Brainbees Solutions Ltd (NSE: FIRSTCRY) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Unidentified Speaker
Supam Maheshwari — Managing Director & Chief Executive Officer
Gautam Sharma — Group Chief Financial Officer
Vivek Goyal — Chief Business Officer
Abhinav Sharma — Country Head of Middle east business operations
Anuj Jain — Chief executive Officer
Analysts:
Unidentified Participant
Presentation:
operator
Welcome to Brainbee Solutions Limited Q3 and 9 month FY26 earnings call. This is Anish Aroda and I have with me Mr. Supam Manishwari, Managing Director and CEO of the company, Mr. Gautam Sharma Group Chief Financial Officer, Mr. Vivek Goyal, Chief Business Officer of the company, Mr. Abhinav Sharma, Country Head of Middle east business operations and Mr. Anuj Jain, CEO of GlobalBeast. Kindly note that this call is meant for analysts and investors of the company. We wish to highlight that the call is being recorded and by participating in this event you consent to such recording, distribution and publication.
All participants have been muted as for the default mode and participants will be unmuted once we open the Q and A forum for the members to ask questions after the presentation from the management concludes. We’ll be covering the presentation in the beginning of the call and we’ll thereafter open for the Q and A forum. We would like to point out that some of the statements made in today’s call may be forward looking in nature and the disclaimer to this effect has been included in the investor presentation shared with you. With this I request Mr. Sukum Manishwari to take it over.
Supam Maheshwari — Managing Director & Chief Executive Officer
Good evening everyone. Once again welcome to our Q3 performance and nine month performance for FY26. We’ll be covering both quarter three and nine months as well as the segmental performance of all our four business segments. Financial Summary, Business Overview and some other supplementary information is attached in the presentation uploaded. Just straight diving into the Q3 and 9 months. Happy to share that we’ve been pat positive on a console level for the quarter three FY26 adjusted for ESOP cost. Also for the nine months adjusted EBITDA has been increased from 25 year on year basis and we continue to remain cash flow positive for nine months.
FY26 on segmental updates India Multi Channel Business witnessed sequential improvement as he had promised in our earlier calls as well despite relatively muted consumer sentiment. If you look at the right hand side you will notice that we had on quarter one seven and a half percent year on year growth quarter to 7.9% and quarter three has been 8.9% growth and we face certain challenges around supply chain volatility otherwise our growth would have been around 11% for quarter three year on year basis. We have undertaken a lot of initiatives that we have spoken about in the past.
We will speak more during the course of the presentation. We strongly believe that the with those initiatives structurally our growth rate for both online and Offline channels will remain much superior in FY27 as those initiatives would have taken certain scale and size. We continue to remain patent cash flow free cash flow positive in India Multi channel for the nine month FY26 for the international business we witnessed elevated promotional activities led by the two horizontal commerce e commerce players that we have spoken about a few quarters back as well. However, we have continued to remain laser focused on sustainable growth and not participating in those events and maintaining our focus towards reducing our adjusted EBITDA losses which has reduced by 25% year on year basis.
For quarter three FY26 and 36% for the nine month FY26 global bees delivered another strong quarter of organic and profitable growth. Core categories delivered 30% year on year growth in nine months FY26 and a adjusted EBIT of close to 70 crores post corporate expenses. Moving further you will see these are snapshots for our Consol business. Autc grew by 10% and GMV for online offline, Online offline and International business grew by 10% and revenue from operation grew by 12% and adjusted EBITDA console business stands at 6.3% and India multi channel at 10%. Cash profit after tax grew year on year for quarter three and 23% for the nine month performance on the console basis.
AUTC again grew by 10%, revenue from operations grew by 11% over nine months compared to last year nine months and our Consol adjusted EBITDA grew by 25% year on year basis and India multi channel at 9.3 and cash profit for 72% on an equivalent nine month basis. With that I would like to sort of move to the segmental performance and hand over Vivek for talking about our India Multi Channel segmental performance. Vivek.
