FirstCry reported a strong 51% increase in Adjusted EBITDA for Q2 FY26, driven by improvements across all business segments. Revenue growth remains steady, with the India Multi-Channel business showing sequential improvement. The company is PAT and free cash flow positive for H1 FY26. International business is delivering sustainable growth with improved Adjusted EBITDA, while Globalbees shows continued organic growth and profitability.
Key Financial Highlights
FirstCry announced significant improvements in its financial performance for the quarter and half-year ended September 30, 2025:
- Adjusted EBITDA increased by 51% in Q2 FY26.
- The company is PBT positive, adjusted for ESOP cost in both Q2 and H1 FY26.
- Free cash flow remains positive for H1 FY26.
Segment Performance
India Multi-Channel
Despite some consumer demand deferral due to GST reforms, the India Multi-Channel business witnessed sequential improvement in GMV growth across both online and offline channels. Key highlights include:
- EBITDA improved by 14% year-on-year.
- Sequential improvement in year-on-year GMV growth rate.
- The business remains PAT and Free Cash Flow positive in H1 FY26.
International Business
The International business continues to deliver sustainable growth with a focus on reducing losses. Highlights include:
- Adjusted EBITDA increased by approximately 52% year-on-year for Q2 FY26.
- Losses reduced from INR 39.4 crore in Q2 FY25 to INR 18.9 crore in Q2 FY26.
- Revenue grew 13% to INR 236 crores, and gross margin expanded by 300 basis points.
Globalbees
Globalbees delivered another strong quarter of organic growth with core categories driving the momentum. Key highlights include:
- EBITDA continues to improve, with an increase of 23% year-on-year in Q2 FY26.
- Revenue grew 21% year-on-year with an adjusted EBITDA margin of 1.6% in H1 FY26.
Strategic Initiatives
FirstCry is undertaking several initiatives to drive growth, including:
- Expanding faster delivery network from 4 to 13 cities.
- Realigning the product portfolio in the offline channel to focus on depth.
- Leveraging new generation GST reforms with approximately one-third of the portfolio transitioning to 5% GST.
Future Outlook
The company anticipates sequential growth in the India Multi-Channel business, with Q3 and Q4 expected to be higher than H1. Focus remains on cost efficiency, customer experience, technology, and personalization to maintain unit economics and drive higher growth. The International business will maintain focus on sustainable growth and continue reducing losses.
Source: BSE
