Indian Economic Overview
India continued to rank among the worlds fastest- growing major economies in FY 2025-26, with real GDP growth estimated at 7.7%, according to the Provisional Estimates released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). The latest estimates, based on the revised national accounts series with 2022-23 as the base year, reflect continued momentum in economic activity, supported by broad-based growth across key sectors. The economy maintained its growth trajectory despite global trade headwinds, geopolitical uncertainties and other external challenges.
Growth during the year was broad-based. Private Final Consumption Expenditure (PFCE), the primary engine of Indias economy, grew at approximately 7.7%, accounting for 61.5% of GDP, its highest share since FY 2011-12. This reflects a meaningful and structural revival in household consumption, supported by two powerful cyclical tailwinds: a normal monsoon season that underpinned rural incomes and agricultural output, and the personal income tax relief announced in the Union Budget
2025-26 that put significant additional disposable income in the hands of middle-class households. Gross Fixed Capital Formation (GFCF) expanded at 8.2% at Constant Prices over FY 2024-25, with continued public infrastructure outlay providing the backbone and improving private sector capex sentiment adding momentum.
On the price stability front, retail inflation as measured by the Consumer Price Index (CPI) averaged approximately 3.7% for FY 2025-26, well within the Reserve Bank of Indias (RBI) mandated tolerance band of 2-6%, and the lowest sustained level in several years. Stable food prices, moderating global commodity costs, and the effectiveness of the RBIs monetary policy framework all contributed to this benign inflation environment. Recognising the positive trajectory, the RBI initiated a rate-easing cycle during the year, reducing the repo rate to
5.25%, signalling confidence in the inflation outlook while seeking to support growth momentum. Indias fiscal consolidation path also remained on track, with the fiscal deficit contained below 4.5% of GDP, consistent with the governments medium-term consolidation framework.
A landmark structural development of FY 2025-26 was a sweeping rationalisation of the Goods and Services Tax (GST) framework, which transitioned approximately one-third of the consumer product portfolio, including a broad range of childcare and lifestyle products, into the lower 5% tax bracket.
This reform improved product affordability for consumers, and is expected to support demand across categories, and strengthen the competitive position of organised retailers relative to the unorganised sector. The year also saw India overtake Japan to become the worlds fourth- largest economy by nominal GDP, crossing the USD 4 trillion threshold, a milestone that underscores the scale and momentum of Indias economic ascent.
The year was not without its headwinds. Renewed tariff tensions from the United States created export-side uncertainty, though Indias diversified trade structure and the eventual interim trade arrangement, which brought effective tariff rates down, helped moderate the impact. Geopolitical tensions in the early part of the year caused transient disruptions to consumer activity in northern states. The early onset of the monsoon season also compressed summer consumption in certain discretionary categories. Despite these pressures, the underlying trajectory of the economy remained firmly positive, with the manufacturing sector recording double-digit growth and the services sector expanding at over 9%.
Outlook for FY 2026-27
Indias growth momentum is well-supported heading into FY 2026-27. The International Monetary Fund, in its updated World
Economic Outlook, projected Indias GDP growth at 6.4% for FY 2026-27, retaining India as the fastest-growing economy in the G20. The World Bank projected growth at 6.5%, while the Economic Survey laid out a range of 6.8-7.2%. Domestic demand, anchored by rising rural incomes, the sustained impact of income tax relief, and continued infrastructure investment, is expected to remain the primary growth driver. Inflation is projected to remain well- managed and converge toward the RBIs 4% target. The structural reform agenda, spanning digital public infrastructure, manufacturing competitiveness under PLI schemes, labour market modernisation, and the formalisation of the economy, continues to lay the foundation for a sustained higher growth trajectory.
(Sources: NSO, MoSPI, Second Advance Estimates, FY 2025-26, February 2026, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2233792; NSO First Advance Estimates of GDP FY 2025-26, January 2026, https://www. pib.gov.in/PressReleasePage.aspx?PRID=2212087; RBI Monetary Policy Statements, FY 2025-26; IMF World Economic Outlook Update, January 2026; Union Budget 2025-26, Ministry of Finance)
Industry Review
Indian Retail and E-commerce Market
Indias retail sector remains one of the most compelling long-term growth stories in the world, widely recognised as the fourth-largest retail destination globally. The sector is expected to grow to approximately USD 1.93 trillion by 2030, driven by a convergence of structural forces, rising household incomes, urbanisation, a growing and aspirational middle class, and the accelerating shift from unorganised to organised retail. According to a joint Deloitte-FICCI report published in August 2025, Indias retail sector is growing at a steady CAGR of approximately 10%, with the fastest consumption growth now emanating from Tier II and Tier III cities, which are adding nearly 100 Million new consumers to branded and organised retail by 2030.
FY 2025-26 was a year of consequential structural change for the Indian retail landscape. The GST rationalisation, which brought a wide range of consumer products, including childcare essentials, into the lower 5% tax bracket, was the single most significant policy development for organised retail during the year. By meaningfully improving affordability, the reform is expected to support demand, narrow the price gap between organised and unorganised players, and incentivise consumers to trade up to branded and quality- assured products. Gen Z, which accounted for approximately 43% of Indias total consumption in 2025 with a direct spending power of USD 250 Billion, continued to drive demand for premiumised, experience-rich, and digitally accessible retail. The private consumption growth rate accelerated from 8% over 2022-24 to approximately 10.5% in 2025, supported by income tax relief, easing inflation, lower lending rates, and rural income improvement, all of which meaningfully expanded wallet availability for consumers across segments.
Indias e-commerce market crossed USD 145 Billion in 2025 and is expected to reach approximately USD 163 Billion by 2026, growing at a CAGR of approximately 27%. The market is projected to scale to USD 345 Billion by 2030. Tier II and Tier III cities now account for over 60% of all e-commerce transactions in India, a structural shift that underscores the democratisation of digital commerce and the opportunity for organised multi-channel retailers to serve an increasingly geographically diverse consumer base. The number of online shoppers in India is projected to grow from 280-300 Million in 2025 to over 420-440 Million by 2030, driven by improving digital access, logistics connectivity, and rising consumer confidence in online platforms.
The single most disruptive force reshaping Indian e-commerce during FY 2025-26 was the continued and rapid expansion of quick commerce. Indias quick commerce market, already a USD 7-8 Billion market by FY 2024-25, growing at a CAGR of 110-130% over 2021-25, is projected to reach USD 65-70 Billion by 2030, contributing nearly half of incremental e-retail growth. As of 2025, quick commerce platforms operated across 80+ cities with over 7,000 micro-fulfilment centres. The impact on the broader e-commerce ecosystem was profound: consumer expectations on delivery turnaround times, reliability, and assortment responsiveness rose sharply across all retail formats. Leading organised retailers responded by accelerating investments in proprietary last-mile delivery infrastructure and technology-enabled fulfilment capabilities, recognising that delivery experience had become as important as product assortment in driving customer retention and lifetime value.
(Sources: Deloitte-FICCI Report Spotting Indias PRIME Innovation Moment, August 2025, https://www.bcg.com/publications/2026/india-clicks-and-bricks-are-defining-the-future-of-e-commerce https://www.deloitte.com/ in/en/about/press-room/india-s-us-1-06-trillion-retail-sector-is-set-to- reach-1-93-trillion-by-2030.html; IBEF E-commerce Industry Report, 2025-26, https://www.ibef.org/industry/ecommerce; IBEF Retail Industry Report, https://www.ibef.org/industry/retail-india)
Macroeconomic Factors
Indias Rising Incomes are Fuelling Future Consumption
Indias approximately 1.4 Billion people, combined with a rapidly expanding and aspirationally driven middle class, make it one of the most consequential consumption markets in the world. Emerging and mature income households, those earning above
Rs. 2.25 Lakhs annually, are expected to represent 74% of all Indian households by FY 2028-29, making them the dominant engines of future private consumption. During FY 2025-26, two powerful developments reinforced this structural trajectory.
First, rural incomes received a meaningful boost from a normal monsoon season and healthy agricultural output, sustaining consumption in Indias large rural economy. Second, the personal income tax relief announced in the Union Budget 2025-26 directly raised disposable incomes for urban middle-class households, translating into a measurable acceleration in private consumption growth. Together, these factors brought private consumption growth to approximately 10.5% in 2025, well above the 8% average recorded over 2022-24.
(Source: https://www.ibef.org/industry/ecommerce)
| Income Segment | FY 2017 | FY 2020 | FY 2023 | FY 2024 | FY 2029P |
| Total Households (in Millions) | 298 | 314 | 326 | 331 | 366 |
| Low Income (< Rs. 225,000) | 35% | 34% | 32% | 31% | 26% |
| Emerging (Rs. 225,000 - 585,000) | 36% | 38% | 38% | 38% | 34% |
| Mature (> Rs. 585,000) | 30% | 28% | 30% | 32% | 40% |
India is among the Youngest Nations in the World
With a median age of around 28 years, India stands among the youngest major economies in the world, a structural advantage that underpins long-term consumption resilience and digital adoption. Children in the 0-12 age group constitute approximately 21% of Indias population, making India home to the worlds largest child demographic in absolute terms. The Millennial and Gen Z cohorts, born 1981 through 2012, now form the dominant parenting generation in India. These consumers are digitally native, brand-conscious, research-driven, and increasingly willing to pay a premium for trusted, safe, and quality-assured childcare products. During FY 2025-26, this generational shift continued to manifest in stronger online purchase intent, greater brand loyalty to established childcare platforms, and a pronounced preference for personalised digital shopping experiences, all structural tailwinds for organised multi-channel childcare retailers.
| Age Segment | CY 2016 | CY 2019 | CY 2021 | CY 2022 | CY 2023 | CY 2028P |
| Total Population (in Millions) | 1,339 | 1,383 | 1,408 | 1,417 | 1,429 | 1,492 |
| 0\u201312 years | 24% | 23% | 22% | 22% | 21% | 20% |
| 13\u201324 years | 22% | 22% | 22% | 21% | 21% | 20% |
| 25\u201334 years | 17% | 17% | 17% | 17% | 17% | 17% |
| 35\u201344 years | 13% | 14% | 14% | 14% | 14% | 15% |
| 45+ years | 23% | 25% | 26% | 26% | 26% | 29% |
India has One of the Largest Urban Populations Globally
Indias urbanisation remains at approximately 36%, significantly below the 59-85% range seen across developed and maturing economies, a gap that represents a multi-decade runway of urbanisation-led consumption growth. Indias urban population is expected to reach approximately 582 Million by FY 2028-29, with urbanisation acting as a structural driver of higher disposable incomes, demand for modern consumer services, and adoption of organised retail across both online and offline formats. During FY 2025-26, the urbanisation story was reinforced at the sub-metropolitan level: Tier II and Tier III cities emerged as the fastest-growing markets for organised childcare retail, e-commerce, and branded consumer products. Improving logistics connectivity, rising digital payment penetration, and growing brand aspiration among smaller-city consumers are steadily expanding the addressable market for organised players well beyond Indias top metropolitan centres.
