FirstCry Parent’s Shares Plunge 4% After Wider Q4 Net Loss of ₹111.5 Crore

Market Reaction

FirstCry parent's shares plunge 4% on May 27, following the release of Brainbees Solutions' Q4 FY25 financial results.

The stock traded at ₹359 per share during morning hours, reflecting a significant dip.

• Listed at ₹651 in August 2024, the stock has now dropped by around 45%.
• It is currently below the IPO issue price of ₹465 per share.
• Despite the recent decline, the stock has shown gains of 7% over the last month and 4% in the previous five days.

Q4 FY25 Performance Triggers Sell-Off

Brainbees Solutions, the parent company of FirstCry, reported a Q4 net loss of ₹111.5 Crore, up sharply from:

• ₹43.2 Crore in Q4 FY24
• ₹14.7 Crore in Q3 FY25

The Q4 loss also includes a one-time charge of ₹36.7 Crore, intensifying the overall impact.

This sharp rise in loss led to the market reacting negatively, contributing to the 4% drop in share price.

Financial Highlights

Revenue

• Q4 FY25 Revenue: ₹1,930.3 crore
• Q4 FY24 Revenue: ₹1,668.9 crore → 16% increase YoY
• Q3 FY25 Revenue: ₹2,172.3 crore → 11% decline QoQ

Sluggish offline sales largely drove the sequential decline in revenue during the quarter.

Offline Sales (GMV)

• Q4 FY25 GMV (Offline): ₹466.9 Crore
• Q4 FY24 GMV (Offline): ₹443 Crore → Slight YoY growth

The management referred to the slowdown as a "temporary blip" in performance.

Operational Developments

On May 26, the Bureau of Indian Standards (BIS) conducted a search operation at one of the company's warehouses in Bengaluru.

• Goods worth ₹90 lakh were seized during the inspection.
• Brainbees Solutions stated that it fully cooperated with BIS officials.
• The company clarified that this has not affected day-to-day operations.

The company also emphasized that it has always maintained high compliance with BIS regulations and is seeking legal advice to resolve the matter.

Company Overview

Brainbees Solutions is a major player in the children's retail segment through its popular brand, FirstCry.

Despite a challenging quarter, the company highlighted that its India multi-channel business turned positive in terms of Profit After Tax (PAT) and Free Cash Flow in FY25.

Article Summary

• FirstCry parent's shares plunge 4% post-Q4 FY25 results.
• Net loss widened to ₹111.5 Crore, including a one-time charge of ₹36.7 Crore.
• Revenue rose 16% YoY to ₹1,930.3 Crore but fell 11% QoQ.
• Offline GMV saw marginal growth; the slowdown impacted overall performance.
• BIS seized goods worth ₹90 lakh; operations remain unaffected.
• Stock trades below IPO price but posted short-term gains in the past month.