Vivek Goyal — Chief Business Officer
Hi good evening everyone. I’ll share some key updates about the India Multi Channel business. So as Supam also mentioned that we saw sequential improvement in year on year growth rate for the revenue and this was despite a bit of muted consumer sentiments in Q3 that we witnessed. We also. Which contributes to 85% and continues to perform well. We also witnessed as Supam was mentioning some supply chain volatilities in a few select categories.
Unidentified Speaker
Vivek, we missed last 15:20 seconds if you would. If you don’t mind can you please speak from the point two again?
Vivek Goyal — Chief Business Officer
Sure, sure, sure sure. Am I audible?
Unidentified Speaker
Yeah, yeah.
Vivek Goyal — Chief Business Officer
So.
Vivek Goyal — Chief Business Officer
As I was mentioning that we witnessed some heightened competitive intensity in diapering category during the quarter which led to pressure on growth and margins Our non diapering portfolio which contributes to 85%, about 85% of our GMV remains robust and continues to perform well. We also witnessed as Supam had mentioned, some supply chain volatilities in few select categories which impacted overall growth by 200bps in Quarter 3 FY26. Anish if we can move to the next slide. So we saw about 9% growth in quarter 3 FY26 at a 9 months level we saw about 8% growth and if I talk about adjusted EBITDA and 9 month level we saw growth of about 6% to 395 crores.
Subham, do you want to take this slide?
Supam Maheshwari — Managing Director & Chief Executive Officer
Yeah. So I think I just wanted to give you know the new initiative updates that we had been talking about. Few of them and few new ones. One significant new one that we’ll speak about as in last few quarters we have mentioned that we had, you know had some customer experience issues to third party logistics service providers and we had taken our own logistics initiative to serve our customers and last time when we had talked about we were expanded our logistics service we branded in Rocket Bees. That’s our own internal in house logistics initiative and this is a totally asset light model we have spoken about in the past.
We maintain the entire tech stack here. These are third party you know dedicated service providers who are working on that tech stack, regional local ones to be able to work with us directly and directly work for first crash shipments. This Rocket Bees initiative has expanded in less than nine to 10 months from the time we started from scratch last time when we spoke about we had expanded to 13 cities. Now we have expanded by December end to 22 cities and happy to share that. With this increased volume and increased number of cities we have witnessed 20% improvement in delivery tats resulting in much superior growth and customer experience that we had started this initiative.
We continue to expand this we believe we should be able to cross close to around 45 to 50% of our total volumes by the middle of this year. So this is initiative on Rocket Bees which has given us tremendous boost and you know and will continue to give us a superior customer experience in times to come. While we built this architecture of Rocket Bees and our own delivery initiative, we had also been cognizant of the fact that customers, customers in India overall has been experiencing and and and a desire to get the products much faster than you know has been traditionally being served a few years back.
And over next few years that desire to get products much faster will continue to only increase and improve with that in mind, to cater to those expectations of the customers, we started a new initiative called First Cry Quick. We are currently underway on a pilot in three cities in Pune, Bangalore and Hyderabad where we not only serve our diapering category but service all other full range of products including baby care, nurseries, fashion, toys, everything that we normally serve across all categories. And this FC Quick model has been set to. We are leveraging our entire in these three cities as a pilot in few pin codes.
We’re leveraging our cocoa stores to begin with and few of our stockist network and also we’ll be extending it to the dark stores. With that we believe over a period of time you’ll be able to leverage our 1200 stores over a period of time. Once we streamline the entire tech product as well as the supply chain ops for the entire FC Quick to be able to deliver all products. Currently we are promising three hours as a promised delivery. We intend to reduce it a promise delivery over a period of time. The objective here is to ensure that we remain future proof foolproof in terms of being able to meet customer expectation.