Indian Childcare Market
Indias childcare products market is underpinned by a uniquely powerful combination of structural fundamentals, approximately 21% of Indias population falls in the 0-12 age group, one of the largest child demographics in the world; annual birth numbers remain among the highest across major economies; and per-capita spending on childcare products, while growing, remains significantly below comparable economies, creating a long structural growth runway ahead. Annual spend per child on childcare products in India is projected to nearly double to Rs. 17,800-18,200 by FY 2028-29 from current levels, a CAGR of 12-14%, driven by rising per capita income, increasing brand consciousness, and growing awareness around child health, safety, and wellness.
The overall childcare products market is projected to expand at a CAGR of 12-14%, reaching Rs. 5,150-5,450 Billion (approximately USD 64-68 Billion) by FY 2028-29. A large portion of this market remains unorganised, but the organised sector, comprising both vertical specialists and horizontal platforms, is steadily gaining ground. The fundamental nature of childcare spending remains predominantly non-discretionary, making the category structurally resilient across economic cycles.
| Age Group Segment | FY 2017 | FY 2020 | FY 2022 | FY 2023 | FY 2024 | FY 2029P |
| Market Size Range (in Rs. Billion) | 1,465\u20131,565 | 1,980\u20132,080 | 1,960\u20132,060 | 2,415\u20132,515 | 2,800\u20132,900 | 5,150\u20135,450 |
| 0\u20134 Years | 39% | 39% | 42% | 41% | 41% | 42% |
| 5\u20139 Years | 35% | 35% | 34% | 34% | 34% | 33% |
| 10\u201312 Years | 26% | 26% | 25% | 25% | 25% | 25% |
FY 2025-26 was a year of significant structural acceleration for the organised childcare market.
The GST rationalisation, which brought a broad swathe of childcare and consumer products into the lower 5% tax bracket, was a landmark policy development that improved affordability for parents and sharpened the value proposition of organised, branded retailers relative to unorganised players. This reform is expected to function as a multi-year structural tailwind, progressively formalising a market where the unorganised sector has historically dominated on price. Alongside this, rising parental awareness around product quality, safety, and authenticity, driven by the Millennial and Gen Z parenting generations tendency to research products extensively online, continued to deepen the preference shift towards trusted, branded childcare products and platforms. The India baby care products market, according to recent industry research, was valued at approximately USD 4.82 Billion in 2025 and is expected to grow at a CAGR of approximately 9.17% through 2031, driven by premiumisation, online channel expansion, and growing penetration in Tier II and III cities.
Apparel, comprising clothing and footwear, remains the largest category in Indias childcare products market by virtue of its essential and high-frequency nature. However, non-apparel categories including consumables, hard goods, and toys continued to grow at a faster pace during FY 2025-26, reflecting increasing adoption, higher per-transaction basket values, and greater parental willingness to invest in developmental and lifestyle products for their children. Within consumables, the diapering subcategory experienced a distinct challenge during the year: large horizontal e-commerce platforms engaged in elevated promotional and discounting activity, creating a period of heightened competitive intensity that temporarily pressured growth and margins for organised specialty retailers in this category. The non-discretionary nature of diapering spend means the underlying demand trajectory remains intact, and the competitive dynamics in this segment are expected to normalise as the market matures. Meanwhile, demand for hard goods, including baby gear, nursery products, and developmental toys, continued to be propelled by dual-income nuclear families, rising household incomes, and growing social media-driven awareness of premium childcare products.
(Sources: RedSeer report titled Childcare Market in India dated July 11, 2024; Mordor Intelligence, India Baby Care Products Market, 2026; IMARC Group, India Baby Care Products Market Report, 2025)
Role of Multi-channel Retailing in the Indian Childcare Products Market
Multi-channel retail has emerged as a preferred model for serving customers in Indias childcare market, one that combines the discovery and convenience of digital platforms with the trust, tactile experience, and community connection of physical stores. For parents navigating an intensely personal and emotionally significant consumption journey, neither channel alone is sufficient: the in-store experience supports product evaluation and brand trust-building, while the online channel enables convenience, variety, and the increasingly important assurance of fast and reliable delivery. FY 2025-26 reinforced and accelerated several structural trends in multi-channel childcare retail.
The rapid rise of quick commerce meaningfully elevated consumer expectations on delivery speed, reliability, and responsiveness across all retail formats, not just grocery. Organised retailers who had invested ahead of the curve in proprietary delivery infrastructure found themselves with a meaningful competitive advantage: the ability to offer superior, controllable customer delivery experiences that third-party logistics networks, grappling with rising demand and structural consolidation, were increasingly unable to provide consistently. The omnichannel cross-pollination effect, where customers transact seamlessly across both physical and digital touchpoints, continued to deepen, with such customers demonstrating structurally higher basket values, greater purchase frequency, and stronger brand loyalty than single- channel shoppers. This cross-pollination dynamic is emerging as one of the most durable competitive moats for specialist multi-channel retailers in the childcare space.
Digital communities and parenting content platforms continued to deepen their influence on purchase decisions during FY 2025-26, with parents increasingly relying on peer recommendations, expert content, and influencer guidance, often delivered through integrated retail-content ecosystems, to navigate brand and product choices. This convergence of commerce, content, and community is reshaping what it means to be a trusted childcare retailer, transforming the relationship from transactional to deeply relational. Retailers who serve parents as holistic companions across the full parenting journey, from pregnancy through early childhood, are commanding meaningfully stronger customer loyalty and lifetime value.
Growth Drivers of the India Childcare Products Market
The Indian childcare products market is driven by a powerful confluence of structural, demographic, and policy-driven factors:
| Rising Disposable Incomes and Parental | GST Rationalisation: A Structural |
| Spending Intent | Demand Catalyst |
| A rapidly expanding middle class, rising household incomes, and the acceleration of consumption growth, supported in FY 2025-26 by income tax relief and rural income improvement, are translating into greater willingness among parents to invest in quality childcare products. Health, hygiene, and developmental spending for children are increasingly treated as non-negotiable priorities, insulating the category from broader consumption downturns. | The sweeping GST reform implemented during FY 2025-26, which brought a broad range of childcare and consumer products into the 5% tax bracket, is expected to function as a multi-year tailwind for the organised childcare sector, improving affordability, accelerating formalisation, and widening the competitive advantage of branded organised players over unorganised alternatives. |
| Nuclearisation of Families and Dual- Income Households | Shorter Replacement Cycles |
| The structural shift towards smaller nuclear households and dual-income families, particularly in urban India, drives higher demand for convenience-oriented, quality- assured childcare products and reduces reliance on extended family networks for childcare-related guidance and purchasing decisions. | The rapidly evolving needs of children across the 0-12 year age spectrum lead to naturally shorter product replacement cycles and higher purchase frequencies, creating a structurally recurring demand base across categories including apparel, footwear, consumables, and developmental products. |
| Tier II and Tier III Market Expansion | Premiumisation and Quality Consciousness |
| Improving digital connectivity, logistics infrastructure, and rising brand aspiration in smaller cities are opening large, underpenetrated markets for organised childcare retailers. Tier II and Tier III cities accounted for over 60% of e-commerce transactions in India in FY 2025-26, a structural shift that directly expands the addressable market for multi-channel childcare platforms. | India\u2019s Millennial and Gen Z parenting cohort is demonstrating a pronounced preference for premium, safe, and quality-assured products, particularly those with transparent ingredient sourcing, safety certifications, and strong brand credibility. This trend continued to deepen in FY 2025-26, driving trading-up across categories including baby skincare, apparel, and developmental toys. |
Rising Delivery Expectations Driving Last-Mile Investment
Quick commerces structural impact on consumer expectations, particularly around delivery speed and reliability, is prompting organised childcare retailers to invest in proprietary delivery infrastructure. Our last-mile and fulfilment capabilities to meet these evolving expectations are enabling us to deliver greater speed, reliability and convenience to our customers while creating a differentiated omnichannel experience.
The UAE Retail and Childcare Products Market
The UAE retail market continues to benefit from a structurally attractive consumer environment, a large, high-income expatriate population, robust tourist spending, a mature mall-driven retail culture, and rapidly growing digital commerce adoption. E-commerce in the UAE is projected to reach Rs. 2.2-2.4 trillion (approximately USD 28-30 Billion) by FY 2028-29, with its share of total retail expected to reach approximately 25% over this period. Strong smartphone and internet penetration, combined with an increasingly multichannel consumer behaviour, continues to drive retail market growth. During FY 2025-26, the UAE e-commerce market remained intensely competitive, with large horizontal platforms maintaining aggressive promotional activity, a dynamic that pressured margin profiles across the category and reinforced the importance for specialty players of building differentiated value propositions grounded in home brand depth, product curation, and superior customer engagement.
