Introduction
Brainbees Solutions, the parent company of FirstCry, has grabbed attention in the financial markets with its stellar Q2 FY25 performance. The company reported narrowed losses, improved operational metrics, and revenue growth, resulting in a 7% surge in its stock price. In this article, we break down the financial highlights and what this means for investors.
Q2 FY25: A snapshot of success
Key Numbers
- Net Loss: ₹62.85 crore, down from ₹119.4 crore YoY and ₹75.6 crore QoQ.
- Revenue: ₹1,904.91 crore, up 26% YoY and 15% QoQ.
- Gross Merchandise Value (GMV): ₹2,529 crore, a 21% YoY increase.
- Adjusted EBITDA: ₹80.1 crore, a 66% YoY jump, with margins rising to 4.2% from 3.2%.
- Annual Unique Transacting Customers: Up 16.5% YoY, reaching 9.9 million.
Stock market impact
Brainbees’ stock ended the day at ₹519.10, reflecting optimism following the results. While still below its August 2024 listing price of ₹645, the strong quarterly performance has reignited investor confidence.
Also read: NALCO Stock rises 5% following strong Q2 Results
What drove the numbers?
Strong revenue growth
The company’s revenue increase was fuelled by strong performance across domestic and international markets.
- India Multi-Channel Business: Adjusted EBITDA rose by 38% YoY, while revenue grew 19%.
- International Operations: Delivered 25% YoY growth with improved profitability.
- GlobalBees Segment: Achieved a remarkable 55% revenue growth YoY.
Operational efficiencies
Improved gross margins (up 101 basis points YoY) and operating leverage contributed significantly to the profitability. The adjusted EBITDA margin rose to 4.2% in Q2 FY25 from 3.2% in the same period last year.
You may also read: NMDC Shares Decline 4% Post Q2 Earnings Announcement
Customer expansion
The 16.5% growth in annual unique transacting customers indicates increasing consumer trust and repeat business.
Challenges and road ahead
Despite the impressive performance, Brainbees shares remain below their listing price, reflecting cautious investor sentiment. Sustaining growth and addressing loss-making quarters are key areas for the company moving forward.
However, with the following strengths, Brainbees is poised for further growth:
- Digital Penetration: Leveraging India’s expanding e-commerce landscape.
- Product Diversification: Expanding offerings under FirstCry and other segments.
- Global Expansion: Building on international revenue momentum.
Value table for investors
| Metric | Q2 FY25 | Change (YoY) | Change (QoQ) |
| Net Loss | ₹62.85 crore | -47% | -17% |
| Revenue | ₹1,904.91 crore | 0.26 | 0.15 |
| GMV | ₹2,529 crore | 0.21 | Not Available |
| Adjusted EBITDA | ₹80.1 crore | 0.66 | Not Available |
| Annual Unique Transacting Users | 9.9 million | 0.165 | Not Available |
Also read: Jubilant FoodWorks Shares Surge 9% After Q2 Earnings
Why this matters to you
The latest results showcase Brainbees’ ability to navigate market challenges while achieving growth. Investors seeking opportunities in the retail-tech sector should keep an eye on the company’s ability to convert revenue growth into sustained profitability.
Whether you’re a seasoned investor or just getting started, this stock’s recent performance might be worth analysing further.