While rocketbees will continue to serve across, you know, over a period of time, a large number of cities, not just only a few hours, but sdd, NDD and you know, across states deliveries as well. SC Quick is a pure few hours delivery is what we are endeavoring to deliver to cater to the future requirements of our young mothers and young fathers. Third initiative that we have spoken in the past is going to take shape in SS26 which will help us address more footfalls, more conversions through realigning product portfolio by getting into a width to a depth strategy.
Part of our product portfolio will move to a depth strategy releasing the cogs benefit to MRP reduction, catering to a wider audience and enabling us to have better conversions. So with all these three initiatives, we remain super super confident about structurally deliver superior growth in FY27. Once these all three initiatives are fully rolled out. Yeah, I think yeah, I’ll hand over to Abina for international business update. Hi, this meeting is being recorded.
Abhinav Sharma — Country Head of Middle east business operations
Hi, good evening everyone.
Abhinav Sharma — Country Head of Middle east business operations
One second. I think I have a tech glitch. Can you, can you hear me guys?
Unidentified Speaker
Yes, yes, yes.
Abhinav Sharma — Country Head of Middle east business operations
All right.
Abhinav Sharma — Country Head of Middle east business operations
Good evening everyone. So our story for Q3. Looking back at Q3 this year, we witnessed as Superman mentioned in this first slide, we we witnessed very elevated promotional activities. You know, led by the two horizontals that we’ve spoken about in the previous quarters as well. However, we on our part stayed relentless with razor sharp focus on not Participating in that kind of a frenzy or negative spiral as we call it and wanted to ensure that we are on a path to sustainable growth with improvement in our gross margins. Anish, next slide please. So you know, having said that, we expanded our gross margins in like for like quarters by 150bps and over a nine month comparative period by 180bps.
We also saw a reduction in our ebitda losses from 15% to 11% in percentage terms and in absolute value about 25% reduction like for like quarters the same in the nine month comparative period we reduced our losses from 17% to 10% and in absolute value by about 36%. So you know the trend if you, if you look at the trend, the path that we’ve sort of stayed sustained over the last few quarters as we’ve discussed previously, we’ve seen reductions or improvements rather in our EBITDA losses right from FY23 to FY25 we’ve reduced our losses by 831 bips.
And if you compare FY25 over the nine month period of FY26 we’ve reduced it by 705 bips. So very sustained focus on both a very sustained, healthy, top line sort of a growth. When I say healthy I mean looking at, you know, ensuring that EBITDA losses quarter on quarter and year on year are reducing as we speak. Over to you Anuj.
Anuj Jain — Chief executive Officer
Thanks Abhinav. Good evening everyone. Here’s the update on Global Bees. As you’re aware, over the last few quarters we’ve been speaking about rationalizing certain brands because they were delivering a relatively lower revenue growth as well as incurring losses. And we believe that we should be able to complete this rationalization in the first quarter of FY27. Therefore we’ll first focus on the core categories performance. For nine months FY26 we did a revenue of 1417.4 crores which was a 30% year on year growth. If I were to Compare this to H1 as well as quarter one of this year we were at very similar levels of growth of 30%.
So as of now we’re delivering pretty consistent 30% growth. The EBITDA was 69 point adjusted. EBITDA was 69.8 crores which is 4.9%. If we look at the consolidated view, it’s been a good quarter and it’s been a good nine months. In the last quarter we delivered a 22% growth from 422.3 crores to 515 crores and even on a nine month basis the growth has been 22%. So again the overall story of growth is consistent across the year. All of this growth has been organic. The last acquisition that we made was in September 2022. Moving on to the adjusted EBITDA.
The adjusted EBITDA for the last quarter grew by 147% year on year and moved from 1.4% in the previous year to 2.9% this year. If I look at it on a nine month basis we grew by 54% and from a 1.6% in the previous year to 2% this year. We just look at the overall trend of EBIT adjusted EBITDA that we’ve seen over the last few years. In FY23 we were at minus 5%. In FY24 and 25 we moved to a 0 and a 1% and in this year’s nine months where at 2%. However, again looking at if I were to remove the brands that we’re rationalizing and if I was to focus only on the core categories, the adjusted EBITDA becomes 4.9%.
