Brainbees Solutions (FIRSTCRY) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue grew 13% year-over-year in Q1 FY27, marking the strongest growth in the last five quarters.

• Loss after tax reduced by 34% year-over-year, with net loss narrowing to ₹439.52 million.

• India multichannel business achieved 18% revenue growth, the highest in seven quarters, and remained PAT positive.

• International business revenue grew 12% year-over-year, with adjusted EBITDA losses reduced by 22%.

• GlobalBees segment showed stable revenue and a 308% year-over-year improvement in adjusted EBITDA.

• Preschool/Others segment revenue increased by 47% and adjusted EBITDA margin rose to 26% from 23% year-over-year.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, with unqualified review reports.

Financial highlights

• Revenue from operations reached ₹21,062.29 million (INR 21,062 Mn), up 13% year-over-year.

• Consolidated GMV grew 12% to ₹28,072 million.

• Adjusted EBITDA margin was 4.2% (₹893 million), compared to 5.0% previously.

• Gross margin declined to 36.5% from 38.5% year-over-year.

• EBITDA for the consolidated group was ₹1,065.68 million, up from ₹815.31 million year-over-year.

• Diluted EPS (consolidated) was -₹0.64, compared to -₹0.96 in the same quarter last year.

Outlook and guidance

• Management expects elevated growth rates in subsequent quarters for India multichannel, driven by ongoing initiatives in online and offline channels.

• Margin recovery is anticipated to accelerate, with full normalization expected by Q3 FY 2027 as competitive intensity eases and input costs are passed on.

• International business is on a path to EBITDA neutrality, with continued focus on home brand mix and high-quality customer acquisition.

• Preschool segment targets organic growth to over 1,000 schools in the next few years.

• IPO proceeds are being deployed as per plan, with significant investments in new stores, warehouses, technology, and marketing.