The UAE Childcare Products Market
The UAE childcare products market is projected to grow at a CAGR of 3-5%, reaching Rs. 240-280 Billion (approximately USD 3-3.5 Billion) by FY 2028-29. Growth is supported by a young and large expatriate population, increasing awareness of quality childcare products, rising digital adoption, and the continued expansion of both physical and online childcare-focused retail. During FY 2025-26, the organised childcare retail segment in the UAE navigated a challenging competitive backdrop with discipline, prioritising customer quality, home brand penetration, and gross margin improvement over volume at any cost. The strategic focus on acquiring high-retention customers and building a differentiated assortment is laying the foundation for a more sustainable and profitable growth trajectory in this market.
(Source: RedSeer report titled Childcare Market in India dated July 11, 2024)
The KSA Retail and Childcare Products Market
The Kingdom of Saudi Arabia presents one of the most compelling emerging market opportunities for organised childcare retail. Sustained by Vision 2030s transformative social and economic reforms, which have materially increased female workforce participation, driven urbanisation, and stimulated domestic consumption, the KSA retail market has demonstrated strong post-pandemic momentum. E-commerce penetration within overall retail is projected to increase from approximately 13% to approximately 22% by FY 2028-29, as the market is expected to grow to Rs. 3.2-3.4 trillion (approximately USD 40-42 Billion) over the same period. A large, young population with high childcare spending per capita, significantly above Indian levels, combined with the increasing presence of international and regional brands, makes KSA the largest childcare products market in the GCC.
KSA Childcare Products Market
The KSA childcare products market is projected to reach Rs. 640-680 Billion (approximately USD 8-8.5 Billion) by FY 2028-29, growing at a CAGR of 3-5% from FY 2023-24 to FY 2028-29. Growth is driven by the entry of global brands, expanding e-commerce platforms, higher female workforce participation, and growing parental awareness around child health and developmental spending.
(Source: RedSeer report titled Childcare Market in India dated July 11, 2024)
Indian Preschool Market
Indias preschool and early childhood care market is growing robustly, powered by a structural confluence of demographic and socioeconomic forces. The market is projected to reach USD 12-15 Billion by FY 2033-34, growing at a CAGR of approximately 9-11%, driven by increasing female workforce participation, the proliferation of nuclear family structures, rising urban disposable incomes, and a deepening parental commitment to quality early childhood development. Value growth is expected to outpace growth in the number of centres, reflecting premiumisation.
Parents are spending more per child as aspirations for curriculum quality, infrastructure, and holistic developmental outcomes rise. The National Education Policy 2020 emphasis on foundational learning continues to catalyse organised private sector participation, while government schemes supporting early childhood care reinforce both demand and investment confidence across the sector.
(Sources: RedSeer report titled Childcare Market in India dated July 11, 2024; IMARC Group, Indian Pre-School/Childcare Market Report, 2025; Expert Market Research, India Pre-School/Childcare Market Report and Forecast 2026-2035, https://www.expertmarketresearch.com/reports/ india-pre-school-childcare-market)
Indian Diaper Manufacturing Market
Indias baby diaper market represents one of the important growth segments within the broader childcare products universe, driven by a large and consistent birth cohort, rapid penetration of modern disposable diaper formats in Tier II and beyond cities, and rising awareness of infant hygiene among a new generation of health-conscious parents. The market is projected to expand at a CAGR of approximately 15-17%, reaching Rs. 185-195 Billion (approximately USD 2.3-2.4 Billion) by FY 2028-29. The sector benefits from strong domestic manufacturing capabilities, with the overwhelming majority of diapers produced locally, creating a resilient and largely self-sufficient supply chain that is well-insulated from global sourcing disruptions.
FY 2025-26 presented a distinct near-term challenge within the diapering category: large horizontal e-commerce platforms engaged in aggressive and sustained promotional discounting, creating a period of elevated competitive intensity that pressured margins and growth for organised specialty retailers. This type of heightened pricing intensity, driven by scale-seeking strategies of well- capitalised horizontal players, is not unprecedented in the evolution of the organised consumer products market in India. The non-discretionary nature of diapering spending provides structural insulation to underlying volume demand, and the competitive dynamics in this category are expected to normalise as players reassess unit economics.
For organised multi-channel retailers with diversified category exposure, the diapering headwind was offset by continued strength in apparel, hard goods, and other consumables categories.
(Source: RedSeer report titled Childcare Market in India dated July 11,
Indian Direct to Consumer (D2C) Brands Market
Indias D2C brand ecosystem has matured significantly, evolving from a phase of growth-at-all-costs to one where sustainable profitability, portfolio depth, and operational discipline are the defining characteristics of market leaders. The D2C segment is projected to grow at a CAGR of approximately 33-35%, reaching USD 34-35 Billion by FY 2028-29 across various projections, as consumer preference for curated, category-specific, and directly-accessible brand experiences continues to deepen. Categories including home improvement and utilities, home appliances, health and personal care, beauty, and active lifestyle accessories have established themselves as high-growth strongholds for D2C players.
FY 2025-26 reinforced several important structural trends in the D2C space. Marketplace policy changes by leading platforms during the year, most notably Flipkarts revised revenue recognition and settlement framework, prompted D2C brands to reassess their channel dependencies and accelerate multi-platform distribution strategies. Brands with genuine product differentiation, strong customer retention, and diversified channel exposure proved more resilient to these platform-level disruptions than those with concentrated marketplace exposure. The growing importance of quick commerce as a distribution channel, particularly for home care, personal care, and consumable categories, opened a new frontier for D2C brands with the right product formats. Organic, entirely acquisition-driven growth, without inorganic portfolio additions, became the marker of genuinely strong D2C businesses, separating those with real product-market fit from those dependent on capital deployment for topline growth.
(Sources: RedSeer report titled Childcare Market in India dated July 11, 2024; IBEF E-commerce and D2C Industry Report, https://www.ibef.org/ industry/ecommerce)
Total Addressable Market
Our total addressable market is projected to grow at a robust CAGR of approximately 11-13%, reaching around Rs. 6,670-7,070 Billion (approximately USD 83-88 Billion) by FY 2028-29. This TAM spans
Indias childcare products market, the childcare markets of UAE and KSA, and the India preschool market, each of which benefits from distinct but mutually reinforcing structural growth drivers: rising incomes, favourable demographics, urbanisation, premiumisation, and the accelerating shift from unorganised to organised retail. The structural developments of FY 2025-26, particularly the GST rationalisation, the acceleration of household income growth, and the deepening of digital retail adoption, have strengthened the near-term growth trajectory of this TAM by improving affordability, stimulating organised sector demand, and broadening the reachable consumer base.
GlobalBees Brands, our D2C brand rollup platform, operates in Indias fast-growing D2C market, which is projected to grow at a CAGR of 33-35% to reach Rs. 2,720-2,760 Billion (approximately USD 34-35 Billion) by FY 2028-29. The strong organic growth delivered by GlobalBees core categories during FY 2025-26, spanning Home Improvement & Utilities, Home Appliances, Health & Personal Care, and Active, Lifestyle & Accessories, is a direct validation of the scale and quality of this TAM.
(Source: RedSeer report titled Childcare Market in India dated July 11, 2024)
Company Overview
Brainbees Solutions Limited, operating under the brand FirstCry, is Indias largest multi-channel retailing platform for Mothers, Babies, and Kids products by GMV * . We operate one of Indias most comprehensive platforms catering to the full spectrum of parenting needs through three integrated pillars: commerce, content and community, and education. Founded in CY 2010 with the vision of building a one-stop destination for parents, FirstCry has grown into an ecosystem that accompanies families from the earliest stages of pregnancy through approximately 12 years of a childs life, building a long-duration, high-frequency, and deeply trusted relationship that evolves in step with the childs growing needs. Our international expansion into the UAE and KSA, initiated in CY 2019 and CY 2022 respectively, has extended this proven multi-channel playbook to two of the most attractive childcare markets in the GCC. FY 2025-26 was a year in which we continued to strengthen the operating capabilities required to support long-term growth, while maintaining a clear focus on profitability and cash generation. Despite a challenging operating environment and margin pressure in select categories during the second half, the Group delivered meaningful financial progress: India Multi-Channel remained PAT and Free Cash Flow positive, while the consolidated business achieved positive Free Cash Flow # in FY 2025-26 for the first time.
We organise our business into the following four segments
India Multi-Channel Business
The India Multi-Channel Business is our largest and most established segment, the commercial and strategic heart of our overall platform. Since inception in CY 2010, this business has pursued a fundamentally different ambition from conventional retail: to build a holistic companion for parents across the entire parenting journey, not merely a shopping platform. This has meant integrating commerce with trusted content, expert community, hospital partnership programmes, and early education, creating a multi-touchpoint relationship with parents that generates loyalty, repeat purchasing, and lifetime value well beyond what any single-channel approach could sustain.