So that that sums up the Global Peace update. Thanks.
Unidentified Speaker
So this is the console performance of all the segments put together. So while three segments was just explained by by Vivek, Abhinav and Anuj, the sports segment which is which primarily represents our school business, it continues to perform very well for the three months ended 31 December. If I talk about the EBITDA growth, EBITDA growth has seen a jump of 40% year on year and if I talk about the nine months growth in the EBITDA it is roughly around 27% in terms of percentage of EBITDA to the revenue for the Q3 the EBITDA was roughly around 31% and for the nine months it stands around 27%.
So that continues to perform very well. So if we add all the four segments, what we get is a 12% year on year growth in Q3 21,72 crore rupees increasing to 24,23 crores. Similarly if we talk about the nine months performance, a growth of 11%. There is some dip in the gross margins as presented and talked about in the previous slides largely because of some decline in our India multi channel business gross margins which is largely because of heightened competitive intensity especially in the diapering category that we have seen in Q3 and the second one is Drop in gross margins in global bees business while it continued to improve ebitda the gross margins has reduced because of two reasons.
One is a drag on gross margin because of the other categories which is non core other than the core categories. And the second one is some change in the revenue recognition policy of of Flipkart that has reduced the margin. However, on a EBITDA level global these continue to perform very well with this gross margins and the revenue growth. What we achieve in terms of EBITDA is a 25% year on year growth for the nine months FY25, FY26 over FY25 which is from 5.1% we have reached to 5%, 5.8% of EBITDA. All the business segments, you know, continue to see EBITDA growth on the nine months basis.
India multi channel increasing by 6%. Global bees increasing by, you know, 47%. School increasing by 27% and international business the losses have come down by almost 36% in nine months. So all the four business segments has contributed to the improvement in this beta.
Unidentified Speaker
Yeah, happy to take questions.
Questions and Answers:
operator
Thank you team. We will now move on to the Q and A. I request participants to raise the hand for asking questions. We will unmute you one by one and you will have access to the mic. Please introduce yourself and the name of the organization you represent. The participants are also requested to limit their questions to a maximum of 2. For any follow up questions, you may join the queue again. Next question is from Mr. Sachin Dixit. Sachin, please unmute yourself.
Unidentified Participant
Hi. Hi Superman. Gotham, I had three questions. The first one was on our brand partnership. Right. So while, yes, we are struggling with growth for sure, but I also noticed that in the nine month FY26 period, the number of brand partners we have is actually lower than what we had last year. What is happening there? Is it, is it also driving some of the headwinds that you are facing?
Gautam Sharma
Yeah. So you want to complete the. Okay, we can address this particular point. You’re talking about from some 8,000 number to something. Some, you know, numbers getting
Unidentified Participant
seven.
Unidentified Participant
800. Yeah. 7,800. Yeah.
Gautam Sharma
That’s, you know, absolutely that point needs to be ignored because those brands don’t even contribute less than 0.5% of our revenue. So you can continue to ignore that. We are rationalizing at our end to be able to manage our own curation in a much smarter way.
Unidentified Participant
Understood. I mean largely for most marketplaces one would be anticipating that the number of brands goes up rather than goes down.
Gautam Sharma
Sachin, that’s not a metric that really impacts us. So nothing to. It’s completely to be Ignored because that’s not the brands that are, you know, there are lot of mompreneur brands and there are a lot of, you know, new brands that come and go, you know, they, they completely get wiped out, you know, over a period of time in their own journey. A lot of entrepreneurs, young, you know, mompreneurs as well, so we can’t continue with them once. They can’t give us the, you know, sort of a customer experience of the products that we are requiring for.
So we take those calls as well in terms of curation of the brands that we are catering to, the customer for our customers. So but these are long tail, I would say the, you know, the far end of the long tail. So nothing to worry about at all. No impact. Yeah, zero.
