Brainbees Solutions Ltd

Financial Performance

• Consolidated revenue from operations: 2,106 crores; up 13% YoY.
• GMV: 2,807 crores; up 12% YoY.
• AUTC: 11.8 million; up 10%.
• Gross margin: 36.5% vs 38.5% prior year.
• Adjusted EBITDA margin: 4.24% vs 4.98% prior year.
• Loss after tax improved 34% YoY on a consolidated basis.
• Preschool segment net revenue +47%; adjusted EBITDA +65% (3 cr to 5 cr).
• GlobalBees: adjusted EBITDA margin 4.3%; EBITDA up 308% YoY.

Segment Highlights

• India Multi-Channel revenue growth ~17.7% in Q1.
• India Multi-Channel; PAT positive in Q1 FY27.
• RocketBees: 72 cities; >50% online shipments; ~20% faster turnaround.
• FC Qwik: 12 cities; 125k shipments in June (vs 60k in March).
• Offline: 15% GMV growth in Q1 from deeper product assortment.
• International revenue +12% YoY; adjusted EBITDA losses down 22%.

GlobalBees & International

• Middle East: revenue +12% YoY; losses reduced; margins improving 280 bps.
• GlobalBees: core brands margin 4.3%; revenue flatish; 308% EBITDA growth YoY.
• Preschool (GlobalBees segment) revenue +47%; EBITDA +65% (3 cr to 5 cr).

Capex & Store Expansion

• Store expansion: net 90–100 stores planned in FY27; FY28 to be stronger.
• Capital-efficiency focus; offline and online mix optimization ongoing.

Outlook and Guidance

• Guidance: growth to stay elevated; margin recovery by Q2; normalization by Q3.
• Overall normalization expected within 4–6 quarters from Q1 FY27.
• Diapering competition to moderate; FC Qwik and RocketBees to sustain growth.

Q&A Highlights

• Diapering margin delta vs non-diaper: shrinking as margins recover by Q3.
• International break-even timing not fixed; trajectory indicates improvement.
• GST 2.0 impact: minor GMV-MRP mismatch; growth subdued but recovery expected.
• Non-diapering margins remain healthy; fashion/home brands support strength.
• FC Qwik delivery planned to reach 2 hours in more cities; volumes to rise.

Risks and Watchpoints

• Diapering category competitive intensity; normalization across quarters.
• Geopolitical tensions in Middle East; potential impact on growth.
• Rupee depreciation and crude-linked costs; pass-through expected by Q2; full recovery by Q3.

Meeting Details

• Date: August 13, 2026; time not disclosed
• Type/mode: group earnings call, virtual audio-video recording

Purpose

• Discuss unaudited standalone and consolidated results for quarter ended June 30, 2026

Participants

• Audience: analysts and investors; company management not named

Availability

• Recording/presentation available on the investor relations site; links not provided

Issue overview

• Type: IPO of equity shares; public issue with OFS portion.
• Total issue size and net proceeds reported; no undersubscription observed.
• Objectives include store/network expansion, lease payments, subsidiary investments, overseas expansion, and general corporate purposes.

Utilisation of proceeds

• Utilisation is as per disclosures; no material deviations observed.
• Object I: stores expansion and related lease costs; end-quarter unutilised funds remain; partial utilisation.
• Object II: lease payments; end-quarter unutilised funds present; reimbursements noted.
• Object III: investments in subsidiaries for expansion; partial utilisation; idle funds noted.
• Object IV: overseas expansion via subsidiary; partial utilisation; idle funds noted.
• Object V: other subsidiary investments; partial utilisation; idle funds noted.
• Unutilised proceeds parked in fixed deposits and various accounts.

Governance and compliance

• Approvals: statutory approvals related to objects reported as Not Applicable.
• Material events: no adverse events or governance changes noted.
• Other information: no additional material information reported.

General Corporate Purpose (GCP)

• GCP utilisation: total across listed sub-heads; details per sub-head provided.
• Sub-heads include rent, investments, and general corporate use; board approval status not explicitly stated.

Business overview

• Core business: FirstCry platform with India Multi-Channel, International, Globalbees, COCO stores.
• Largest Indian multi-channel retailer for Mothers', Babies' and Kids' products.
• Strategic focus on Home Brands, international margin expansion, and Globalbees scaling.

Operational highlights

• Q1 FY27 consolidated revenue up 13% YoY to INR 21,062 Mn.
• GMV up 12% YoY to INR 28,072 Mn.
• 125,000 shipments through FirstCry Qwik in Jun'26.
• Globalbees Adjusted EBITDA up 308% YoY; International EBITDA losses reduced 22% YoY.
• India Multi-Channel revenue INR 14,559 Mn; International INR 2,321 Mn; Globalbees INR 4,243 Mn; Others INR 193 Mn.

