Brainbees Solutions, parent of omnichannel retailer FirstCry, reported a 12% year‑on‑year rise in Q3 FY26 revenue to Rs 2,424 crore, driven by steady demand across online and offline channels. However, rising costs and continued investment in expansion widened losses, underscoring the challenge of converting scale into near‑term profitability.
Revenue mix and sources of growth
Sales of baby, kids and maternity products through FirstCry’s digital platform and its network of physical stores remained the primary revenue source, with expansion into tier‑2 and tier‑3 cities supporting traction during the festive and holiday season.
Group diversification also contributed to topline growth. Brainbees reported Rs 56 crore in interest income and recorded Rs 515 crore from GlobalBees, the company’s brand‑aggregator arm, reflecting gains from brand acquisitions and scaling of digital‑first labels. Total income for the quarter was about Rs 2,480 crore.
Cost pressures squeeze margins
Despite healthy revenue, expenses rose faster, compressing margins. Cost of materials increased nearly 15% year‑on‑year to Rs 1,580 crore, a result of higher sourcing costs and inventory build‑up to meet demand.
Employee benefit expenses climbed to Rs 197 crore, which included Rs 57 crore of ESOP‑related costs as the company scaled operations. Marketing, technology, logistics, rent and other overheads further pushed total expenditure to Rs 2,469 crore for the quarter.
The elevated cost structure reflects FirstCry’s aggressive expansion and market‑consolidation strategy but has weighed on short‑term profitability.
Widening net loss and near‑term outlook
Brainbees posted a net loss of Rs 38 crore in Q3 FY26, roughly 2.5 times the Rs 15 crore loss in Q3 FY25. For the nine months to December 2025, cumulative losses stood at about Rs 154 crore, broadly in line with recent trends.
The results highlight the trade‑off facing many consumer retail platforms in India: sustaining top‑line momentum while improving operational efficiency. Management will need to prioritise cost rationalisation and margin improvement without derailing growth.
Investors will be watching subsequent quarters to see whether Brainbees can stabilise earnings as FirstCry converts its omnichannel scale and brand‑aggregation strategy into sustainable profitability.