Unidentified Participant
Okay. On the second question on our own supply chain initiative, right. I mean obviously I think this question has come up earlier as well. You had ExpressV’s which as far as media reports suggest is faltering and now you are again doing a rocket bees. I mean how certain are you that you really need to build this? Right? I mean as far as the broader E commerce goes, most people are happy with third party logistics. One large player which is shipping like 2 billion shipments is probably doing in. No in sourcing, which makes sense, probably at that volume.
But for your volume, how certain do you feel it is needed? And especially in the light that we have highlighted supply chain issues now for two quarters in a row. So, so we’d love some color there.
Gautam Sharma
Sure. Sachin, if you look back, you know, last two quarters that we have talked about, you know, third party logistics is hugely dominated by their demand, is dominated by, you know, players like Misho and others. And you know, the customer sensitivity of, you know, and I don’t wish to mention that there is no distinguishing distinguished service for a player like us versus someone else. So while we are very, very particular, the kind of customers that we are catering to is far more particular in Metro Tier 1, Tier 2 or Tier 3. Whereas players who are dominating the demand of some of these LSPs are on the tier 3 plus.
So the consistency of service doesn’t exist there and our customers are suffering. So we had to take things. We waited for quite some time. I think I acknowledged in the last call as well that we were late but, but, but I think we had to take things in our own control in terms of being able to provide that kind of a service which customers will love. And these are young moms, young parents who cannot wait beyond the promise that you are promising and on top of it with the, you know, I would say the feature of quick commerce and general, you know, commerce being, you know, so pervasive in today’s world and today’s Gen Z audience and so on, so forth.
It is very important from our future perspective as well to build our supply chain which you can tailor to your requirements rather than being dependent on the third party. It’s not like in US where you have FedEx being same day delivery or a one day delivery versus a three day delivery. You can decide as a customer for a shipper like FedEx. In India we don’t have that kind of models so we had to take things in control. And for any large e commerce player like us, I would say logistics is a very, very integral part of our journey.
Initially ExpressBees was built like that, but I think they moved in their own direction in terms of managing their own PNL and their own sort of a story. And likewise for delivery, likewise shadowfax and so on and so forth. We believe we are in much better shape. We track metrics of performance of third party, we work with all of them still and we are scaling our own Rocket B’s as well. We are far superior in terms of customer experience. As I told in my presentation a few minutes back, we have a 20% superior delivery tat compared to the third party logistics.
That itself is critical for us to be able to provide that experience and it helps in reducing RTOs and so on, so forth, which I can talk a lot about it but I will reserve my comments saying that it is important to build that architecture and it’s an asset light model. It is at the same cost. Initially there is a little bit of a bump up, but as you scale and you build your own network in cities, you are able to have the similar cost as a third party logistic. So it doesn’t come at an incremental cost in a medium to long run.
And on top of it, if you have your architecture, you can actually build an FC quick kind of a model which otherwise you cannot. You can probably dream and wait for, you know, I would say, you know, performance to be done by somebody else. Whereas the core, if you look at any large player, everyone has their own fleet, everyone has their own model to be able to deliver that kind of a service. And it had to happen probably it happened. Now we wish we had not anticipated it couple of years back but I think it was imminent that it happened and now we feel more confident.
Having taken rocket beach to 28 cities and it will continue to grow week on week fortnight, on fortnight basis. And as I said 45 to 50% of a shipment will be done by middle of the year which will mean a lot improved customer experience. Help us in growth of the same customer who we are serving through rocketbees and on the same architecture be able to scale up our FC quick as well which otherwise would have not been possible.
Unidentified Speaker
Just to clarify Sachin, you talked about the supply chain issues. So what we talked about as a supply chain issue is not anywhere related to logistics. I’m just clarifying that yeah those supply.
Unidentified Speaker
Chain were related to you know, sourcing LED supply chain, not the forward looking supply chain which is from our warehouse to end consumer.
