FirstCry Reports Revenue Growth Amid Margin Pressures
Indian e-commerce firm FirstCry reported a 13.1% year-on-year revenue increase for Q1 FY27, reaching ₹2,106.2 Cr. However, profitability is being squeezed by rising costs and competition, particularly in its core diaper business.
FirstCry, the India-based children's apparel and multi-channel e-commerce platform, has announced a 13.1% year-on-year increase in consolidated revenue for the first quarter of fiscal year 2027, reaching ₹2,106.2 crore. Net losses for the period narrowed by nearly 34% to ₹44 crore from ₹66.5 crore in the prior year.
Founder Supam Maheshwari stated this marks the company's strongest consolidated revenue expansion in five years. The previous fiscal year closed with total sales of ₹8,548 crore and a consolidated net loss of approximately ₹204 crore.
While overall revenue climbed, the company's structure shows varying performance across segments. GlobalBees, its D2C brand aggregator, contributed ₹1,894.3 crore in FY26, but together with international operations in UAE and Saudi Arabia, these ventures incurred segment losses of ₹148.5 crore.
The core India multi-channel business, which accounts for 70% of revenue, saw a 17.7% increase to ₹1,456 crore in Q1 FY27. However, its gross margin declined to 35.2% from 37.8% a year earlier. The diaper segment, a key customer acquisition channel, faces pressure from quick commerce and private label discounts, impacting overall margins.
FirstCry is addressing these challenges by strengthening its private labels, expanding its in-house logistics network (RocketBees), piloting ultra-fast delivery (FC Qwik), and growing its physical retail presence. The company anticipates some cost relief from Q3 FY27 but expects competition in the diaper segment to persist.