The India Multi-Channel platform operates as a deeply integrated ecosystem comprising:
| Online | Offline | Content, Community, and Education |
| A powerful digital presence through the FirstCry mobile app and website, with 193 Million app downloads across India as of March 31, 2026, making it one of Indias most widely used parenting and childcare commerce platforms. | A nationwide network of 1,189 modern stores as of March 31, 2026, comprising 536 Company-Owned Company-Operated (COCO) stores and 653 Franchisee- Owned Franchisee- Operated (FOFO) stores, complemented by general trade retail distribution. | A deeply engaged parenting community integrated within the FirstCry app, offering curated content, expert guidance, peer-led support, and hospital gift hamper and Club membership programmes, complemented by the FirstCry Intellitots preschool network that extends the brand\u2019s community presence into local neighbourhoods across India. |
The platforms product assortment spans approximately 2 Million SKUs as of March 31, 2026, across leading Indian and global brands alongside our well-established portfolio of home brands. The home brand portfolio, anchored by BabyHug, Pine Kids, CuteWalk, and Babyoye, spans the full spectrum of childcare categories from apparel and footwear to consumables, baby gear, and personal care. These brands are developed with a deep understanding of Indian parenting needs, backed by an in-house product lifecycle management system and a network of more than 800 contract manufacturers. Home brands serve a dual strategic purpose: they generate structurally higher gross margins compared to third-party brands, and they create a product experience that is exclusive to the FirstCry ecosystem, reinforcing customer loyalty and platform stickiness.
| BabyHug caters to the 0-6 years age group with a comprehensive range spanning apparel, clothing, footwear, diapers, wipes, baby gear, toys, and personal care products. In FY 2023-24, BabyHug was recognised as the largest MBK products brand in the Asia Pacific region (excluding China) in terms of product assortment, and the largest multi-category MBK brand in India in terms of GMV * . | Pine Kids addresses the 4-12 years age group with trendy, comfortable apparel, footwear, accessories, toys, sports, and lifestyle products, including Pine Active, a dedicated athleisure range, and a bath and skincare range for tweens and teens. |
| CuteWalk is an exclusive footwear sub-brand under BabyHug, offering the largest product assortment of babies\u2019 and kids\u2019 footwear products in India. * | Babyoye is a premium baby fashion and footwear brand crafted from premium soft organic fabrics and supima cotton, catering to stylish and quality-conscious parenting choices across early childhood. |
*As per RedSeer report titled Childcare Market in India dated July 11, 2024
As of March 31, 2026, the India Multi-Channel
Business operated a supply chain network of 84 warehouses and stockists, enabling same- day delivery in more than 25 cities and next-day delivery in more than 980 cities in India, supported by a combination of third-party logistics providers and our expanding proprietary RocketBees delivery network.
A defining operational development of FY 2025-26 was the launch and rapid scale-up of RocketBees, Our proprietary, asset-light, technology-driven last-mile delivery initiative. Built entirely on a technology stack developed by us and operated through dedicated regional logistics partners working exclusively for FirstCry shipments, RocketBees was designed to address a structural gap in the Indian logistics ecosystem: the absence of differentiated, premium-quality last-mile delivery tailored to the specific requirements of a multi-category, wide-SKU childcare platform. By March 31, 2026, RocketBees had expanded to 62 cities, covering approximately 40% of our total online shipment volumes, and had delivered a meaningful improvement in delivery turnaround times relative to third-party logistics providers. The initiative is targeted to cover 45-50% of total shipments by mid-FY 2026-27. Alongside
RocketBees, we launched FirstCry Qwik, a few- hours delivery proposition piloted during the year across select cities, leveraging COCO stores and dark stores as local fulfilment nodes to serve the full FirstCry product assortment. Qwik represents our forward-looking response to the rapid rise of consumer expectations for faster delivery and positions the business to competitively serve the next generation of parenting consumers who expect the speed of quick commerce with the depth of a full-category specialist retailer.
Financial and Operational Performance for FY 2025-26 (India Multi-Channel Business)
The India Multi-Channel Business operated through a challenging external environment in FY 2025-26, characterised by relatively muted urban consumer sentiment for much of the year, transient demand deferral driven by GST transition uncertainty, heightened competitive intensity in the diapering category, and disruptions from geopolitical tensions in northern states. Despite these headwinds, the business delivered improving revenue growth on a year-on-year basis over the course of the year, reaffirming the resilience of the multi-channel childcare model. Profitability continued to strengthen, with the India Multi-Channel Business remaining PAT positive and Free Cash Flow positive for FY 2025-26. Key highlights for the year are as follows:
Annual Unique Transacting Customers grew year-on-year, reflecting continued deepening of the platforms reach and customer stickiness across both online and offline channels
Orders and Gross Merchandise Value (GMV) grew year-on-year, with online and offline channels both contributing to overall growth Revenue from operations grew year-on-year, supported by platform mix improvements and the structural shift towards higher-value transactions Gross margin in India Multi-Channel was impacted during the second half of FY 2025-26 by heightened competitive intensity in the diapering category and, in Q4, by rupee depreciation and higher crude-linked raw-material costs in the manufacturing business Despite the pressures on Gross Margin, operating leverage partly offset the impact at the Adjusted EBITDA level Omni-channel cross-pollination deepened, with a meaningful proportion of GMV in Indias major cities generated from customers transacting across both online and offline channels, a testament to the strength and integration of the multi-channel model
The following table sets out the key financial and operational metrics for the India Multi-Channel Business.
| Particulars | FY 2025-26 | FY 2024-25 |
| Annual Unique Transacting | 11.03 | 10.1 |
| Customers (Million) | ||
| Orders (Million) | 42.8 | 39.5 |
| Average Order Value (Rs.) | 2,284 | 2,229 |
| Gross Merchandise Value, GMV (Rs. Million) | 97,832.56 | 88,089.97 |
| Revenue from Operations (Rs. Million) | 57,533.35 | 52,784.90 |
| Adjusted EBITDA (Rs. Million) | 5,050.53 | 4,996.74 |
| Adjusted EBITDA Margin (%) | 8.8% | 9.5% |
Growth Drivers: India Multi-Channel Business
The India Multi-Channel Business is supported by a set of structural growth drivers that have compounded in strength over time:
Favourable Demographics and a Brand:
Conscious Parenting Generation: A large, young, digitally native parenting cohort, increasingly Millennial and Gen Z in composition, is driving a structural shift toward trusted brands, quality-assured products, and seamlessly integrated online-offline shopping experiences. These consumers research extensively, engage deeply with brand content, and reward platforms that deliver both assortment breadth and superior service.
Multi-Channel Integration and Omni-Channel Cross-Pollination: The seamless weave of the FirstCry online platform and offline store network creates unique cross-channel buying behaviours.
Customers who transact across both channels demonstrate significantly higher basket values, frequency, and brand loyalty, generating lifetime value that substantially exceeds single-channel shoppers. The GMV from top 50 cities from cross channel customers is 36% in respect of both online and offline business for the financial year 2025-26.
Home Brand Scale and Margin Expansion:
The growing share of home brands in revenue is a structural and compounding driver of both gross margin improvement and competitive differentiation. Home brands, exclusive to the FirstCry ecosystem, create a product experience that cannot be replicated by horizontal or unorganised competitors, while generating margins that fund further investment in customer acquisition and retention.
Tier II and Tier III Expansion:
Rising digital adoption, improving logistics connectivity, and growing brand aspiration in smaller Indian cities continue to expand the addressable market for the India Multi-Channel Business. Offline stores play a critical role in building brand credibility and trust in these markets, while the online platform delivers the assortment depth that local alternatives cannot match.
Delivery Experience as a Competitive Moat:
The RocketBees and FirstCry Qwik initiatives, our proprietary last-mile delivery network, is emerging as a meaningful competitive differentiator. Cities covered by RocketBees are already demonstrating higher growth rates and better delivery timelines than those served exclusively by third-party logistics, validating the investment thesis and setting the stage for broader network expansion in FY 2026-27. FirstCry Qwik, launched in December 2025, was expanded to selected catchments across five cities by March 31, 2026, enabling delivery in less than three hours in those catchments using the network of our COCO stores and our 84 warehouses and stockists across India.
Realignment of Product Portfolio for Offline Business:
We have rolled out realignment of our product portfolio for our offline business to drive further increase in footfall and conversions. This has already started giving good results in our COCO stores and the realignment is expected to be completed by Q1 FY 2026-27.
Content, Community, and Trust Ecosystem:
The FirstCry parenting platform, encompassing expert content, peer communities, hospital programmes, and the Intellitots preschool network, creates engagement touchpoints well beyond the transactional relationship, reducing customer acquisition costs over time and building a brand that parents trust not just for products but for the full parenting journey.
Strategy: India Multi-Channel Business
The India Multi-Channel Business is focused on delivering superior growth and sustained profitability improvement through the following strategic priorities:
Expand and scale the RocketBees proprietary delivery network, targeting coverage of 45-50% of total online shipments by mid-FY 2026-27, to structurally improve customer experience, reduce return-to-origin rates, and drive higher retention and growth in cities served Scale up the FirstCry Qwik quick-delivery proposition from its pilot phase into a more broadly available offering, leveraging the COCO store network and dark store infrastructure to address rising consumer expectations for faster delivery across the full FirstCry product assortment, targeting coverage of 10% of online shipments by end of FY 2026-27.
Implement the offline product portfolio realignment, a depth-over-width strategy that optimises in-store assortment to improve COGS efficiency, enable better customer pricing, and drive stronger footfall and conversion, with full rollout expected in FY 2026-27
Continue expanding the offline store network in a capital-efficient manner, with approximately 100 store additions planned in FY 2026-27 through an appropriate mix of COCO and FOFO formats Deepen home brand share in the product mix, building on the existing BabyHug, Pine Kids, CuteWalk, and Babyoye portfolio, to continue driving structural gross margin improvement Grow the customer base through a diversified acquisition ecosystem spanning digital marketing, influencer programmes, the hospital gift hamper initiative, FirstCry Club membership, and the Intellitots preschool network, while deploying increasing marketing investment behind the improving delivery experience to maximise acquisition yield
International Business
Our International Business, operating in the UAE since CY 2019 and in KSA since CY 2022, represents our first significant replication of our proven India playbook in high-potential overseas markets. Both markets are characterised by large, high-income populations with significantly higher per-capita childcare spending than India, a growing appetite for quality branded products, and an e-commerce ecosystem that is expanding rapidly. As per the RedSeer Report for FY 2023-24, we are the largest specialist online MBK product retail platform in UAE, in terms of GMV, and the largest online-first Mothers, Babies and Kids product-focused retail platform in KSA. The International Business reached 7 Million app downloads across UAE and KSA as of March 31, 2026.
FY 2025-26 was a year of measured and disciplined progress for the International Business. The operating environment remained challenging, large horizontal e-commerce platforms in the region maintained elevated promotional activity, exerting pressure on the competitive landscape. We chose to remain firmly on the path of sustainable, quality-first growth: declining to participate in margin-dilutive promotional cycles, instead focusing on improving home brand penetration, optimising the product mix, acquiring high-retention customers, and steadily reducing EBITDA losses. The International Business delivered 10% revenue growth in FY 2025-26 while continuing to improve its unit economics. Gross margin improved by approximately 240 bps year-on-year and Adjusted EBITDA loss reduced by 35% to Rs. 907 Million, with the Adjusted EBITDA margin improving to (10%) from (16%) in FY 2024-25. We also opened our first company-owned and operated physical store in Riyadh, Saudi Arabia during FY 2025-26, our first offline presence in the GCC.