Unidentified Speaker
So Sachin and just wanted to add on to what Supam was mentioning that we continue to work with all third party logistics and they are critical for our business. But while rocketbees also continue to give us more flexibility towards making sure that the consumer sentiment improves and solve for micro nuances of the consumers.
Unidentified Participant
Sure understood. Just my final question on the margin outlook for India business if I can. Right. So we have been generally trending. I mean earlier we were doing 8090 basis points expansion. Then we dropped to 5060 this quarter it looks like why we have dropped margin. Is there any new outlook on how margin should look like on the India business? That’s my last question.
Unidentified Participant
Thank you.
Unidentified Speaker
So searching on a medium to long run, nothing changes. I think this correction that has happened is largely because of a certain heightened competition that we saw in one of our categories which is diapering. We have seen this kind of events even in earlier years once. These are irrational I would say events that has happened. Obviously we don’t control that because it’s been done by large players. I think once it improves that improvement will come back sharply but we can’t anticipate the time. However our structural improvement in gross margin across our 85% of the portfolio will continue to happen.
You know, quarter on quarter year on year basis when we you know, increase our category mix, improve our category mix and improve our home brand mix. So that doesn’t change at all. Hope that answers.
Unidentified Participant
That does. Thank you.
Unidentified Participant
Thank you.
operator
Thank you Sachin. The next question is from Ajay Agarwal. Ajay, please unmute yourself.
Unidentified Participant
Hi Sham got up and team good set of results. I have three questions. I will take the first one on the India business. So how are you viewing the new players that have emerged in the baby and kids vertical with whatever delivery being a proposition? There are couples of the players I think in the market especially in the metro cities that have emerged in this segment. So this is my first question I think should I repeat all three and then you will take that or you want to take one?
Supam Maheshwari
We can go one by one. It helps to remain focused. So Ajay, I think look your point is fair but I can just say that we have heard about two small sort of venture funded companies. Look, you know these are early days. There is a frenzy of quick commerce and I think people are just riding on that bandwagon. They’re operating out of a I would say single dark store in a few catchment of a city like NCR and Bangalore and scaling this model to a level where they attain scale, build a acquisition engine ecosystem of a certain sort of a competitive game or a unit economics and on top of it being able to build home brand it will take them many many number of years and currently their unit economics is at a CM2 sort of a soap terrible that it will take you know in our estimate hundreds of millions of dollars for anyone to really take certain shape and size.
So in, in our opinion, in our assessment it’s very very hard to replicate what has been built for you know players like the new you know players that you are mentioning in especially in the quick commerce baby and kid space. So good luck to them and good luck to you know being able to generate hundreds of millions of dollars in investment to be able to fund their growth or you know fixing their unit economics.
Unidentified Participant
Thanks Upam. It makes sense. The another question is on international business so when we will you will be able to turn EBITDA break even in the international business and by when can we expect the growth to bounce back.
Unidentified Participant
To higher level
Unidentified Speaker
A so Ajay, good question. Slightly longer answer. Stay with me. So a early days and you know if you’ve seen the last few quarter results, you know especially the expansion of gross margins and a a certain sort of a top line growth as well as reduction in losses. I think the path that we’ve chosen for ourselves here for the international business is ensuring that we grow and while we grow we are very focused on reducing our losses first. That’s the topmost priority because we believe fundamentally that while the competition intensity is very high, we saw that last quarter also we must remain very absolutely focused on ensuring that we are not joining that bandwagon because retaining customers, acquiring the quality customers is the topmost priority especially in the ecosystem which are inducing your CACs to be on the higher side or even the CPCs and CPMs to be very high just because of the intensity we have to remain focused.
We are ensuring that our home brand mix in the business what we are selling. The mix of home brands is improving. The mix of brands that are higher gross margin or higher repeat categories for us is improving. While we do that, our profitability path is very clear that we are not going to achieve a certain step function growth in top line or we are not to commit to a step function growth in top line while having a steep drop in gross margin or steep drop in ebitda. So the first priority is obviously improving or reducing our losses.
