Brainbees Solutions, the parent company of omnichannel baby and children’s products retailer FirstCry, reported a 75.1% year-on-year decline in consolidated net loss to ₹12.59 crore for the second quarter of FY27. The company had posted a net loss of ₹50.54 crore in the corresponding quarter last year. Its operating revenue increased 14.1% to ₹2,395.83 crore during the July-September period, compared with ₹2,099.08 crore in Q2 FY26.
The improvement reflects stronger revenue generation and a slower increase in total expenses. Brainbees reported consolidated total income of ₹2,437.61 crore, including other income of ₹41.79 crore. Its operating performance also improved, with earnings before finance costs, depreciation, amortisation and tax increasing to ₹134.44 crore from ₹100.40 crore a year earlier. However, the company continued to report a consolidated loss, highlighting that it has not yet achieved overall quarterly profitability.
FirstCry Q2 FY27 Financial Results
Brainbees Solutions recorded growth across its main financial indicators during the September quarter.
Revenue from operations increased by ₹296.75 crore compared with the year-ago period, while the consolidated net loss declined by nearly ₹38 crore.
Total expenses rose 13.1% to ₹2,303.18 crore from ₹2,036.93 crore in Q2 FY26. The increase was slower than the 14.1% growth in operating revenue, helping improve the company’s operating performance.
| Financial metric | Q2 FY27 | Q2 FY26 | YoY change |
|---|---|---|---|
| Revenue from operations | ₹2,395.83 crore | ₹2,099.08 crore | +14.1% |
| Total income | ₹2,437.61 crore | ₹2,137.33 crore | +14.0% |
| Total expenses | ₹2,303.18 crore | ₹2,036.93 crore | +13.1% |
| Operating profit before finance costs and depreciation | ₹134.44 crore | ₹100.40 crore | +33.9% |
| Consolidated net loss | ₹12.59 crore | ₹50.54 crore | Loss down 75.1% |
The company’s operating earnings grew faster than revenue, indicating an improvement in its operating performance. However, finance costs, depreciation, exceptional items and taxes continued to affect the final result.
FirstCry’s Loss Narrows 71% Compared With June Quarter
The company also reported an improvement in its financial performance on a sequential basis.
Operating revenue increased 13.7% from ₹2,106.23 crore in Q1 FY27 to ₹2,395.83 crore in Q2 FY27.
Consolidated net loss narrowed 71.4% from ₹43.95 crore in the June quarter to ₹12.59 crore in the September quarter.
This sequential improvement suggests that Brainbees strengthened its financial performance during the second quarter. However, the sustainability of the recovery will depend on revenue growth, expense management and profitability across its business segments.
For the first half of FY27, revenue from operations increased 13.6% to ₹4,502.06 crore from ₹3,961.65 crore in H1 FY26.
The consolidated net loss for the six-month period declined 51.7% to ₹56.54 crore from ₹117.05 crore in the corresponding period last year.
Employee Stock Option Expenses Decline 57.5%
One factor contributing to the improvement in expenses was a reduction in employee share-based payment costs.
Brainbees reported consolidated employee share-based payment expenses of ₹24.90 crore in Q2 FY27, down 57.5% from ₹58.61 crore in Q2 FY26.
Employee benefit expenses excluding share-based payments increased to approximately ₹156.38 crore from ₹144.86 crore.
Other expenses also rose to ₹568.08 crore from ₹504.51 crore in the year-ago quarter.
The reduction in employee stock-based compensation helped moderate the overall increase in expenses. However, the company continues to face significant operating costs associated with inventory procurement, employee compensation, logistics, technology and maintaining its retail and digital infrastructure.
India Multi-Channel Business Remains the Largest Revenue Contributor
Brainbees operates through multiple business segments, including India multi-channel, international operations and GlobalBees.
The India multi-channel business includes the manufacturing, purchasing, selling, advertising and promotion of baby and children’s products in India. It remained the company’s largest revenue contributor during the September quarter.
| Business segment | Q2 FY27 revenue | Q2 FY26 revenue |
|---|---|---|
| India multi-channel | ₹1,637.93 crore | ₹1,381.13 crore |
| International | ₹249.32 crore | ₹235.69 crore |
| GlobalBees | ₹530.65 crore | ₹492.85 crore |
| Others | ₹13.25 crore | ₹11.11 crore |
India multi-channel revenue increased approximately 18.6% year-on-year, reflecting growth in the company’s core domestic business.
