FirstCry parent's shares plunge 4% after Q4 net loss widens to Rs 111.5 crore

The shares of Brainbees Solutions, the parent organisation of FirstCry, dropped over 4 percent on May 27 after the company reported a net loss of Rs 111.5 crore for the fourth quarter of FY25. The shares of the company were trading at Rs 359 apiece in the morning.

Brainbees Solutions released its results for Q4 of the financial year 2025 in the post market hours of May 26. Notably, the company's Rs 111.5 crore net loss marked a significant increase from the Rs 43.2 crore net loss reported in the same period of the previous financial year. Sequentially, the net loss witnessed a more pronounced rise from the Rs 14.7 crore reported in Q3 FY25. However, the firm's Q4 FY25 net loss included a one-time loss of Rs 36.7 crore.

Its revenue from operations, however, increased 16 percent to Rs 1,930.3 crore in Q4 FY25 from Rs 1,668.9 crore in Q4 FY24. The revenue fell 11 percent compared to Rs 2,172.3 crore in the previous quarter.

Slowdown in offline sales impacted growth in the March quarter. The management termed the slowdown as a "temporary blip". Gross merchandise value (GMV) from offline channels stood at Rs 466.9 crore in Q4 FY25, up marginally from Rs 443 crore in the year-ago period.

"We are very happy to report that India Multi-channel business turned PAT and Free Cash Flow positive in FY25. We remain very optimistic and will keep working hard to deliver on both growth and profitability expansion for all business segments," the company's management said.

Additionally, the company announced in another exchange filing that Bureau of Indian Standards (BIS) conducted searched at one of its warehouses in Bengaluru on May 26, and seized good worth Rs 90 lakh. "The Company has fully cooperated with the officials throughout the process. This has not impacted the operations of the Company, which are continuing as usual," it said.

Brainbees further added, "The Company is seeking appropriate legal advice and has no reasons to believe that the products seized by BIS are non-compliant of BIS laws. We would like to emphasize that the Company has always maintained high standards of integrity, corporate governance, and compliance in all aspects of its operations, including compliance with BIS laws. We remain committed to upholding these standards."

The shares of the company had listed with a 40 percent premium over IPO price at Rs 651 apiece in August last year. The stock has now fallen around 45 percent since then, and is currently lower than its IPO price of Rs 465 apiece.Despite today's fall in share price, FirstCry shares have risen over 7 percent in the past one month, and around 4 percent in the past five days.