Firstcry-parent Brainbees Solutions sheds nearly 6% as net loss widens in Q4

Shares of Brainbees Solutions, the parent company of FirstCry, came under pressure on Tuesday, May 27, slipping nearly 6 per cent in intra-day trade after the company reported a sharp rise in net loss for the quarter ended March 2025 (Q4FY25). The disappointing quarterly results weighed heavily on investor sentiment, overshadowing positive developments in the company’s full-year performance.

Brainbees Solutions earnings snapshot

In Q4FY25, Brainbees posted a net loss of ₹111 crore, marking a significant deterioration from a loss of ₹43 crore reported in the same period last year. On a sequential basis, the situation worsened as well, with the company having posted a narrower loss of ₹15 crore in Q3FY25. 

Revenue from operations for the quarter stood at ₹1,930 crore, representing a 16 per cent year-on-year (YoY) growth compared to ₹1,667 crore in Q4FY24. However, it reflected an 11 per cent drop from the previous quarter's ₹2,172 crore, indicating a sequential slowdown in business momentum.

Adjusted EBITDA for the March quarter rose to ₹100 crore from ₹84 crore a year ago, suggesting some operational improvement. The company also highlighted a notable shift in consumer behavior. It stated that 38 per cent of the Gross Merchandise Value (GMV) from its top 20 cities in FY25 came from cross-channel customers—shoppers who transacted both online and offline. This reflects the company’s evolving omni-channel strategy and increasing offline presence, possibly setting the stage for longer-term growth.

Despite the Q4 setback, Brainbees delivered a better performance on an annual basis. The net loss for the full year narrowed to ₹265 crore from ₹322 crore in FY24. Total revenue for FY25 climbed 18 per cent to ₹7,660 crore, and adjusted EBITDA surged 43 per cent to ₹394 crore. Cash profit after tax nearly doubled to ₹209 crore, up 96 per cent YoY, highlighting enhanced cash generation capacity. These improvements indicate that the company has made strides toward financial stability even though quarterly volatility persists.

Brainbees Solutions stock performance

However, Brainbees Solutions stock reaction reflected the Street’s disappointment with the quarterly loss. Shares of Brainbees Solutions fell as much as 5.7 per cent in intra-day trading to hit a low of ₹354 on Tuesday. The stock is now trading over 52 per cent below its 52-week high of ₹734.25, which it had hit in October 2024. On the downside, it is still above its 52-week low of ₹291, touched earlier this month on May 7.

Despite the heavy selling post-earnings, Brainbees Solutions shares have managed a modest recovery in May, gaining around 5 per cent so far. This comes after four consecutive months of declines—8 per cent in April, 2.3 per cent in March, a steep 21 per cent fall in February, and a sharper 27 per cent decline in January.

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