Brainbees Solutions reported a PAT positive consolidated result for Q3 FY26 (adjusted for ESOP cost). The nine-month adjusted EBITDA rose 25% YoY, with the company remaining cash flow positive. Key focus areas included the sequential improvement in India multichannel growth, significant loss reduction in International business (36% YoY in nine months), and robust profitability in Globalbees (4.9% Adjusted EBITDA margin).
Financial Highlights: Q3 and Nine Months FY26
Management announced that the company achieved a PAT positive status on a consolidated level for Q3 FY26, factoring in ESOP costs. For the nine months ending December 31, 2025, the adjusted EBITDA increased by 25% year-on-year, and the company maintained a cash flow positive position.
On a consolidated basis for the nine-month period, AUTC grew by 10%, revenue from operations grew by 11%, and consolidated adjusted EBITDA grew by 25% YoY. For Q3, Cash Profit After Tax (CPAT) grew 23% YoY.
India Multichannel Performance
The India multichannel business showed sequential improvement in YoY growth rates, reaching 8.9% in Q3, up from 7.5% in Q1 and 7.9% in Q2. Management noted that growth would have been closer to 11% in Q3 had it not been for supply chain volatility. The segment remained PAT and free cash flow positive for the nine months. Adjusted EBITDA for India multichannel stood at 10% for Q3, and 9.3% for the nine months, with CPAT growing 72% on an equivalent 9-month basis.
Management remains structurally confident that initiatives will drive mid to late teens growth for this segment in FY27.
International Business Update
The International business remained focused on sustainable growth despite elevated promotional activity by horizontal e-commerce players. The strategy centered on retaining quality customers and reducing losses. Adjusted EBITDA losses for Q3 FY26 were reduced by 25% YoY, and by 36% YoY for the nine-month period.
Globalbees Segment Growth
Globalbees delivered strong organic and profitable growth. Core categories achieved 30% YoY growth in the nine months FY26, resulting in an adjusted EBITDA of close to ₹70 crores post corporate expenses. Revenue for the nine months reached ₹1,417.4 crores (30% YoY growth). The Adjusted EBITDA margin was 4.9% (₹69.8 crores).
Strategic Initiatives: Logistics & Qwik
Management detailed three major initiatives designed to drive structural growth:
- RocketBees: This in-house, asset-light logistics initiative, now operational in 22 cities, has shown a 20% improvement in delivery TATs. The goal is to handle 45% to 50% of total shipments by mid-2026.
- FirstCry Qwik: A new pilot launched in Pune, Bangalore, and Hyderabad promising three-hour delivery across the full product range, leveraging existing COCO stores and future dark stores to cover close to 1,200 stores.
- Product Portfolio Realigning: Moving to a depth strategy in certain areas in H2 FY26 to gain COGS benefits via MRP reduction.
These initiatives are expected to translate into a superior growth curve in FY27 for the India multichannel business.
Q&A Insights
Regarding margin outlook for India business, management attributed the recent drop in basis point expansion (to 50-60) to heightened competition in the diapering category, which management views as an irrational, temporary event. Structural gross margin improvement across the 85% non-diapering portfolio is expected to continue.
In response to a query about competition from 10-15 minute delivery Q-commerce players, Supam Maheshwari emphasized that FirstCry targets a different customer need, focusing on a higher Average Unit Price Per Transaction (AUPT) and a full assortment (fashion, toys, gear, consumables), not just a single item delivery.
Regarding customer lifetime value extension beyond early childhood, management highlighted engagement through the parenting platform, catering to products from minus nine months up to 12 years of age, with hyper-personalized experiences based on the child’s age.
Source: BSE
