Brainbees Solutions, the parent company of FirstCry, recently reported its Q4 FY25 results, drawing mixed reactions from investors and analysts. The company, known primarily for its maternity, baby, and kids products sold mainly through the FirstCry platform, showed some signs of operational improvement but also recorded a widened net loss for the quarter.
Let’s unpack the numbers and see what’s happening behind the scenes.
Steady revenue growth but widening quarterly losses
In the quarter ending March 2025 (Q4 FY25), Brainbees Solutions reported a net loss of ₹111 crore, which is a sharp increase from the ₹43 crore loss in Q4 FY24. The loss also worsened sequentially from the ₹15 crore loss recorded in Q3 FY25. This jump in losses caused the stock to fall by nearly 6% on the day of the results announcement.
However, the company’s revenue told a somewhat different story. Revenue from operations rose 16% year-on-year (YoY) to ₹1,930 crore in Q4 FY25, up from ₹1,667 crore a year ago. On the other hand, sequentially, the revenue was down 11% from ₹2,172 crore in Q3 FY25, indicating a slowdown in business momentum towards the end of the year.
Adjusted EBITDA, a measure of operational profitability, improved to ₹100 crore in Q4 FY25 compared to ₹84 crore a year ago. The adjusted EBITDA margin also inched up slightly to 5.2% from 5% in Q4 FY24, suggesting that despite rising losses, the company is getting a bit better at managing its core operations.
Full-year numbers paint a more optimistic picture
Looking at the full financial year FY25, Brainbees Solutions managed to reduce its net loss to ₹265 crore from ₹322 crore in FY24. Revenue for the year increased 18% to ₹7,660 crore, showing solid top-line growth. Adjusted EBITDA jumped 43% to ₹394 crore, and cash profit after tax nearly doubled to ₹209 crore, indicating improved cash generation.
| Metric | FY24 | FY25 | Change |
| Revenue (₹ crore) | 6,490 | 7,660 | +18% |
| Adjusted EBITDA (₹ crore) | 276 | 394 | +43% |
| Net loss (₹ crore) | 322 | 265 | -18% (loss narrowed) |
| Cash profit after tax (₹ cr) | 106 | 209 | +96% |
The company also reported growth in other key metrics during Q4 FY25:
- Gross merchandise value (GMV) rose 14% YoY to ₹2,615 crore.
- Annual unique transacting customers increased 17% YoY to 10.6 million.
- India’s multi-channel revenue rose 12% YoY to ₹1,337 crore.
- International revenue increased 11% YoY to ₹205 crore.
- Average order values remained steady, with slight growth in both domestic and international segments.
Evolving omnichannel strategy showing signs of promise
One interesting insight from the company is the growing importance of its omnichannel approach. Brainbees Solutions revealed that 38% of the GMV from its top 20 cities in FY25 came from cross-channel customers, those who shop both online and offline.
This shift suggests the company is expanding its offline footprint alongside its online platform, possibly aiming for a more balanced and resilient business model. The offline gross merchandise value in Q4 FY25 stood at ₹467 crore, up slightly from ₹443 crore the year before. While the company noted a temporary slowdown in offline sales growth in Q4, management remains optimistic about the multi-channel approach.
Also read: ITC Q4 FY25 result highlights
Share price performance and market sentiment
Following the Q4 results announcement on May 27, Brainbees Solutions shares dropped sharply, falling about 5.7% intraday to ₹354. This put the stock more than 52% below its 52-week high of ₹734.25 reached in October 2024. However, the stock price remains above its 52-week low of ₹291 touched earlier in May.
Despite the recent quarterly disappointment, the stock has shown some recovery in May, gaining around 5%. Still, it faces pressure after four months of consecutive declines:
| Month | Price movement |
| January | -27% |
| February | -21% |
| March | -2.3% |
| April | -8% |
| May* | +5% (recovery) |
*Up to May 27, 2025
It’s clear that the market is cautious about the company’s quarterly volatility, but the full-year performance improvements offer a silver lining.
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Investments and future outlook
In March 2025, Brainbees Solutions’ board approved a significant investment of ₹146 crore in Globalbees Brands Private Limited through convertible preference shares. They also approved incremental investments to expand FirstCry’s subsidiaries in the Middle East, signalling confidence in growth outside India.
The company, involved in wholesale buying and selling of baby and kids products, also provides related education and training services. With expanding international operations and an evolving omnichannel strategy, Brainbees Solutions seems focused on positioning itself for long-term growth.
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Bottomline
Brainbees Solutions’ Q4 FY25 results show a company grappling with quarterly losses but making progress in revenue growth, operational efficiency, and cash generation over the year. The widening quarterly net loss is a concern, but it’s partially offset by improved EBITDA and an increasing customer base.
Investors should watch for continued execution of the omnichannel strategy, the impact of international expansion, and efforts to control costs. The stock’s 52% decline from its high reflects investor caution, but the business’s fundamental improvements could offer potential for recovery.