Financial performance

• Consolidated Gross Margin 36.5% in Q1 FY27.
• Profit after Tax (Consolidated) −INR 440 Mn; Cash Profit After Tax INR 508 Mn.
• Consolidated Revenue 21,062 Mn; Consolidated Adjusted EBITDA 893 Mn.
• Annual Unique Transacting Customers 11.8 Mn (12-month trailing).
• GMV mix: online 22,756; offline 5,316; existing customers 23,657; new customers 4,415.

Capital structure & liquidity

• Fully diluted share capitalisation 532.4 Mn; Basic 522.1 Mn.
• ESOPs total 9.8 Mn (perf-based) and 0.5 Mn (time-based) as of Jun 30, 2026.

Strategic priorities & outlook

• Margin expansion through Home Brand mix and higher-margin categories.
• Sustainable growth in International markets with margin uplift.
• Globalbees scaling D2C brands and rationalization of brands.
• Leveraging cross-channel growth via persistent online-offline convergence.

Risks & mitigation

• Geopolitical disruptions in UAE/KSA; mitigated by sustainable growth and higher returns.

Business overview

• FirstCry is a multi-brand baby/kids retailer with India multichannel, international, and Globalbees businesses.
• Key strategic focus: grow India omnichannel, expand international reach, and scale Globalbees' D2C model.

Operational highlights

• Q1 FY27 revenue rose 13% YoY to INR 21,062 mn.
• GMV expanded 12% YoY to INR 28,072 mn.
• Online GMV 22,756 mn; offline 5,316 mn.
• India Multi-Channel revenue: INR 14,559 mn.
• International revenue: INR 2,321 mn; Globalbees: INR 4,243 mn.
• Annual Unique Transacting Customers: 11.8 mn.
• Consolidated Adjusted EBITDA: INR 893 mn; margin 4.2%.
• Cash Profit After Tax: INR 508 mn; margin 2.4%.
• India Multi-Channel revenue; Adj EBITDA: INR 835 mn; margin 5.7%.
• International Adjusted EBITDA: INR -167 mn; margin -7%.
• Globalbees revenue: INR 4,243 mn; Adj EBITDA: INR 167 mn.
• Others revenue: INR 193 mn; Adj EBITDA: INR 50 mn.

Financial performance

• Consolidated revenue: INR 21,062 mn; +13% YoY.
• Gross margin: 36.5%.
• GMV: INR 28,072 mn; +12% YoY.
• Segment contributions: India 14,559; International 2,321; Globalbees 4,243; Others 193.
• Segment Adjusted EBITDA: India 835; International -167; Globalbees 167; Others 50.
• Inventory days 91; Working capital days 54.

Capital structure & liquidity

• Fully diluted share capitalisation: 532.4 mn shares.
• Basic shares outstanding: 522.1 mn.
• ESOPs outstanding: time-based 0.5 mn; performance-based 9.8 mn.

Strategic priorities & outlook

• Margin expansion via International and Home Brands; cross-channel growth.
• Scale Globalbees and replicate the international playbook.
• Geographic expansion in UAE/KSA; continue online/offline mix optimization.

Risks & mitigation

• Diapering category competition remains elevated; non-diapering GMV (~85%) remains robust.
• Geopolitical disruptions in the Middle East; growth supported by stable markets.

Meeting Details

• Date and time: August 13, 2026 at 06:00 P.M. IST.
• Type/mode: virtual earnings call with investors and analysts.
• Organizer: Brainbees Solutions Limited earnings call for Q1 FY27.

Participants

• Company management; senior management will answer questions.

Purpose

• Discuss Q1 FY27 results and performance outlook.
• Post-call Q&A with investors/analysts.

Additional Notes

• The call will be recorded.
• Transcript will be available on the investor-relations site.

Meeting Details

• Board meeting scheduled for Aug 13, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated financial results for quarter ended June 30, 2026.

Other Notes

• Trading window closed from July 1, 2026 to Aug 15, 2026 (48 hours after results).

Dematerialisation processing and listing

• Securities received for dematerialisation in quarter ended 30 June 2026 were confirmed to depositories.
• Securities dematerialised have been listed on exchanges where the original securities are listed.
• Physical certificates received for dematerialisation were mutilated and cancelled after verification.
• Depository name substituted as registered owner in records within prescribed timelines.