SYNOPSIS: Brainbees Solutions fell over 19 percent in the last five sessions after margin pressure from heavy discounting, widening YoY losses, weaker IMC profitability, and brokerage downgrades, cutting estimates and target price, despite revenue growth.
Shares of a company involved in offering products for mothers, babies, and kids through its online platform have been under sustained selling pressure over the past few sessions. So, what exactly is triggering the fall in the stock prices? Let’s break it down in the article.
Price Movement & More:
With a market cap of Rs. 11,161 crores, shares of Brainbees Solutions Limited hit a new 52-week low at Rs. 207.2 on BSE, down by around 4 percent, as against its previous closing price of Rs. 216.15. So far in 2026, the stock has delivered negative returns of around 26 percent, and has fallen by over 19 percent in the last five trading sessions.
The company made a robust debut on the stock exchanges on 13th August 2024. The stock was listed at Rs. 625 on the BSE, marking a premium of Rs. 160 or 34.4 percent over its issue price of Rs. 465. On the NSE, it opened at Rs. 651, delivering a gain of Rs. 186 or 40 percent to investors compared to the allotment price. However, the stock has since declined sharply and is now down nearly 67 percent from its BSE and NSE listing prices.
Brainbees Solutions Limited (FirstCry) is engaged in the business of buying, selling, advertising, promoting baby and kids products and Fast Moving Consumer Goods (FMCG) on a wholesale basis through various business partners. The company also runs a pre-school business for kids through various franchisee partners in India.
It has the following three reportable segments: (i) India multi-channel segment includes manufacturing, buying, selling, advertising, promoting baby and kids products in India; (ii) International segment includes buying, selling, advertising, promoting baby and kids products outside India, which primarily includes the UAE and Kingdom of Saudi Arabia; (iii) Globalbees segment is a direct-to-consumer (D2C) venture that aggregates and invests in e-commerce brands and helps the brands scale and transform their digital impression.
Disappointing Financial Performance
Brainbees Solutions Limited announced the financial results for the third quarter of FY26 on Friday, 13th February, after market hours, as per the latest regulatory filings with the stock exchanges.
For Q3 FY26, the company posted a consolidated revenue from operations of Rs. 2,424 crores, reflecting a sequential growth of nearly 15 percent QoQ compared to Rs. 2,099 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue increased by around 12 percent from Rs. 2,172 crores recorded in Q3 FY25.
Meanwhile, the company reported a net loss of Rs. 39 crore, reflecting a sequential improvement of about 24 percent QoQ compared to a loss of Rs. 51 crores in Q2 FY26. However, on a year-on-year basis, the loss widened by nearly 71 percent from Rs. 15 crores reported in Q3 FY25.
Brokerage Outlook
According to domestic brokerage firm JM Financial, increased discounting within the IMC business, along with continued underperformance of certain non-core GlobalBees brands, has weighed on gross margins. As a result, gross margins declined by 220 bps YoY to 34.8 percent in the December quarter.
Following the Q3 results, the brokerage has revised its gross merchandise value (GMV) and revenue estimates for the IMC segment downward by 1-4 percent over FY26-FY29E.
Consequently, the brokerage has reduced its valuation multiples for the IMC and International segments. IMC is now valued at 27.5x FY28E Pre-Ind AS adjusted EBITDA (earlier 30x), GlobalBees at 20x, and other segments at 15x. The International segment multiple has been cut to 1x FY28E sales from 1.5x earlier. These readjustments have led to a downward revision of the March 2027 target price to Rs. 390 from Rs. 460 previously.
Revenue Mix
Segment-wise, for the quarter ended December 2025, the India multi-channel (IMC) segment remained the largest contributor, generating Rs. 1,645.76 crore and accounting for roughly 68 percent of total revenue, up around 9 percent YoY from Rs. 1,510.6 crores. However, its EBIT declined to Rs. 163.8 crore from Rs. 168.8 crore in the previous year, and the margin fell to 10 percent from 11.2 percent last year.
The segment witnessed a sequential improvement in YoY growth rate, despite relatively muted consumer sentiment in Q3. Its diapering category witnessed heightened competitive intensity during the quarter, which led to pressure on growth & margins, along with supply chain volatilities in a few select categories, which impacted overall growth by around 200 bps in Q3 FY26.
The International segment contributed Rs. 279.6 crore, forming nearly 11 percent of revenue, and recorded a marginal growth of about 7 percent YoY compared to Rs. 261.4 crore in the year-ago quarter. This segment experienced elevated promotional activities led by two horizontal e-commerce players that entered these markets in 2024.
Meanwhile, the Globalbees segment contributed Rs. 515 crore, or ~21 percent of revenue, and grew around 21 percent YoY from Rs. 422.2 crore in December 2024. The segment delivered a strong quarter of organic and profitable growth, with core categories delivering 30 percent YoY growth in 9M FY26 with Rs. 69.8 crores Adjusted EBITDA (post corporate expenses).
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