Having said that, I think three and a half years into KSA and about just over five and a half in uae, still early days we’ve seen the same frenzy in India. If you go back 10 years or 15 years, you know, we’ve seen the horizontals play similar sort of a, sort of a business game plan while they expand the ecosystem for E commerce in the baby and kids category for us and for the larger ecosystem, we ride the wave once we have our unit economics, you know, in a, in a zone where we’re very comfortable to press on the pedal to grow faster and also break even.
So very early days to commit anything but definitely India I think and Supam, you can correct me if I’m wrong but India I think took about 10 years, you know, to achieve that sort of a profitability or break even. Mark, one thing we know is we’ll get there faster. It’ll not take us 10 years.
Unidentified Participant
Thanks for the detailed response. My last question will be on Global Bees Anuj. Good set of result in gb. I heard there was a mention of Flipkart impact of some growth in Q3. So can you help us to understand how much did Flipkart impact growth in Q3? And again on global V’s also any plans on listing of global V’s? Can you share the tentative timelines or any sense on the same?
Unidentified Speaker
Sure, sure. So I would say that overall, you know, with the, with the readjusted model that Flipkart has, there has been an impact on the revenue level itself and that has got depressed. Overall, our gross margin profile remains, you know, pretty, pretty consistent. And at a fundamental level there’s no material change in the margins of the core business. So really that the impact of Flipkart we’ve seen over the last couple of quarters has stabilized and in the coming year I think we should be able to simply grow from there.
Unidentified Speaker
Ajay, the right way of looking at the globally businesses is you look at the EBITDA growth rate which is around 150% increase year on year in Q3 and roughly 50% increase your year in in nine months. I think that’s the metric that we should see.
Unidentified Participant
Sure.
Unidentified Participant
Thanks for essentially answering all the questions. Wish you all the best of luck. Thank you.
Unidentified Speaker
Thanks. Thanks Ajit.
Unidentified Speaker
Thank you.
operator
The next question is from Mr. Ranjit. Ranjit, please unmute your.
Unidentified Participant
Hi.
Unidentified Participant
Am I audible?
Unidentified Speaker
Yes.
Unidentified Participant
Yeah.
Unidentified Participant
Hi, this is Tejas from Aventus Park. Hi Supam. Hi Gautam Subam. If you can just elaborate a bit our our plan with Rocket B’s and qwik, what exactly are we trying to solve here A and what it will entail in terms of capital commitment and bandwidth commitment in coming period.
Supam Maheshwari
So look, we have spoken about Rocket Bees initiative for Rocket Bees is a nomenclature that you have expressed first time on this call. But I think this initiative is almost a nine month old. We started somewhere around February, March, it was almost like 1112 months old now. So we have been speaking about a couple of quarters in our earnings call. We faced a lot of challenges in late 24 and in calendar year 25 where customer experiences because of our delivery delays and painful experiences because of disruption in the LS last mile service provider sort of ecosystem really, you know, gave our customers a lot of pain and we waited.
We tried all kind of all players but we could not really get the kind of output, the kind of experience that we would really desire to give to our customers. And with that sort of a landscape that this will not get fixed, you know, because as I said, India logistics do not provide differentiated service as what you will find probably in developed nations like us where you can have a shipper ship your order for a priority delivery versus a regular delivery. India doesn’t have as sophisticated nuance.
Supam Maheshwari
At.
Supam Maheshwari
Scale and at a cost that you would like it to be. And therefore we had no choice left but to take this, you know, last mile service, you know, sort of a game in our hand. We built a totally an asset light model. Total tech stack is being built by First Cry. And on that we have third party logistics, regional local players who are providing dedicated manpower who are attached to fulfilling those shipments or delivering those shipments to the last mile dedicatedly only our shipment, not mixing shipment with some other shipper. So with that we have not only improved, you know, I would say the delivery tag by around 20% compared to the third party logistics provider for our end customer, but also improve a lot of other metrics in terms of RTOs in terms of other metrics that come around damages and so on so forth.
