FirstCry Q1 FY27 Revenue Rises 13.1% as Margins Face Pressure

Sixteen years after its launch, FirstCry has expanded from a kidswear marketplace into a multi-channel ecommerce and retail business with a portfolio of brands and a growing education segment. The company now operates across babycare and kidswear retail, brand aggregation through GlobalBees, international markets and preschool education.

FirstCry’s consolidated revenue rose 13.1% year-on-year (YoY) to Rs 2,106.2 Cr in Q1 FY27, while its net loss narrowed nearly 34% to Rs 44 Cr from Rs 66.5 Cr in Q1 FY26.

Founder Supam Maheshwari described the performance as the company’s strongest baseline revenue expansion over the past five years on a consolidated basis. The growth follows FY26, when FirstCry recorded total sales of Rs 8,548 Cr and reduced its statutory consolidated net loss to approximately Rs 204 Cr.

However, the company’s performance varies across its business segments. While revenue continues to grow, pressure on gross margins, operating expenses and investments in adjacent businesses remains a challenge.

GlobalBees, FirstCry’s direct-to-consumer (D2C) brand aggregation subsidiary, contributed Rs 1,894.3 Cr, or roughly 22% of consolidated operating revenue, in FY26. Meanwhile, revenue from its international businesses in the UAE and Saudi Arabia grew 10% to Rs 947.4 Cr. Together, these two businesses reported segment losses of Rs 148.5 Cr.

In Q1 FY27, revenue from FirstCry’s India multichannel business grew 17.7% YoY, while its international business rose 12%. GlobalBees remained largely flat. The fastest growth, at 47%, came from the smaller Others segment, which primarily comprises the FirstCry Intellitots preschool business.

Despite this growth, the Others segment contributes less than 1% of consolidated revenue, highlighting the uneven contribution of FirstCry’s different businesses to its overall financial performance.

The India Multichannel Business Faces Margin Pressure

FirstCry’s India multichannel business accounts for around 70% of its consolidated operating revenue. In Q1 FY27, the segment generated approximately Rs 1,456 Cr in revenue, up 17.7% YoY.

The business serves mothers, babies and children across more than 10 categories, covering needs from conception to approximately 12 years of age. However, its gross margins have come under pressure.

Gross margin declined to 35.2% in Q1 FY27 from 37.8% in Q1 FY26. This indicates that despite higher sales, FirstCry retained a smaller share of revenue before accounting for delivery, marketing and other operating expenses.

Diapers remain a key pressure point. Although the category contributes only 15% of gross merchandise value (GMV), it serves as an important customer acquisition channel. The high-volume category faces competition from quick-commerce platforms and private-label discounting, which weighs on the overall gross margins of the multichannel business.

FirstCry’s parent company, Brainbees Solutions Limited, holds a 76.59% stake in Swara Baby Products Limited, giving it promoter status in the company. Swara Baby Products is preparing for a separate Rs 1,000 Cr IPO, which could allow FirstCry to further vertically integrate its diaper supply chain.

To address margin pressures, FirstCry has been expanding its private-label brands, particularly Babyhug, Pine Kids, Cute Walk and Babyoye. These brands give the company greater control over product pricing, sourcing and margins.

Logistics and Quick Commerce Expansion

FirstCry is also investing in its logistics infrastructure and faster delivery capabilities.

Its in-house logistics platform, RocketBees, had expanded to 72 cities and covered around 50% of total online shipments as of June 2026. During the Q1 FY27 earnings call, Maheshwari also highlighted a 20% improvement in delivery turnaround time.

The company’s under-three-hour delivery pilot, FC Qwik, was operational across 12 cities and completed approximately 1.25 Lakh shipments in June 2026.

Maheshwari said the company initially aimed to move 10% of its overall shipments onto FC Qwik but now plans to increase the share to 20% of volumes. He also said FC Qwik’s turnaround time had been reduced from three hours to two hours in selected cities, with further improvements under consideration.

Physical Retail Network Continues to Expand

FirstCry continues to invest in its offline retail network, which had grown to around 1,190 stores by FY26.

The offline business recorded approximately 15% YoY GMV growth in Q1 FY27. Management is targeting another 90 to 100 net store additions during FY27.

The physical network helps FirstCry expand product discovery and customer reach, particularly beyond major metropolitan markets. However, operating a large store network alongside faster online fulfilment also adds to the company’s cost base.

The pressure is visible in the segment’s profitability. Despite 17.7% revenue growth in Q1 FY27, the India business’s adjusted EBITDA declined from approximately Rs 107 Cr to Rs 84 Cr. Its adjusted operating margin contracted from around 8.6% to 5.8%.

FirstCry expects some relief as higher raw material and currency-related costs are gradually passed on through product pricing. According to management disclosures following Q1, a fuller recovery is anticipated from Q3 FY27.

However, competitive pressure in the diaper category could take longer to ease. The key challenge for FirstCry’s India business is to convert higher revenue into stronger profitability.

GlobalBees Faces Growth Challenges Despite Margin Improvement

GlobalBees represents another major part of FirstCry’s business, operating as a D2C brand aggregation platform.

