FirstCry, operated by Brainbees Solutions, reported strong financial growth in FY26 as the company improved its profits while continuing to expand in India and international markets. The baby and kids retailer saw steady revenue growth, better EBITDA margins, and lower losses during the year, even though it faced legal issues and business challenges.
Revenue Growth Stays Strong in FY26
FirstCry reported a 12% year-on-year rise in revenue for FY26, taking its total revenue to Rs 85,479 million. In the fourth quarter alone, the company earned Rs 2,163 crore in revenue, which was also 12% higher compared to the same quarter last year.
The company continued to benefit from strong demand for baby products, kids fashion, toys, and parenting essentials across both online and offline channels. FirstCry’s strategy of combining e-commerce with physical retail stores is helping the company reach more customers across India.
Its India multi-channel business remained one of the biggest contributors to overall growth. The company already operates more than 1,100 stores across the country and plans to expand further in the coming years.
EBITDA and Profitability Improve Sharply
One of the biggest positives for FirstCry in FY26 was the strong improvement in profitability. The company’s adjusted EBITDA grew by 24% during the year to Rs 4,860 million.
In Q4 FY26, EBITDA performance improved sharply. Reports showed EBITDA rising to more than Rs 111 crore with margins above 5%, while another estimate placed quarterly EBITDA at Rs 210 crore with margins close to 10%.
The company also reduced costs during the quarter. Employee expenses reportedly fell by 17%, which helped improve operating efficiency. FY26 EBITDA also included around Rs 40 crore in non-cash gains linked to fair valuation adjustments and lease terminations.
Most importantly, FirstCry became Profit After Tax (PAT) positive and Free Cash Flow positive for the full financial year. Its yearly net losses reduced by around 23%, while quarterly losses narrowed by nearly 57%.
The results show that the company’s focus on cost control and better operations is starting to deliver positive results.
GlobalBees Returns to Profit Growth
GlobalBees, the company’s house-of-brands business, also performed well during FY26. The business recorded strong organic growth across its main categories, which grew by 28% year-on-year. GlobalBees reported an adjusted EBITDA of Rs 92 crore after corporate expenses and returned to profitability at the EBITDA level.
During the year, FirstCry also increased its investments in several brands. It raised its stake in Candes Technology to 92% and expanded its holdings in Frootle India and Wellspire India.
Apart from this, the company approved an additional investment of Rs 146.01 crore into GlobalBees through Series C2 Compulsory Convertible Preference Shares. This investment will help support future brand acquisitions and business growth. However, GlobalBees also faced some pressure due to legal matters and asset write-offs during the year.
Expansion Plans in India and Overseas
FirstCry continued to focus heavily on expansion in FY26. The board approved an investment of up to AED 34 million using IPO funds to grow its business in the Middle East. As part of this plan, the company will invest in Firstcry Trading Company in Saudi Arabia and Firstcry Retail DWC LLC in the UAE. These transactions are expected to be completed by June 30, 2026.
The company also entered the US market by acquiring a 100% stake in Swara Corp., a Delaware-based company, for $10,000. This marks the beginning of FirstCry’s expansion into the American market.
In India, the retailer plans to open 350 new stores over the next three years. The company is also testing a faster delivery service called “FirstCry Qwik” in selected cities. The pilot project aims to reduce delivery time from six hours to less than three hours through partnerships with local logistics companies.
These expansion efforts show the company’s focus on improving customer experience and strengthening its position in the retail and quick-commerce sectors.
Legal Issues and Boardroom Changes Remain Concerns
Despite strong financial growth, FirstCry faced several challenges during the year. An insolvency plea was filed against GlobalBees at the National Company Law Tribunal (NCLT) in New Delhi. The petition was filed by Ashutosh Garg, Paritosh Garg, and Manju Agarwal, who claimed alleged dues of Rs 64.92 crore along with 18% annual interest.
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After the news became public, BrainBees shares reportedly fell by around 1.5%. The company also saw important board-level exits at GlobalBees. Three directors connected to major investors, including Premji Invest, Chiratae Ventures, and Lightspeed India Partners, stepped down from the board recently.
In addition, FirstCry reported an exceptional write-off of Rs 23.8 crore related to inventory and current assets from a non-core business under GlobalBees subsidiaries. The company had earlier also reported losses due to a warehouse fire in FY25 that damaged inventory and property. Looking ahead, FirstCry is also closely watching the impact of India’s new Labour Codes, which may affect future employee benefit costs and compliance requirements.
Even with these challenges, the company’s improving profitability, strong expansion plans, and better operational performance suggest that FirstCry is preparing for long-term growth in both Indian and international markets.