Financial Performance Highlights

Consolidated Business:

  • Q2 FY27 Revenue: ₹23,958 million, representing 14.1% YoY growth (strongest in six quarters)
  • Q2 FY27 Net Loss: ₹126 million, narrowed by 75.1% YoY from ₹505 million loss in Q2 FY26
  • H1 FY27 Revenue: ₹45,021 million compared to ₹39,616 million in H1 FY26
  • Adjusted EBITDA Margin: 4.9% in Q2 FY27 (5.8% in Q2 FY26)

India Multi-channel Business:

  • Q2 FY27 Revenue: ₹16,379 million, 18.6% YoY growth (strongest in eight quarters)
  • Q2 FY27 Adjusted EBITDA: ₹1,122 million (6.9% margin), improved from 5.7% in Q1 FY27 but below 9.1% in Q2 FY26
  • Offline GMV grew 13% YoY in Q2 FY27 and 14% in H1 FY27
  • Online revenue (net of discounts, returns and taxes) grew 10%+ YoY in Q2 FY27
  • Gross margin improved by approximately 100 bps in Q2 FY27 compared to Q3 FY26

International Business (UAE and KSA):

  • Q2 FY27 Revenue: ₹2,493 million, 5.8% YoY growth
  • Q2 FY27 Adjusted EBITDA Loss: ₹159 million (-6.4% margin), improved from -8.0% in Q2 FY26
  • Gross Margin improved to 28.5% in Q2 FY27 from 26.3% in Q2 FY26

Globalbees Business:

  • Q2 FY27 Revenue: ₹5,306 million, 7.7% YoY growth
  • Q2 FY27 Adjusted EBITDA: ₹192 million (3.6% margin), grew 83.5% YoY

Others Segment (Preschools):

  • Expanded from 432 preschools in 190 cities (Sep'25) to 512 preschools in 218 cities (Sep'26)
  • Student enrollment increased from 22,742 (Sep'25) to 28,785 (Sep'26)
  • Q2 FY27 Revenue: ₹133 million with 40% Adjusted EBITDA margin

Operational Metrics

  • Total modern stores: 1,188 as of September 2026 (529 COCO stores)
  • Annual Unique Transacting Customers: 12.1 million parents over last 12 months
  • Home brands account for over 58% of India Multi-channel GMV
  • Mobile app downloads: 193 million as of March 31, 2026
  • RocketBees: Expanded to cover 60%+ of online shipments with 90%+ on-time delivery
  • FirstCry Qwik: Expanded from 5 cities (~60,000 shipments in Mar'26) to 16 cities (~250,000 shipments in Sep'26)

Strategic Initiatives

RocketBees Delivery Network:

  • Improved online transaction frequency cohorts in serviced cities by 10%+
  • Achieved 20% faster turnaround time and 50% fewer return-to-origin shipments
  • Reduced delivery-related complaints by 60%

FirstCry Qwik:

  • Offers 1-3 hour delivery in selected high-density catchments
  • Scaled from 3 cities (pilot) to 16 cities within three quarters

Offline Assortment Changes:

  • Sharpened assortment and product availability
  • Implemented accessible entry prices driving footfalls and conversion

Product Expansion:

  • Expanded Bonfino premium range across children's fashion, gear, toys and school supplies
  • Launched International Online Store with global parenting brands (Carter's, Joie, Dr. Brown's, etc.)
  • AI-powered personalized recommendation engine driving meaningful revenue share

Margin Pressures and Responses

Competitive Intensity in Diapering:

  • Started moderating since mid-Q2 FY27
  • Gross margins improved by approximately 100 bps in Q2 FY27 compared to Q3 FY26

Manufacturing Input Cost Pressure:

  • Rising crude-linked raw material costs (October 2025: $63/barrel vs October 2026: $108.5/barrel)
  • Rupee depreciation impacting costs
  • Initiated pricing actions to pass through cost increases
  • Stabilization in crude prices expected to allow customer pricing to catch up

Working Capital and Inventory

  • Working capital days: 61 days in H1 FY27 (67 days in H1 FY26)
  • Inventory days: 105 days in H1 FY27 (99 days in H1 FY26), impacted by advancement of festivals and 3P Platform sales

ESOP Expenses

  • Expected ESOP charges: ₹1,119 million for FY2027
  • Q2 FY27 ESOP cost: ₹249 million
  • Fully diluted share capitalization: 532.4 million shares (including 10.3 million ESOPs)

Forward-Looking Statements

Management expects growth momentum to continue in online and offline business in subsequent quarters. Priorities include higher sustained growth, improved customer experience, increased purchase frequency, and strengthened profitability.

Website Information

Investor presentation available at: https://www.firstcry.com/investor-relations/