Synopsis:
Brainbees Solutions Ltd, operating under the brand FirstCry, saw investor attention after Morgan Stanley maintained its ‘Overweight’ rating with a price target of Rs. 574, highlighting early- to mid-teens revenue growth potential for its international business and India multi-channel segment.
India’s e-commerce and children’s products sector witnessed renewed interest after Morgan Stanley reaffirmed its positive stance on a leading digital-first BPC player, projecting strong growth in core markets and improved unit economics.
The company in focus is Brainbees Solutions Ltd, with a market capitalisation of Rs. 19,317.96 crore, opened at Rs. 373.55 against the previous close of Rs. 374.75, marking an early intraday dip of 0.33 percent. The stock climbed to an intraday high of Rs. 388, marking a rise of 3.5 percent.
What’s the News?
Morgan Stanley has maintained an ‘Overweight’ rating on Brainbees Solutions Ltd with a revised price target of Rs. 574, indicating a potential upside of 53 percent from today’s opening price of Rs. 373.55.
The brokerage expects the company’s international business to deliver early- to mid-teens revenue growth over the coming quarters, while India’s multi-channel operations are projected to post early-teens growth in FY26. Morgan Stanley emphasised that the company remains focused on improving unit economics despite Q1 delivery falling short of expectations.
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Q1FY26 Results Snapshot
On a quarter-on-quarter basis, Brainbees Solutions Ltd’s revenue declined by 3.44 percent from Rs. 1,930 crore in Q4FY25 to Rs. 1,863 crore in Q1FY26. Operational profit rose by 106.25 percent from Rs. 16 crore to Rs. 33 crore, while PBT improved from a loss of Rs. 118 crore to Rs. -66 crore. Net loss decreased from Rs. -112 crore to Rs. -67 crore over the same period.
Year-on-year, the company’s revenue advanced by 12.79 percent from Rs. 1,652 crore in Q1FY25 to Rs. 1,863 crore in Q1FY26. Operational profit fell from Rs. 49 crore to Rs. 33 crore, while PBT improved slightly from a loss of Rs. -70 crore to Rs. -66 crore. Net Loss improved from Rs. -76 crore to Rs. -67 crore.
The company reported 25 percent growth in Adjusted EBITDA for the consolidated business in Q1FY26 and also turned Free Cash Flow positive during the quarter. Growth in India’s multi-channel business was moderated due to a broad-based consumer slowdown, last-mile delivery challenges, and elevated geopolitical tensions in North India. Encouraging signs of recovery were seen in July, with both PBT and Free Cash Flow positive performance continuing.
International business maintained sustainable growth, delivering a 30 percent YoY improvement in Adjusted EBITDA. In FY25, 38 percent of GMV from the top 20 cities was generated by cross-channel customers transacting both online and offline. Orders increased from 9 million in Q1FY25 to 9.5 million in Q1FY26.
Brainbees Solutions Limited, operating under the brand FirstCry, is an e-commerce leader specialising in products for mothers, babies, and children. The company offers a diverse range of apparel, toys, and baby gear through both its online platform and physical retail stores, leveraging a strong omnichannel presence to capture market growth.
Written by – Manan Gangwar
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