Financial and Operational Performance for FY 2025-26 for International Business
Key performance highlights for the year are as follows:
Annual Unique Transacting Customers grew year-on-year, reflecting sustained and quality-focused customer acquisition across UAE and KSA despite the deliberate decision not to pursue volume through promotional pricing Revenue grew at a healthy rate year-on-year, continuing to outpace GMV growth as our ongoing optimisation of our top-line mix towards higher-revenue-retention product categories took effect Gross margins expanded meaningfully year-on-year, driven by improving home brand share in the product mix and continuing optimisation of category selection
Adjusted EBITDA losses reduced significantly year-on-year, continuing and accelerating the consistent loss-reduction trajectory sustained since FY 2022-23 The KSA Riyadh store, opened during FY 2025-26, delivered a promising early performance across both customer satisfaction and operational metrics
The following table sets out the key financial and operational metrics for the International Business.
| Particulars | FY 2025-26 | FY 2024-25 |
| Annual Unique Transacting Customers (Million) | 0.53 | 0.5 |
| Orders (Million) | 2.1 | 1.9 |
| Average Order Value (Rs.) | 9,067 | 9,197 |
| Gross Merchandise Value, GMV (Rs. Million) | 18,602.23 | 17,763.12 |
| Revenue from Operations (Rs. Million) | 9,474.18 | 8,585.52 |
| Adjusted EBITDA (Rs. Million) | (907.29) | (1,400.78) |
| Adjusted EBITDA Margin (%) | (9.6%) | (16.3%) |
GlobalBees Brands
GlobalBees Brands is our D2C brand rollup platform, in which we hold a 51.68% stake on a fully diluted basis. Operating a curated portfolio of brands across four core categories, Home Improvement & Utilities, Home Appliances, Health & Personal Care, and Active, Lifestyle & Accessories, GlobalBees sells across Indias leading online marketplaces and is building a track record of entirely organic, profitable growth. The last brand acquisition was made in September 2022; every unit of growth since has been generated organically, through deepening market penetration, stronger brand execution, new product development and category leadership within the chosen verticals. GlobalBees operates with its own management team, independent Board, and a separate investor base comprising Premji Invest, Lightspeed, and Chiratae, among others, and is evaluating strategic options for long-term value creation.
FY 2025-26 was a year of strong performance for GlobalBees core categories, which delivered robust year-on-year revenue growth and continued to improve their profitability profile. Core categories, represent more than 95% of the business, operated at adjusted EBITDA margins of approximately 4.9% post corporate expenses, reflecting the strength of the focused, high-quality brand portfolio. The overall reported GlobalBees numbers were weighed down during the year by the ongoing rationalisation of non-core brands, a deliberate and value-creating process of exiting lower-performing, loss-making portfolio brands to sharpen the businesss focus and improve overall margin quality. This rationalisation process is expected to be substantially complete in the early part of FY 2026-27, after which the overall GlobalBees reported numbers will converge with the strong underlying core category performance.
Further, a change in Flipkarts revenue recognition and settlement policy during the year had a transient effect on reported revenues and the gross margin, though the adjusted EBITDA margin continues to expand.
Financial and Operational Performance for FY 2025-26 (GlobalBees Business)
Key performance highlights for the year are as follows:
Core categories (Home Improvement & Utilities, Home Appliances, Health & Personal Care, and Active, Lifestyle & Accessories) delivered strong year-on-year revenue growth, continuing the consistent growth trajectory sustained over the past several years Core category adjusted EBITDA margins remained strong at approximately 4.9% post corporate expenses, demonstrating the underlying profitability and scalability of the focused portfolio
Overall adjusted EBITDA for GlobalBees improved significantly year-on-year as operational leverage increased, and the mix shifted towards higher-margin core categories Brand portfolio rationalisation progressed during the year, with non-core brand exits creating short-term reported revenue headwinds but improving the quality and sustainability of the overall margin profile The following table sets out the key financial metrics for the GlobalBees segment.
| Particulars | FY 2025-26 | FY 2024-25 |
| Revenue from Operations (Rs. Million) | 18,943.48 | 15,777.02 |
| Adjusted EBITDA, Overall (Rs. Million) | 558.65 | 220.56 |
| Core Category Revenue Growth (YoY %) | 27.7% | 30% |
Others, Preschool Business (FirstCry Intellitots)
Our preschool business, operating under the FirstCry Intellitots brand, continued its robust growth trajectory in FY 2025–26, with revenue and EBITDA growing at healthy double-digit rates year-on-year. The organised preschool segment continued to expand rapidly, driven by increasing adoption of franchise-led models, technology-enabled learning tools, curriculum innovation aligned with the National Education Policy (NEP) 2020, and rising demand from Tier II and Tier III cities. Against this favourable backdrop, the Intellitots network reached 436 preschools as of March 31, 2026, and continued to deliver strong EBITDA margins. Beyond its financial contribution, Intellitots serves as a strategic community-level touchpoint that strengthens brand trust, enables early engagement with young families, and acts as a meaningful customer acquisition channel for the broader FirstCry ecosystem. Our long-term ambition of building a network of 1,000 preschools across India remains a key strategic objective and supports our vision of deepening neighbourhood-level engagement across the country.
Key Capabilities
Data-Driven Customer Insights and Technology
Our technology platform serves as the backbone of our multi-channel operations, enabling a personalised, lifecycle-driven engagement experience for Millions of parents across India and the GCC. The FirstCry app (India + Middle East), with 193 Million downloads as of March 31, 2026, delivers hyper-personalised experiences customised based on child age, gender, and purchase history, ensuring that each parent receives the most relevant content, products, and promotions at every stage of the parenting journey. During FY 2025-26, we deepened our investments in AI-driven personalisation, intelligent sorting frameworks, and data-powered marketing efficiency, with the objective of improving returns on marketing spend as delivery experiences improved and consumer sentiment gradually normalised. Our proprietary PLM system governs every stage of the home brand production process, enabling quality control, faster time-to-market, and continuous product innovation across the BabyHug, Pine Kids,
CuteWalk, and Babyoye portfolios.
Integrated Supply Chain and Manufacturing Backbone
Our supply chain, spanning 84 warehouses and stockists as of March 31, 2026, a network of more than 800 contract manufacturers, and three in-house diaper manufacturing subsidiaries, provides the physical infrastructure required to make a wide and diverse range of childcare products accessible to parents across India. The commissioning of the proprietary RocketBees delivery network during FY 2025-26 added a new strategic capability layer. For the first time, we now control a significant and growing portion of our own last-mile delivery network, enabling direct management of the customer delivery experience, improving delivery turnaround times, reducing return-to-origin rates, and creating the foundational infrastructure needed to scale FirstCry Qwik into a full-capability quick-delivery proposition.
