FirstCry Cuts Q2 Loss 75% to ₹12.6 Crore, With ₹42 Crore of Other Income Doing Most of the Work

FirstCry's parent Brainbees Solutions reported a Q2 FY27 net loss of ₹12.6 crore, down 75% from ₹50.5 crore a year earlier, on revenue from operations of ₹2,396 crore, according to Entrackr. The headline loss is smaller than the ₹42 crore of other income in the same quarter, which is the number that tells you how the loss narrowed.

The quarter in numbers

Revenue from operations rose 14.1% from ₹2,099 crore in Q2 FY26 and 13.8% from ₹2,106 crore in Q1 FY27. Total income, including other income, was ₹2,438 crore against total expenses of ₹2,439 crore.

Line (₹ crore)	Q2 FY27	Q2 FY26	Change
Revenue from operations	2,396	2,099	+14.1%
Material procurement	1,554	1,329	+16.9%
Employee benefit expenses	181	203	-10.8%
Total expenses	2,439	2,171	+12.3%
Net loss	12.6	50.5	-75%

For the first half, revenue was ₹4,502 crore, up 13.6% from ₹3,962 crore, and the net loss was ₹56.54 crore against ₹117 crore, a 51.7% narrowing, per Entrackr.

Strip out other income and the loss is ₹43 crore

Revenue from operations of ₹2,396 crore less total expenses of ₹2,439 crore leaves a gap of ₹43 crore. Other income of ₹42 crore closes almost all of it. Entrackr does not say what produced the further ₹11.6 crore between the ₹1 crore shortfall in total income and the reported ₹12.6 crore net loss.

The cost lines show where the improvement came from. Employee costs fell ₹22 crore, from ₹203 crore to ₹181 crore. Material procurement, the largest expense, grew 16.9%, faster than the 14.1% growth in revenue.

Procurement was 64.9% of revenue, against 63.3% a year earlier. That is a crude proxy for gross margin, since it ignores changes in inventory, but it points the same way as the segment data from the previous quarter.

1. Q2 FY2650.5 ₹ crore
2. Q1 FY2744 ₹ crore
3. Q2 FY2712.6 ₹ crore

Source: Entrackr (Q2 FY27, Q2 FY26) and Inc42 (Q1 FY27), accessed 2026-11-14

What the Q1 segments said about margins

Inc42's October 16 analysis of Q1 FY27 put the pressure in the India multichannel business, about 70% of consolidated operating revenue. It grew 17.7% to about ₹1,456 crore, while gross margin fell to 35.2% from 37.8% and adjusted EBITDA dropped from about ₹107 crore to ₹84 crore. Inc42 wrote that FirstCry "was selling significantly more but retaining less from every rupee of revenue."

The other segments pulled in different directions. International, which is the UAE and Saudi Arabia, grew 12% to ₹232.1 crore with its adjusted EBITDA loss narrowing 22% to ₹16.7 crore. GlobalBees, the brand-aggregation arm, was roughly flat. Preschools, reported under Others, grew 47% to ₹19 crore, under 1% of consolidated revenue.

Entrackr's Q2 report carries no segment split, no EBITDA and no gross merchandise value, so none of those Q1 trends can yet be confirmed for Q2. The Q1 net loss was ₹44 crore, which matches the first-half figure less Q2.

Related Indian listings and what Q2 still has to show

Related coverage of India's listing startups includes SoftBank selling 1.65% of Meesho for ₹1,885 crore and Razorpay's ₹6,000 crore IPO clearing SEBI. Inc42 framed FirstCry's open question as whether its businesses can produce enough operating gains to avoid another large funding infusion, and said Q2 would clarify direction.

Management's FY27 target, as Inc42 reported it, is 90 to 100 net new stores. The numbers to watch are the company's own Q2 gross margin and adjusted EBITDA, which the Entrackr report does not carry.