Brainbees Solutions, the parent company of FirstCry, has significantly improved its financial performance in Q3 FY25. The company cut its consolidated net loss by 69.6% year-on-year (YoY) to INR 14.7 crore, compared to INR 48.4 crore in Q3 FY24. This improvement was fueled by revenue growth and operational efficiency.
BrainBees Solutions Q3 FY25 – Highlights
Revenue from operations rose 14.3% YoY to INR 2,172.3 crore, up from INR 1,900.2 crore. Growth was driven by an expanding user base and increased transaction volumes.
- India multi-channel business: Up 15.05% YoY to INR 1,510.6 crore
- International business: Up 13.32% YoY to INR 261.38 crore
- Globalbees subsidiary: Contributed INR 422.25 crore, marking 12.76% YoY growth
EBITDA Improvement and Margin Expansion
EBITDA surged 30.16% to INR 138.5 crore, compared to INR 106.4 crore in Q3 FY24. The EBITDA margin rose to 6.4% from 5.6%. In a separate financial disclosure, EBITDA was reported at INR 108 crore, reflecting an 84.4% rise from INR 59 crore, with the margin improving to 4.9% from 3.1%. Discrepancies in figures may result from different calculation methodologies.
Cost Breakdown and Rising Expenses
Total expenses increased 12.09% YoY to INR 2,064.4 crore, largely due to:
- Cost of materials consumed: INR 192.83 crore (+23.52% YoY)
- Stock-in-trade purchases: INR 1,258.4 crore (+16.21% YoY)
- Employee benefits: INR 148.9 crore (+12.8% YoY)
The rise in costs was attributed to investments in logistics, promotions, and operational expansion.
Profitability and Stock Performance
Brainbees Solutions reported a profit before tax (PBT) of INR 6.88 crore, reversing a pre-tax loss of INR 42.61 crore in Q3 FY24. Net loss reduced further to INR 8 crore from INR 31.5 crore.
Following the earnings announcement, the company’s stock surged over 9%, reaching INR 458 before closing at INR 433.65 on 10 February 2025. This came despite a 0.72% decline in the Nifty 50. However, the stock remains down 36.14% over the past year. Analysts cite post-IPO underperformance and the upcoming pre-IPO lock-in expiry (13 February 2025) as key factors.
Investment in Digital Age Retail
The board approved an investment of INR 299.59 crore in Digital Age Retail (DARP), a wholly owned subsidiary. The funding will be executed in tranches through equity subscriptions, aimed at expanding the company’s omnichannel retail strategy.
User Base and Transaction Growth
Brainbees Solutions continues to expand its market reach:
- Annual unique transacting customers: Up 17% YoY to 9.8 million
- Total orders: Up 13% YoY to 11.1 million
IPO Performance and Future Plans
Listed in August 2024, the stock debuted at a 40% premium over its issue price of INR 549. However, sustained declines reflect investor concerns over profitability and sector competition.
Going forward, the company aims to strengthen its BabyHug brand, scale warehouse operations, expand Globalbees’ reach, and grow international sales. A portion of the IPO proceeds will fund aggressive sales and marketing strategies.
Conclusion
Brainbees Solutions Q3 FY25 results highlight that the company has made significant progress, cutting losses, increasing revenue, and improving margins. However, rising costs and stock volatility remain key challenges. With a growing customer base and strategic investments, the company is positioning itself for long-term growth.
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