Core Strategies
| 1 Investing in Brand, Technology, and Membership to Drive Customer Acquisition and Retention: | 4 Enhancing Supply Chain and Delivery Capabilities: |
| Our customer relationship extends well beyond the point of transaction. We continue to invest in brand-building through responsible and culturally resonant marketing, in technology that personalises the shopping experience at scale, and in community and membership programmes, including the FirstCry Club and the hospital gift hamper initiative, which create engagement and loyalty across the full parenting lifecycle. These investments have driven consistent improvements in both customer acquisition and retention metrics and will continue to be scaled as delivery experience enhancements improve the yield from incremental marketing spend. | FY 2025 26 marked a turning point in our supply chain evolution. The RocketBees initiative which is a proprietary, asset-light, technology- enabled delivery network has improved delivery turnaround times and service metrics in covered markets. Our strategy is to continue scaling this network aggressively while further strengthening the infrastructure architecture through the introduction of Qwik as a quick-delivery layer. Together with Qwik, these capabilities involve some near-term front-loading of logistics costs as individual city networks scale; however, we expect unit economics to improve as shipment density and network utilisation mature. |
| 2 Building a Superior Multi-Channel Retail Network: | 5 Expanding Internationally with Discipline and Sustainability: |
| The strength of our model lies in the seamless integration of our online and offline channels, creating a customer experience that neither channel alone can deliver. Our strategy for FY 2026-27 and beyond centres on three reinforcing investments: expanding the COCO store network, scaling RocketBees to cover a majority of online shipments, and launching Qwik as a competitive quick-delivery proposition. Collectively, these initiatives are designed to deliver the most comprehensive, trusted, and convenient childcare retail experience for Indian parents. | Our International Business strategy is grounded in a clear order of priorities: achieving sustainable unit economics through home brand penetration, category mix optimisation, and customer quality improvement, followed by investments in marketing and growth once the economic foundation is firmly established. The opening of the first Riyadh store in FY 2025-26 signals the beginning of the omni-channel evolution of our International Business, a strategy expected to accelerate customer acquisition and brand building across GCC markets. |
| 3 Growing and Diversifying Home Brands: | 6 Scaling GlobalBees Portfolio with Profitable Organic Growth: |
| Home brands represent the most powerful and sustainable source of differentiation and margin advantage available to us. Our strategy is to continuously expand the depth, breadth, and innovation within our home brand portfolio, guided by customer behaviour data, market gap analysis, and our in-house product development team, while maintaining the premium quality and trust that define the BabyHug, Pine Kids, CuteWalk, and Babyoye brands. | GlobalBees\u2019 strategy is centred on deepening its leadership in selected core categories through brand execution excellence, product quality, and marketplace presence, while completing the portfolio rationalisation of non-core brands in the early part of FY 2026-27 to fully unlock the profitability potential of the core business. The goal is to build a portfolio of category-leading D2C brands that generate strong, sustainable margins and are well-positioned for evaluating strategic options for long-term value creation. |
Opportunities
| GST Rationalisation as a Multi-Year Structural Tailwind | Premiumisation and Home Brand Expansion |
| The sweeping GST reform of FY 2025-26, which moved approximately one-third of the consumer product portfolio into the lower 5% tax bracket, has created a durable competitive advantage for organised, branded childcare retailers. By improving affordability and narrowing the price gap with unorganised alternatives, this reform is expected to accelerate market formalisation and drive sustained volume growth for organised players over the coming years. | India\u2019s Millennial and Gen Z parenting cohort is demonstrating a consistent willingness to pay premium prices for quality, safety-certified, and trusted products. Our home brand portfolio, which spans value to premium price points, is well- positioned to capture this premiumisation trend across categories, driving both revenue growth and structural margin improvement. |
| Enhancing the Delivery Experience through RocketBees and Qwik | Technology and AI-Driven Customer Experience Enhancement |
| The investments made in FY 2025-26 to build RocketBees and pilot FirstCry Qwik are strengthening our delivery capabilities in the speciality childcare retail segment. These initiatives are increasingly relevant as consumer expectations around speed, convenience and reliability continue to evolve, influenced in part by the growth of quick commerce. Markets served by RocketBees have demonstrated encouraging growth trends, reinforcing our confidence in the opportunity to progressively scale these capabilities. | The adoption of AI and machine learning across product discovery, personalisation, inventory management, and logistics optimisation offers significant potential to enhance the efficiency and effectiveness of the FirstCry platform. According to industry estimates, Generative AI tools are expected to improve productivity across retail operations by 35-37% by 2030, creating a favourable tailwind that organised, technology-enabled retailers are well- positioned to capture. |
| Penetration into India\u2019s Underpenetrated Tier II and Tier III Markets | GlobalBees Core Category Growth and Value Crystallisation |
| With Tier II and Tier III cities now accounting for over 60% of India\u2019s e-commerce transactions and expected to add approximately 100 Million new consumers to branded and organised retail by 2030, the opportunity for us to deepen our presence in these markets through both our expanding offline store network and growing online delivery coverage is substantial and well-timed. | The completion of the GlobalBees brand portfolio rationalisation in the early part of FY 2026\u201327 is expected to unlock the full profitability potential of the core category portfolio and create a cleaner, more investable business profile. We will continue to evaluate strategic options for GlobalBees in a manner consistent with long-term value creation and applicable regulatory requirements. |
| Deepening Customer Lifetime Value through Lifecycle Engagement | |
| Our model, which engages parents from pregnancy through approximately the first 12 years of a child\u2019s life and increasingly extends engagement through the Intellitots preschool network, creates customer relationships with exceptional lifetime value potential. As the platform deepens its personalisation capabilities and expands its community ecosystem, the opportunity to increase wallet share and reduce customer acquisition costs over time represents a significant and compounding value creation lever. |
Opportunities and Threats
Muted Consumer Sentiment and Discretionary Demand Cyclicality
Indias retail sector experienced a period of relatively subdued urban consumer sentiment during FY 2025-26, with discretionary spending under pressure from macroeconomic uncertainty and geopolitical disruptions. While the non-discretionary nature of a significant portion of the childcare product portfolio provides some insulation, overall basket sizes, order frequencies, and premium product adoption can be affected during periods of consumer caution.
Heightened Competitive Intensity in the Diapering Category
The diapering category which constitutes ~15% of the India multi-channel GMV, experienced a period of elevated promotional and discounting activity from large horizontal e-commerce platforms starting from Q3 FY 2025-26, creating a near-term pressure on margins for organised specialty retailers. However, our non-diapering portfolio, contributing ~85% of the GMV remains robust and continues to perform well. While underlying volume demand fundamentals in this non-discretionary category remain intact, such episodes of platform-driven pricing aggression are difficult to anticipate and may recur.
Last-Mile Logistics Ecosystem Volatility
Consolidation and structural shifts within Indias third-party last-mile logistics ecosystem, driven by rising demand from large, volume-oriented e-commerce platforms, created customer experience challenges for organised retailers dependent on these networks during FY 2025-26. Our strategic response through RocketBees and FirstCry Qwik directly addresses this structural vulnerability; however, the transition period carries execution risks and near-term cost implications.
Rising Quick Commerce Competition and Consumer Delivery Expectation Reset
The rapid expansion of quick commerce, now operating across 80+ cities with aggressive growth plans, has materially reset consumer expectations around delivery speed across retail formats. While our category assortment overlap with quick commerce players remains relatively limited, this shift in customer expectations creates a need for sustained investment in delivery infrastructure, which may result in near-term cost headwinds before the scale benefits of RocketBees and FirstCry Qwik are fully realised.
International Market Competitive Dynamics
The UAE and KSA e-commerce markets are characterised by well-capitalised horizontal platforms with aggressive promotional postures. Maintaining sustainable growth without participating in margin-dilutive pricing cycles, while building home brand share and customer quality in a highly competitive environment, requires significantmanagement discipline and long-term strategic patience.
Inflationary Pressures and Input Cost Volatility
While inflation moderated significantly in FY 2025-26, structural volatility in input costs, including raw materials for home brand manufacturing and freight and logistics costs, can compress margins and require active supply chain management and pricing discipline.
Competition from the Unorganised Sector
Despite the GST rationalisations positive effect on the competitive dynamics between organised and unorganised retail, the unorganised sector continues to dominate a large share of Indias childcare market, particularly in smaller cities and in price-sensitive segments. The breadth, local knowledge, and price flexibility of unorganised players remain meaningful competitive factors.
Demographic Shifts and Birth Rate Moderation
A gradual moderation in Indias birth rate, driven by urbanisation, higher female education levels, and the trend towards later and smaller families, could, over the long term, affect the size of the core 0-12-year demographic. While the per-child spend increase is expected to more than offset volume headwinds over the medium term, the demographic trajectory is a factor to monitor over longer planning horizons.
Marketplace Policy and Platform Dependency Risk
Changes in marketplace policies, such as Flipkarts revised revenue recognition framework in FY 2025-26, can create unexpected revenue and margin impacts for D2C brands and retailers with concentrated platform exposure. Diversification across platforms, and the continued growth of own-channel capabilities, remains a key strategic imperative to mitigate this risk.
Geopolitical Risk
Geopolitical instability and conflict escalations across key international growth markets, particularly in the Middle East (UAE and KSA), pose direct operational risks to overseas store networks and customer demand.
Furthermore, global trade disruptions, shipping route bottlenecks, or currency fluctuations can inflate freight costs and cause inventory delays for imported products and contract manufacturing inputs.
Financial Overview (on a Consolidated Basis)
FY 2025-26 marked a year of meaningful financial progress for Brainbees Solutions Limited at the consolidated level. Against the backdrop of a challenging external operating environment, we delivered improvements across key profitability metrics, demonstrating that the structural economics of our multi-channel childcare model continue to mature in a sustained and credible manner.
Consolidated revenue from operations recorded year-on-year growth across all four business segments and grew by 12% to Rs. 85,479 Million. Consolidated Adjusted EBITDA increased by 24% year-on-year to Rs. 4,860 Million despite gross-margin pressure in the India Multi-Channel Business during the second half. The improvement reflected operating leverage in the core business, a significant reduction in International Business losses, stronger profitability at GlobalBees and continued growth in the preschool.
The consolidated business was Free Cash Flow # positive for FY 2025-26, marking the first full-year positive Free Cash Flow # outcome for the Group. Together with the 24% increase in Adjusted EBITDA and 49% growth in Cash Profit After Tax, this reflects improving cash conversion and greater financial flexibility.
The year included different operating dynamics across our businesses. India Multi-Channel Revenue increased by 9% to Rs. 57,533 Million and Adjusted EBITDA was Rs. 5,051 Million, representing a margin of 8.8%. During the second half, gross margin was affected by heightened competitive intensity in diapering and, in Q4, by rupee depreciation and higher crude-linked raw-material costs in the manufacturing business. These pressures were partly offset by operating leverage and cost efficiencies, while the business remained Free Cash Flow # positive for FY 2025-26.
The International Business continued to improve its profitability profile, with Revenue increasing by 10% Rs. 9,474 Million and Adjusted EBITDA loss reducing by 35% to Rs. 907 Million. GlobalBees reported 20% Revenue growth to Rs. 18,943 Million and Adjusted EBITDA of Rs. 559 Million; its core categories grew 28% and generated Rs. 919 Million of Adjusted EBITDA post corporate expenses. The Others segment, primarily the preschool business, delivered Revenue of Rs. 472 Million and Adjusted EBITDA of Rs. 125 Million, representing a margin of 27%.
