’s continued investment in technology, logistics, and customer engagement is expected to further drive revenue and profitability in the coming quarters.
Investors will closely watch how Brainbees Solutions manages costs while sustaining growth momentum. As the baby and mother care market expands, FirstCry remains a dominant player, leveraging its online and offline presence to capture a larger share of the market.
This quarter’s strong financial performance indicates that Brainbees Solutions is on the right track toward profitability, making it a key company to watch in the Indian retail sector.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.