Brainbees Solutions Q4FY25: Home Brands Deliver, but Global Expansion Still Finding Its Feet
FirstCry (Brainbees Solutions) wrapped up Q4FY25 with healthy domestic momentum, even as international expansion and GlobalBees showed a more muted picture. The company remains committed to its homegrown brands and expects a meaningful earnings rebound in FY27.
Q4FY25 Highlights
Let’s break down the quarter:
- Revenue: ₹— crore, up 15.8% YoY, reflecting robust domestic demand.
- ATU (Annual Transacting Users) grew 16% in India and 25% internationally — a solid user acquisition story.
- India’s adjusted EBITDA margin expanded 47 bps YoY to 9.3%, indicating operational leverage in the core business.
- Home brands made up 55% of India’s multichannel revenue and grew faster than the broader FirstCry GMV.
Management’s Outlook
Management expects a sequential uptick in demand in the coming quarters. But they also acknowledge challenges:
- Earnings dip of 15.3% in FY26E
- Rebound of 101.7% growth expected in FY27E
So, while FY26 might be a transitional year, FY27 is shaping up to be a bounce-back year for the company.
Challenges to Watch
Despite strong domestic momentum, there are a few watchpoints:
-
GlobalBees and international business revenue growth disappointed, weighing on near-term expansion.
-
Management noted a moderation in GMV and revenue growth in Q4FY25, linked to slower business and store closures in FY25.
The stock is also expensively valued at 4616.6x P/E FY27E EPS, reflecting the market’s high expectations.
Quick View – Key Numbers
| Metric | Q4FY25 Highlights |
|---|---|
Revenue Growth | 15.8% YoY |
ATU Growth (India) | 16% YoY |
ATU Growth (International) | 25% YoY |
Adjusted EBITDA Margin (India) | 9.3% (+47 bps YoY) |
Home Brands Share | 55% of India multichannel revenue |
FY26E Earnings Growth | ↓ 15.3% expected |
FY27E Earnings Growth | +101.7% expected |
P/E (FY27E EPS) | 4616.6x |
Revised Fair Value | ₹530 (down from ₹540) |
Final Verdict: Core Strengths Intact, Global Gears to Shift
| Particular | Details |
|---|---|
CMP | ₹375 |
Target Price | ₹530 |
Rating | BUY |
FirstCry’s domestic engine continues to hum along nicely, with home brands and user growth showing promise. The global story, however, is still in build mode, and valuations are rich. For now, the call remains BUY — with a focus on FY27’s expected earnings rebound.
Disclaimer & Full Report
This feature is based on a synopsis of a research report issued by Kotak Securities Limited. For the full story (and disclaimers), make sure to check out the original sources:
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