The table below sets out the consolidated segment revenue performance, with FY 2024-25 actuals as the prior-year comparative.
| Particulars | FY 2025-26 (Rs. Million) | FY 2024-25 (Rs. Million) | Y-o-Y Change | % of FY 2025-26 |
| Total | ||||
| India Multi-Channel Business | 57,533.35 | 52,784.90 | 9% | 67% |
| International Business | 9,474.18 | 8,585.52 | 10% | 11% |
| GlobalBees Brands | 18,943.48 | 15,777.02 | 20% | 22% |
| Others (Preschool) | 471.99 | 425.03 | 11% | 1% |
| Inter-Company Adjustments | (943.56) | (976.33) | - | - |
| Total Revenue from Operations | 85,479.44 | 76,596.14 | 12% | 100% |
Profit and Loss Statement
(in Rs. Million)
| Particulars | FY 2025-26 | FY 2024-25 |
| Revenue from Operations | 85,479.44 | 76,596.14 |
| Growth (%) | 11.6% | 18.2% |
| Gross Margin | 30,954.90 | 28,610.41 |
| Gross Margin (%) | 36.2% | 37.4% |
| Employee Expenses | 7,936.01 | 7,284.38 |
| Total Operating Expenditure | 82,855.82 | 74,296.40 |
| Adjusted EBITDA | 4,859.75 | 3,934.54 |
| Adjusted EBITDA Margin (%) | 5.7% | 5.1% |
| EBITDA | 2,623.62 | 2,299.74 |
| EBITDA Margin (%) | 3.1% | 3.0% |
| Finance Cost | 1,556.95 | 1,583.26 |
| Depreciation | 4,071.94 | 4,045.67 |
| Other Income | 1,843.09 | 1,504.77 |
| Exceptional Items (Net) | 500.09 | 495.53 |
| (Loss) Before tax | (1,662.27) | (2,319.95) |
| Total Tax Expense | (374.31) | (328.12) |
| (Loss) After Tax | (2,036.58) | (2,648.07) |
Key Ratios
| Particulars | Units | FY 2025-26 | FY 2024-25 | % Change |
| Basic EPS | Rs. | (2.9) | (4.1) | 29.3% |
| EBITDA Margins | % | 3.1 | 3.0 | 10 bps |
| Gross Profit Margin | % | 36.2 | 37.4 | (120) bps |
| PAT Margins | % | (2.3) | (3.4) | 110 bps |
| Inventory Turnover Ratio | Times | 4.3 | 3.6 | 19.4% |
| Trade Receivables Turnover Ratio | Times | 23.2 | 27.1 | (14.4%) |
| Trade Payables Turnover Ratio | Times | 8.4 | 8.3 | 1.2% |
| Return on Net Worth | % | (2.9) | (4.0) | 110 bps |
| Return on Capital Employed | % | (0.2) | (1.3) | 110 bps |
| Current Ratio | Times | 2.1 | 2.2 | (2.3%) |
| Debt-Equity Ratio | Times | 0.1 | 0.1 | 6% |
Human Resources
Our people, affectionately known as Bee-zers, are the most important contributors to our continued growth and to the quality of experiences we deliver to Millions of parents across India and the GCC. Our human capital philosophy is anchored in three principles: building a high-performance, purpose- driven culture; continuously investing in the skills and growth of every team member; and fostering an inclusive, empathetic, and open workplace where diverse perspectives are genuinely valued and celebrated.
FY 2025-26 saw us continue to invest in talent across technology, logistics and supply chain, retail operations, marketing, and brand development functions, in line with the expansion of the business across segments and geographies. The launch of RocketBees and the expansion of the offline store network created new categories of operational capability requirements, while increasing investments in AI and personalisation technologies necessitated the continued strengthening of our engineering and data science talent base.
Our commitment to learning and development, internal mobility, and leadership development programmes continued to evolve, ensuring that team members have the tools and opportunities needed to grow their careers in step with our expansion.
As of March 31, 2026, our total permanent workforce stood at 3,296 employees.
Risk Management
Our approach to risk management remains proactive, comprehensive, and deeply embedded in our governance framework and day-to-day operations. We systematically identify risks across strategic, operational, financial, reputational, and regulatory dimensions, assess their likelihood and potential impact, and implement defined policies, robust internal controls, and continuous monitoring mechanisms to mitigate them.
Our Board of Directors oversees the overall risk management framework, while senior management actively designs and executes targeted mitigation strategies across the organisation. Through our experience operating across diverse business segments, including multi-channel retail, international e-commerce,
D2C brand management, and early education, we have built a strong risk-aware culture that enables us to anticipate emerging challenges and respond to them with speed, agility, and discipline in an increasingly dynamic and competitive environment.
Competitive Landscape Risk
Risk Description: Intensifying competition from horizontal e-commerce platforms, quick-commerce players, offline retailers, and new entrants in the baby, kids, and mother-care segments may adversely impact the Companys ability to differentiate its offerings and sustain its value proposition and private-label strength. Failure to maintain a competitive position could result in customer churn, reduced pricing power, increased customer acquisition and retention costs, pressure on gross margins, and consequently, an adverse impact on profitability and market share.
Mitigation Strategy: Management continuously monitors competitor actions, pricing trends, customer behaviour and emerging market trends to enable timely business decisions. The Company is strengthening its quick-commerce capabilities through Qwik, leveraging its store network and logistics infrastructure. Digital and offline marketing initiatives, personalised customer engagement and retention programs are undertaken to strengthen customer loyalty. Product assortment and private-label offerings are continuously enhanced to maintain differentiation. Strategic partnerships and acquisitions are evaluated to strengthen capabilities, expand offerings and sustain competitive positioning.
Cyber Security & Data Protection Risk
| Risk Description: Cybersecurity and data security risks arising from phishing, malware, insider actions, third-party vulnerabilities, system misconfigurations, inadequate monitoring, and other external or uncontrollable factors may result in unauthorised access, disclosure, alteration, loss, or destruction of sensitive data. Such incidents could lead to operational disruption, financial losses, regulatory and compliance exposure, reputational damage, and potential interruption to business operations and continuity. | Mitigation Strategy: Cybersecurity risks are managed through periodic vulnerability assessments, patching, audits and VAPT reviews. Continuous threat monitoring enables timely identification and response to potential security incidents. Regular employee awareness initiatives, phishing alerts and security training are conducted to strengthen user-level controls. Cloud environments are maintained through defined AWS security baselines and access controls. Zero-standing-privilege controls and automated employee exit workflows help prevent unauthorised access, supported by incident response and disaster recovery arrangements. |
Vendor Ecosystem & Macroeconomic Factors Risk
| Risk Description: Volatility in raw material prices, foreign exchange rates, freight costs, geopolitical conditions, and broader macroeconomic factors, coupled with vendor concentration and supplier dependency, may increase landed costs and disrupt supply timelines. Such factors may particularly impact import-dependent categories and third-party consumables, resulting in stock- outs and reduced product availability across stores and e-commerce channels. The inability to pass on increased costs due to competitive intensity and price sensitivity may further constrain pricing flexibility, compress gross margins, impact sales and customer experience, and adversely affect overall profitability. | Mitigation Strategy: Vendor risks are managed through structured onboarding, due diligence, factory audits and statutory and banking verification. Supplier diversification, alternate vendor development and geographic spread reduce dependency on individual suppliers. Buffer inventory is maintained for critical materials to mitigate supply disruptions. Vendor performance, commodity prices, freight costs and foreign exchange movements are regularly monitored to assess cost and margin impact. Periodic stress testing and appropriate pricing/procurement actions are undertaken to manage margin pressure and maintain product availability. |
Attrition and Succession Planning Risk
| Risk Description: High employee attrition, limited talent retention, inadequate succession planning, and over-dependence on key personnel may result in operational disruptions, productivity loss, inconsistent service quality, and leadership gaps. Loss of critical knowledge and increased hiring and training costs may further impact business continuity and organisational performance. | Mitigation Strategy: Employee attrition is monitored across frontline, management and leadership levels through regular reviews, employee surveys and leadership interactions. Engagement initiatives are undertaken to address employee concerns and improve retention. Critical positions are identified and supported through structured succession plans, designated backups and knowledge-transfer mechanisms. Frontline roles are supported by readily available talent and structured training to ensure quick replacement where required. Succession plans are periodically reviewed to ensure business continuity and adequate leadership pipeline. |
Product Quality and Safety Risk
| Risk Description: Inadequate product quality controls or non-compliance with applicable BIS standards, certification, and regulatory requirements may result in defective or unsafe products reaching customers. Risks may arise from third-party manufacturing deficiencies, inadequate testing or dispatch controls, traceability gaps, delayed detection, or changes in applicable standards. Such failures could lead to customer complaints, product recalls, regulatory penalties, loss or suspension of certifications, financial losses, and reputational damage. | Mitigation Strategy: Product quality and regulatory compliance are supported through defined quality checks, certification controls and vendor accountability mechanisms. BIS certification requirements are validated before product listing, with periodic system-based checks against applicable government databases. Home-brand products are subject to comprehensive quality inspections and identified categories undergo batch-level testing. Customer ratings, complaints and return trends are monitored to identify quality concerns and initiate corrective action. Vendor SLAs, traceability requirements and indemnity provisions further strengthen accountability for product quality and regulatory compliance. |
Legal and Compliance Risk
| Risk Description: Non-compliance with applicable laws, contractual obligations, and evolving regulatory requirements, including ESG, data protection, labour, and statutory reporting obligations, may result from inadequate monitoring, delayed or inaccurate filings, or gaps in compliance controls. Exposure to litigation, contractual disputes, and unauthorised data access may further increase the risk. Such failures could lead to regulatory penalties, civil or criminal liability, increased compliance costs, operational disruption, loss of investor and customer confidence, and reputational damage to the Company and its supply chain partners. | Mitigation Strategy: A structured compliance framework with defined responsibilities, maker- checker controls and regulatory monitoring is maintained to support timely compliance. Periodic internal and external reviews are undertaken to identify compliance gaps and strengthen regulatory readiness. ESG/BRSR reporting is supported through standardised trackers, internal validation and cross- functional review. The Compliance Management Tool is being further operationalised to improve centralised monitoring and accountability. DPDP Act compliance assessment and Contract Management Tool implementation are also being undertaken to strengthen data protection and contractual compliance. |
Supply Chain and Logistics Dependency Risk
| Risk Description: Vulnerabilities across the end- to-end logistics network, including last-mile e-commerce delivery, warehouse operations, replenishment of offline stores, and clearance of imported merchandise, may result in delivery failures, transit damages, fulfilment delays, and stock-outs. Cost escalation, operational dependencies, and inadequate contractual safeguards may further increase supply chain disruption risks. Such disruptions could adversely impact supply chain efficiency, customer experience, revenue, brand reputation, and overall business continuity. | Mitigation Strategy: Supply chain resilience is strengthened through multiple logistics partners, in- house capabilities and backup vendors to reduce dependency on individual service providers. Defined SLAs, delivery KPIs and periodic vendor reviews are used to monitor service performance. Standardised packaging, transit insurance, shipment tracking and penalty mechanisms help mitigate transit losses and damages. Pin-code-level TAT monitoring and API integrations provide visibility over shipments and enable timely corrective action. Formal contracts with defined pricing, service standards and performance obligations further support continuity and cost control. |