In FY26, GlobalBees recorded 20% YoY revenue growth. However, that momentum slowed in Q1 FY27, when revenue remained almost flat with a marginal reduction. Revenue from its core categories grew only 2% YoY.

FirstCry has allocated significant capital to the subsidiary. Brainbees Solutions earmarked Rs 169 Cr from its IPO proceeds for GlobalBees to gain further control of its portfolio under the house-of-brands model. By March 2026, it had deployed Rs 104.81 Cr of this allocation. Separately, in March 2025, Brainbees approved a further infusion of up to Rs 146 Cr.

Despite this financial backing, GlobalBees has not acquired a new brand since September 2022.

During the FY26 earnings call, CEO Anuj Jain said the company had rationalised its portfolio by exiting brands struggling with slower growth and persistent losses. GlobalBees has shifted its focus towards four core categories: home improvement, appliances, personal care and lifestyle.

The restructuring appears to have improved profitability. Despite flat revenue, adjusted EBITDA rose 308% YoY from Rs 4.1 Cr to Rs 16.7 Cr. Operating margins also increased from 1% to 3.9%.

Jain described the portfolio changes as a temporary and planned transition expected to be completed in the second quarter. He said growth should recover during the winter months.

The next few quarters will indicate whether GlobalBees can restore revenue growth while maintaining the improvement in profitability.

International Business Continues to Target Premium Markets

FirstCry entered the UAE in 2019 and Saudi Arabia in 2022, targeting markets where spending per child is substantially higher than in India.

Average spending per child on its Indian platform is around Rs 9,280 to Rs 9,350. The corresponding figures are approximately Rs 61,000 to Rs 71,000 in Saudi Arabia and Rs 1,60,000 to Rs 1,70,000 in the UAE.

However, converting this higher-spending customer base into profits has been difficult amid aggressive discounting by larger ecommerce competitors.

FirstCry reduced its proposed allocation for international operations following its IPO, raising questions about the pace and capital requirements of its overseas expansion. Management continues to view the region as a long-term opportunity.

In Q1 FY27, international revenue rose 12% YoY to Rs 232.1 Cr from Rs 207.2 Cr. Adjusted EBITDA losses narrowed 22% to Rs 16.7 Cr, while the adjusted EBITDA loss margin improved from approximately 10% to 7%.

Management is prioritising unit economics over rapid expansion and has not committed to a specific quarter for achieving break-even.

The international business has continued to grow, but its ability to translate higher customer spending into sustainable profits remains a key question.

Intellitots Preschool Business Emerges as a High-Margin Segment

Beyond babycare retail and international expansion, FirstCry’s preschool business is emerging as a smaller but more profitable part of the group.

The Intellitots preschool business falls under the Others segment. In Q1 FY27, its net revenue rose 47% YoY to Rs 19 Cr, while adjusted EBITDA increased 65% to Rs 5 Cr.

The business recorded an adjusted EBITDA margin of 26%, higher than FirstCry’s primary retail segments.

Management aims to expand the network to 1,000 preschools over the next few years. The asset-light education business offers FirstCry an opportunity to generate higher-margin revenue beyond traditional retail.

However, quarterly revenue of Rs 19 Cr remains small, and the preschool business contributes less than 1% of FirstCry’s consolidated revenue. Its current profitability therefore offers limited immediate relief to the group, although the segment could become more significant as it expands.

Can FirstCry Improve Profitability Across Its Businesses?

FirstCry’s consolidated business model is in a period of transition, with its IPO and the funds raised through the listing yet to resolve the challenges facing its different segments.

The company is balancing efforts to recover margins with continued investment in growth. Its network of more than 1,000 physical stores brings fixed costs, including commercial rent and retail payroll.

At the same time, its ecommerce business faces growing competition from quick-commerce platforms such as Blinkit, Zepto, Swiggy Instamart and Flipkart Minutes, alongside specialised players.

FirstCry has expanded well beyond its original kidswear and babycare marketplace. Its India retail operations, GlobalBees portfolio, international businesses and preschool network now serve different roles in its overall business model.

The key question is whether these businesses can generate stronger operating leverage and improve consolidated profitability without requiring another major capital infusion. The company’s ability to improve margins while sustaining growth will remain central to its performance in the coming quarters.

FAQs

1. What was FirstCry’s revenue in Q1 FY27?

FirstCry’s consolidated revenue rose 13.1% YoY to Rs 2,106.2 Cr in Q1 FY27.

2. What was FirstCry’s net loss in Q1 FY27?

The company’s consolidated net loss narrowed nearly 34% to Rs 44 Cr from Rs 66.5 Cr in Q1 FY26.

3. How much revenue did GlobalBees contribute in FY26?

GlobalBees contributed Rs 1,894.3 Cr, or roughly 22% of FirstCry’s consolidated operating revenue, in FY26.

4. How many shipments did FC Qwik complete in June 2026?

FC Qwik completed approximately 1.25 Lakh shipments in June 2026 and was operational across 12 cities.

5. What were Intellitots’ financial results in Q1 FY27?

Intellitots’ net revenue rose 47% YoY to Rs 19 Cr, while adjusted EBITDA increased 65% to Rs 5 Cr.