International revenue grew around 5.8%, while GlobalBees revenue increased approximately 7.7%.
The figures show that the domestic business continues to account for the largest share of Brainbees’ consolidated revenue, while international operations and GlobalBees provide additional sources of growth.
GlobalBees Improves Segment Performance
GlobalBees, Brainbees’ direct-to-consumer brand aggregation and investment business, also reported an improvement in its segment performance.
The segment generated revenue of ₹530.65 crore in Q2 FY27, compared with ₹492.85 crore in the corresponding period last year.
Its segment loss narrowed to ₹19.40 crore from ₹107.09 crore a year earlier.
For the first half of FY27, GlobalBees reported revenue of ₹954.92 crore, compared with ₹919.33 crore in H1 FY26. Its segment loss declined to ₹56.58 crore from ₹315.25 crore.
The improvement indicates that the business has reduced its losses while maintaining revenue growth.
Brainbees has been working to streamline its portfolio of acquired consumer brands and improve their operating performance. The company’s financial disclosures also indicate that GlobalBees has been reviewing its investments and ownership interests in certain businesses.
International Business Continues to Report Losses
While the India multi-channel and GlobalBees segments recorded positive segment results before certain group-level adjustments, international operations continued to report losses.
The international segment generated revenue of ₹249.32 crore in Q2 FY27, compared with ₹235.69 crore in Q2 FY26.
Its segment loss narrowed to ₹21.99 crore from ₹24.39 crore.
The international business primarily includes operations in the United Arab Emirates and Saudi Arabia.
The segment’s improving revenue and slightly lower losses indicate progress, but it remains an area where the company needs to improve operating efficiency and scale.
FirstCry’s Omnichannel Strategy Supports Expansion
FirstCry operates through an omnichannel retail model combining online shopping with physical stores.
The company sells products across categories such as baby care, maternity products, toys, clothing, footwear, feeding accessories and other children’s essentials.
Its business model combines its online platform with physical retail locations, allowing customers to purchase products through different channels.
Brainbees also operates through its manufacturing and consumer-brand ecosystem, while GlobalBees provides exposure to a broader portfolio of direct-to-consumer brands.
The omnichannel strategy is important in the baby and children’s products market because customers often seek product variety, convenience and access to physical stores for certain purchases.
However, maintaining this model requires investment in inventory, warehousing, technology, logistics and retail operations.
The company’s ability to grow revenue while controlling these costs will remain important for improving profitability.
The Bigger Picture
FirstCry’s Q2 FY27 results show that Brainbees is making progress towards reducing its losses while expanding revenue.
The 75.1% decline in consolidated net loss is significant, particularly alongside 14.1% revenue growth and a 33.9% increase in operating earnings before finance costs and depreciation.
The improvement in GlobalBees’ segment performance also provides an indication that the company is working to reduce losses across parts of its wider consumer-brand portfolio.
However, FirstCry has not yet achieved consolidated profitability. Its international operations continue to report losses, while the business remains exposed to substantial inventory, logistics, technology and employee-related expenses.
The next stage of growth will depend on whether the company can maintain revenue momentum while improving margins and generating stronger cash flows.
Looking Ahead
Brainbees enters the second half of FY27 with improved financial performance compared with both the year-ago quarter and the preceding June quarter. Its domestic multi-channel business remains the largest revenue contributor, while GlobalBees has reported a substantial reduction in segment losses. Investors will watch whether these improvements continue as the company expands its retail network and consumer-brand portfolio.
The key challenge for FirstCry will be converting revenue growth into consistent consolidated profitability. Lower employee stock-based compensation and slower expense growth have supported the latest results, but sustained improvement will require stronger operating efficiency across its domestic, international and GlobalBees businesses. The coming quarters will show whether the company can move closer to reporting a full quarter of consolidated profit.
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