Customer Satisfaction and Market Preference Risk
| Risk Description: Customer experience risks arising from inadequate service quality, ineffective support mechanisms, inaccurate product information, negative online ratings, and inconsistent last- mile interactions, coupled with evolving customer preferences and spending patterns, may adversely impact customer satisfaction and loyalty. Failure to effectively address these factors could result in reduced demand, customer attrition, loss of revenue and market share, and reputational damage to the Company. | Mitigation Strategy: Customer experience is monitored through mystery audits, customer feedback, online ratings and service-level performance indicators. Identified gaps are addressed through defined corrective action plans and periodic impact assessment. Structured hiring, employee training and service-readiness assessments help ensure consistent customer interactions across channels. Product assortment and home-brand offerings are continuously enhanced in line with changing customer preferences. Multi- channel initiatives and reputation management measures are undertaken to strengthen customer loyalty, satisfaction and retention. |
Inventory & Warehouse Management Risk
| Risk Description: Inadequate inventory planning, demand forecasting, and warehouse safety and security controls may result in overstocking, stock-outs, pilferage, inventory obsolescence, unauthorised stock movement, and asset loss. Weak physical security and fire safety controls may further lead to accidents, operational disruptions, regulatory non-compliance, and financial losses. These risks could result in blocked working capital, increased operating costs, lost sales, reduced customer satisfaction, and adverse impact on business continuity. | Mitigation Strategy: Inventory planning is supported through system-driven analysis of demand, stock levels, purchase orders, lead times and seasonal trends. Automated replenishment mechanisms help maintain appropriate stock levels across stores and categories. Inventory accuracy is strengthened through cycle counts, periodic physical verification, reconciliation and timely resolution of variances. Warehouse safety is supported through fire detection systems, emergency procedures, mock drills, safety training and maintenance of critical infrastructure. CCTV surveillance, access controls and security personnel further mitigate risks of pilferage and unauthorised stock movement. |
Store Performance & Expansion Risk
| Risk Description: Store underperformance, ineffective network expansion and clustering strategies, and external disruptions may adversely impact customer demand, supply chain efficiency, and workforce availability. These factors may result in revenue loss, underutilisation of store infrastructure, operational inefficiencies, increased costs, and reduced employee morale, thereby affecting overall business performance and growth. | Mitigation Strategy: Store performance is monitored through dashboards and analytics to identify underperformance and enable timely corrective action. Dedicated teams and field management provide accountability for store operations and cluster-level performance. Customer behaviour, sales trends and feedback are analysed to optimise assortment, pricing and promotional strategies. New store locations are evaluated through data-driven site selection, demand analysis and geographic considerations. Periodic network optimisation and omnichannel initiatives are undertaken to improve store productivity and support sustainable expansion. |
Product Innovation, Digital & AI, Growth Risk
| Risk Description: Insufficient competitor monitoring, limited use of data-driven insights and delays in product, personalization and AI-driven initiatives may restrict innovation and differentiation. Gaps in implementation, integration, testing, data quality and security could result in system inefficiencies and suboptimal customer experience. Inadequate demand analysis and operational feasibility assessment may lead to expansion into low-demand or unsuitable locations, inefficient resource utilization and delivery challenges. Further, inadequate demand assessment, operational readiness and dependence on hyperlocal logistics may impact the scalability and sustainability of the Qwik model. | Mitigation Strategy: Management continuously monitors customer, market and competitor trends to identify opportunities for product, digital and technology-led innovation. Personalisation, behavioural insights, product mapping and recommendation capabilities are used to enhance customer experience. AI-driven solutions and technology enhancements are progressively deployed to improve platform performance and operational efficiency. Quick-commerce expansion is guided by order density and demand analytics to ensure economically viable deployment. Continuous innovation and technology adoption support customer engagement, competitive differentiation and scalable growth. |
Climate & Disaster Risk
| Risk Description: External events such as natural disasters, pandemics, geopolitical tensions, acts of war, and other unforeseen circumstances may disrupt supply chains, logistics networks, procurement processes, critical infrastructure, and workforce availability. Regulatory restrictions, trade limitations, and economic uncertainty arising from such events may further affect operations and consumer demand. These disruptions could result in operational inefficiencies, increased costs, revenue loss, adverse financial impact, and challenges to overall business continuity. | Mitigation Strategy: Business continuity is supported through multiple logistics partners, alternate routes, supplier diversification, alternate sourcing and buffer inventory. Disaster recovery arrangements, insurance, alternate warehousing and contingency plans help maintain operations during unforeseen disruptions. Workforce resilience is supported through backup staffing, cross-training and defined safety measures. Flexible inventory planning, channel diversification and cost controls help manage demand and financial volatility. The Company is further strengthening its BCP framework, geographic diversification, demand forecasting and proactive monitoring of geopolitical and regulatory developments. |
Internal Control Systems
A robust internal control environment forms the foundation of our governance framework, enabling us to manage operational and financial risks, ensure the integrity and reliability of financial reporting, safeguard assets across a complex multi-segment and multi-geography business, and maintain full compliance with applicable laws and regulatory requirements. As our business has expanded in scale and complexity, spanning four distinct business segments, international operations across the UAE and KSA, and an expanding physical and digital retail footprint, we have continuously evolved our internal control framework by embedding automation, data-driven monitoring, and continuous improvement as core operating principles.
Our internal financial control system ensures that all transactions are appropriately authorised, accurately recorded, and reported on a timely basis, enabling the preparation of reliable financial information in accordance with applicable accounting standards and regulatory requirements.
Wherever possible, we automate and integrate key controls into day-to-day business processes, reducing manual intervention and minimising the risk of error. Our ERP infrastructure provides a real-time foundation for financial monitoring and control across all business segments.
We operate a structured three-tier control assurance model:
| Management-level Control Assessment and Continuous Monitoring: | Independent Oversight through the Governance, Risk and Compliance Function: | Independent Testing and Audit Assurance: |
| Operational and financial teams conduct ongoing control assessments and monitoring activities, supported by defined escalation protocols for exceptions and deviations. | Our Governance, Risk and Compliance (GRC) function continuously evaluates control design and operating effectiveness and regularly reports findings to senior management and the Audit Committee. | Our appointed Internal Audit firm conducts audits under an annual risk- based Internal Audit plan approved by the Audit Committee, while our Statutory Auditors and Secretarial Auditors provide additional independent assurance. |
The Audit Committee of the Board of Directors actively oversees our internal control framework by reviewing Internal Audit findings, management responses, and remediation progress during each meeting. Our Statutory Auditors are issuing an unqualified opinion on our internal financial control systems for FY 2025-26, confirming the absence of material weaknesses or significant gaps in design or operating effectiveness.
As our business continues to grow and evolve, we remain focused on strengthening our control environment, incorporating learnings from operational expansion, the increasing scale of our International Business, new initiatives such as RocketBees, and evolving regulatory requirements across the jurisdictions in which we operate.
Cautionary Statement
This report contains statements that may include forward-looking remarks within the meaning of applicable Securities Laws and Regulations. It is important to note that numerous factors could cause the actual results, performances, or achievements of the Company to be materially different from any future results, performances, or achievements. Significant factors that could impact the Companys operations include changes in domestic and international economic conditions, alterations in Government regulations, changes to the tax regime, modifications to other tatutes, among others.
Brainbees Solutions Limited
Industry Terms
| Term | Description |
| Gross Merchandise Value (GMV) | Gross Merchandise Value (GMV) includes the monetary value of orders, inclusive of taxes and before discounts, if any, across our website, mobile application, and FirstCry and BabyHug modern stores, including those operated by Digital Age and franchisees. GMV is calculated net of order cancellations, gross of franchisee commissions, net of shipping and cash-on-delivery charges, and prior to product returns. |
| Average Order Value (AOV) | Average Order Value (AOV) represents the GMV generated across the FirstCry website, mobile application, FirstCry modern stores, and BabyHug modern stores divided by the number of orders considered for such GMV. |
| Adjusted EBITDA | Adjusted earnings before interest, tax, depreciation and amortisation is calculated as the restated profit for the period or year plus tax expense, finance cost, depreciation and amortisation expenses less other income, exceptional items (net), plus employee share- based payment expenses, deal-related cost, salaries, wages, bonus and other allowances accounted as per para B55 of Ind AS 103. |
| Annual Unique Transacting Customer | Unique users that made at least one purchase on the FirstCry platform during the preceding 12-month period on the reporting date. Unique customers/visitors are identified as unique by their mobile number basis which duplication across website, mobile application and stores is removed. |
| Orders | Total orders across website, mobile application, FirstCry modern stores and BabyHug modern stores including those operated by Digital Age and franchisees prior to product returns. |
| Number of Brands | Number of active brands as of the date of respective period end listed across the FirstCry website, mobile application and FirstCry modern stores and BabyHug modern stores, including those operated by Digital Age. |
| Number of | Number of SKUs as of the date of respective period end date across the FirstCry website, mobile |
| SKUs Warehouses and Stockists Segment | application and FirstCry and BabyHug modern stores, including those operated by Digital Age. Number of warehouses and stockists where the Company stores its inventory. |
| Margin | Segment margin is calculated by dividing segment results by segment revenue from operations. |
| RocketBees | Our proprietary asset-light last-mile delivery initiative, built on a technology stack developed entirely by FirstCry and operated through dedicated regional logistics partners providing exclusive fulfilment for FirstCry shipments. RocketBees is designed to deliver superior delivery turnaround times and customer experience relative to third-party logistics providers and forms the delivery infrastructure foundation for FirstCry Qwik. |
| Qwik | Our quick-delivery initiative offering a promised few-hours delivery window across our full product assortment, including apparel, baby gear, consumables, toys, and all other categories. Qwik leverages COCO stores, stockist networks, and dark stores as local fulfilment nodes, and is built on the RocketBees delivery infrastructure. |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2026, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
