Shares of Brainbees Solutions, the parent company of baby products retailer FirstCry, have fallen nearly 70% from their peak since its August 2024 listing, reducing its market value to about ₹11,318 crore. This decline has occurred even as Brainbees reported a 12% year-on-year revenue increase to ₹8,548 crore in FY26 and a 24% rise in adjusted EBITDA to ₹486 crore, according to inc42.com.
During FirstCry’s March-quarter earnings call, management repeatedly emphasized the need for rationalization amid what it described as irrational competition, discounting, and pricing pressures in the quick commerce sector. The company suggested these challenges were temporary and expected the market environment to normalize. Despite the stock selloff, FirstCry’s underlying business expanded, with annual gross merchandise value crossing ₹11,600 crore and existing customers contributing nearly ₹8,930 crore, inc42.com reported.
FirstCry has been a specialist ecommerce success story in India, focusing exclusively on parents and building a comprehensive ecosystem around baby and childcare products. Unlike broader marketplaces chasing scale across multiple categories, FirstCry developed private labels, expanded offline presence, and forged partnerships to strengthen its market position. The company’s narrowing losses, from ₹265 crore to ₹204 crore, highlight operational improvements amid intense sector competition, according to inc42.com.
Brainbees’ current market valuation of ₹11,318 crore reflects investor caution despite FirstCry’s business growth and improving financials. The company’s next earnings report, expected later this year, will provide further insight into whether the rationalization strategy and market conditions support a recovery in investor confidence, inc42.com noted.