1. At a Glance
Once upon a diaper, a startup called FirstCry promised to make parenting easier — and 15 years later, it’s still trying to make investors feel the same way. Brainbees Solutions Ltd, the parent company of FirstCry, reported Q2FY26 revenue of ₹2,099 crore (up 10.2% QoQ) and a loss of ₹33.2 crore (down 33.1% QoQ). Market cap? A chunky ₹16,543 crore. Current price? ₹317 — down from ₹665 highs, which means this baby stock has slipped harder than a toddler on polished tiles.
Return over one year? -41.9%. ROE? -4.07%. ROCE? -0.4%. And yet, it’s valued at 3.47x book and an EV/EBITDA of 43.1x — because apparently, Indian investors adore companies that sell nappies but still burn cash like matchsticks in a nursery.
The sales momentum remains impressive, though — GMV rose 16% YoY to ₹10,585 crore in FY25. But the bottom line? Still a diaper fire. Grab your baby wipes, dear investor. This one’s going to be a long, messy ride.
2. Introduction – When Startups Grow Up, But the Profits Don’t
If Amazon had a baby and Nykaa was the godmother, that baby would probably look like FirstCry — adorable, ambitious, and occasionally throwing tantrums when profits don’t arrive.
Founded in 2010 by Supam Maheshwari, Brainbees built its empire around moms, babies, and toddlers — the kind of audience that never stops consuming. From baby lotions to school bags, they sell everything except the sleep parents lose while shopping online.
The platform boasts 1.82 million SKUs from over 8,000 brands, and operates in 533+ cities with 1,156 stores. Nearly 78% of its GMV comes online, and the rest from offline retail — a hybrid model India loves to over-celebrate as “omnichannel” (read: still figuring out logistics).
But the real twist? Despite being India’s largest mother-and-baby marketplace, the company continues to report losses year after year. In FY25 alone, losses stood at ₹265 crore — smaller than earlier years but still too big to ignore.
Still, FirstCry has become more than a store; it’s a social network for sleepless parents. Its content-led strategy — via parenting blogs and communities — is the company’s not-so-secret weapon to hook customers before their first delivery. Smart. Sinister. Slightly adorable.
3. Business Model – WTF Do They Even Do?
Brainbees Solutions Ltd (FirstCry) isn’t your average e-commerce play. It’s a multi-channel retail platform for mothers, babies, and kids. Think of it as the Big Bazaar of Babyland, where half the customers come for diapers and stay for designer rompers.
Here’s how the business breaks down:
- Online (78% of GMV) – The e-commerce site and app, powered by data, content, and digital ads.
- Offline (22% of GMV) – 1,156 stores across India: 527 COCO (Company-Owned) and 629 FOFO (Franchise-Owned).
- Home Brands (55%+ of India GMV) – BabyHug, Pine Kids, Cute Walk, and Babyoy. These private labels are the secret sauce — higher margins, better brand control,
- and parental loyalty that’s borderline obsessive.
- Globalbees (21% of total revenue) – The D2C roll-up arm, investing in brands like HealthyHey and Butternut Ventures. Because apparently, if you can’t make money yourself, just buy others who might someday.
- International Business (11% of revenue) – Mainly UAE and KSA, growing 15% YoY. AOV abroad is 4.1x India — proof that Gulf parents spend more on bibs than most Indians on broadband.
The model banks on network effects — pull in new parents via content, convert them to shoppers, and retain them through product breadth. It’s basically a SaaS play disguised as a toy store.
4. Financials Overview
| Metric (₹ Cr) | Latest Qtr (Q2FY26) | YoY Qtr (Q2FY25) | Prev Qtr (Q1FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 2,099 | 1,905 | 1,863 | 10.2% | 12.7% |
| EBITDA | 62 | 57 | 33 | 8.7% | 87.9% |
| PAT | -33.2 | -63 | -67 | 47.3% | 50.5% |
| EPS (₹) | -0.67 | -1.47 | -0.89 | 54.4% | 24.7% |
Commentary:
The baby giant’s revenue keeps crawling up, but profits still refuse to walk. QoQ improvement is visible — losses halved — but EBITDA margin at ~3% still screams “teething stage.” The only thing growing faster than sales is depreciation — ₹98 crore this quarter. If enthusiasm could be capitalized, FirstCry’s P&L would look stunning.
5. Valuation Discussion – The Nappy Math
Let’s play valuation peekaboo.
P/E Method: EPS (annualized) = -0.67 × 4 = -2.68 → P/E not meaningful (negative earnings).
EV/EBITDA Method:
EV = ₹17,160 Cr
EBITDA (TTM) = ₹398 Cr (approx from FY25 data)
→ EV/EBITDA ≈ 43x
Peers like Nykaa trade around 40–45x EBITDA. So Brainbees is being priced like it already graduated to profitability school, even though it’s still in the cradle.
DCF (Educational Purpose):
Assume EBITDA grows 20% annually for five years, terminal growth 5%, WACC 11%. Fair EV range roughly falls between ₹14,000–₹18,000 crore.
Fair Value Range: ₹270–₹345 per share.
Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Brainbees’ FY25 and FY26 newsfeed reads like a parenting diary — constant activity, occasional panic, and frequent “learning experiences.”
