FirstCry expects FY27 growth to outpace FY26 as delivery initiatives gain traction
Management's delivery and offline bets are paying off, but diaper margin wars remain a drag.
What management said
- Rocketbees now covers 62 cities, delivering 40%+ of online orders, ahead of mid-year target.
- FirstCry Quick expands to 5 cities, aiming for 10% of online orders by end of FY27.
- Offline channel GMV grew mid-teens in Q4 thanks to new assortment strategy, best in 7 quarters.
- International business reduced EBITDA losses by 35% to ₹90 crore, now 10% of revenue.
- Gross margin pressure from diapering competition and input costs expected to ease from Q2.
The brief
FirstCry's Q4 FY26 revenue grew 12% YoY to ₹8,547 crore, adjusted EBITDA up 24% to ₹486 crore. India multi-channel GMV crossed $1 billion, with sequential improvement in growth. Management reported three initiatives: Rocketbees (62 cities, 40%+ online volumes), FirstCry Quick (5 cities, 20% of orders in those catchments), and offline channel (mid-teens growth). International business revenue grew 10%, but losses reduced 35% to ₹90 crore. Gross margin faced pressure from diapering competition and input costs, but management expects recovery from Q2. Globalbees core revenue grew 28% with 4.9% EBITDA. Guidance: management raised expectations for FY27, projecting superior growth across India multi-channel and continued loss reduction internationally. Sentiment constructive, but margin headwinds persist.
In their words
“we have crossed five cities and here we are doing select catchments in the cities and in the catchments that we are doing we are already crossing 20% of our overall online orders under our quick initiative”— Supam Maheshwari — Managing Director & CEO
“We reduced our losses from 140 crores to 90 crores, a reduction of 35%.”— Abhinav Sharma — Country Head of Middle East business operations
Summarised from the Brainbees Solutions Ltd Q4 2026 earnings-call transcript. View transcript.