Which essentially means superior sort of a customer retention and superior customer cohort. As more and more customers come under the area under the curve of rb, we believe that we will be able to improve our growth with higher retention and higher LTV from those sort of a customer. So it’ll, it will, you know, pan out very beautifully for us. Also I must say in the same breath that it doesn’t cost much extra compared to the third, you know third party LSPs cost. Initially for a few months it is a bump up, but after that once the city stabilizes onto a higher network of RB delivery visit, the cost really comes down to the same third party logistics sort of service provider cost.
So it is something that I wish we would have not faced this issue in the first place. But since we faced it, we had to build it. And having built it there was also a strategic sort of an understanding. With the undercurrent of last couple of years, that couple of quarters, we are seeing how quick commerce has been rapidly changing the consumer behavior of getting products much faster. With rocketbees sort of an architecture, we are able to now control our destiny or control our customer experience for Etsy quick as a model as well. Otherwise it becomes super difficult to just keep waiting for third party LSP to really build a model for you and being able to scale up as quickly as you would wish to.
That would have not happened. So it’s just taking things in our control. The way we did it in 2013 when we started ExpressBees we had to take that in because at that time There were no LSPs other than DTDC and BlueDART and so on and so forth. Historically. I don’t want to go there and tell you the whole sort of a story. You may already know that. So we had to build what we built at that point in time, but we had to do another innovation again. Once again because of the disruption in the LSP ecosystem in last couple of years and therefore ended up building our own Rocket Bees dedicatedly only working for first cry.
So I hope I have answered this question unless you have any specific question on this particular point.
Unidentified Participant
Yeah, thanks. This was quite comprehensive. Just one follow up there. So when we, when we look at a player like Nika now two years back, they also called out that because of logistic issues and other challenges, they are not able to give the customer experience was getting compromised and especially they were getting into Nike Lux also. So they wanted it to be much more Premium. Now they addressed it by investing in fulfillment centers closer to larger markets. And as the result shows now they seem to have solved the problem in a very good way. So just wanted to know this stencil that we are trying to use or we are using now, we are committed to has it been used and hence it gives us confidence or we are the first to try it.
Because to our naked eyes, Nika model also seems to be doing fine which also had similar challenges as we had.
Supam Maheshwari
So I’ll just tell you the broad difference between us and some other players that you are mentioning. Look, we are a mini horizontal in some sense. We are shipping from a 10 gram diaper pin to a 30 kilogram toy car. So our supply chain, our logistics model is far, far different than half a kilogram of a shipment of a typical sort of a fashion or a, you know, beauty BPC as a product category. So the supply chain is far, far different, right from storage to a, you know, line hall, mid mile, first mile and last mile.
So I think it is very, very complex. So it cannot be compared with what you are mentioning in real terms. So therefore, while things may work out with others in a different way, same paint brush cannot be applied onto our kind of a mini horizontal product mix where the spectrum of the product in physical form or a volumetric form is far different than what the others are providing. So we had to build what we therefore built and as you will remember, when we have already 85 warehouses, somewhere around 83 or 85 warehouses in the from a proximity standpoint already that network, we built it a fairly long period of time back.
In fact, we were the pioneers of building sort of a dark store when the dark store model as a name nomenclature did not exist. We built our first so called, today’s dark store in 2013 or 2013, 13 or 14, somewhere around that. So we have been fairly innovative in those terms. We enjoyed the fruits of that journey fairly early in our, you know, overall 15 year journey. But I think things change, environment change, you know, service models change, consumer expectations change and we had to reinovate, reinvent ourselves. And that is where it, you know, led to building what we have built.
Now this will be long lasting, this will be very strong pillar of our growth going forward. In fact, in the cities that we are already delivering through rb, we see a very significantly higher growth than the cities that we do not have RB today. I hope that really gives you and it’s significantly different. So therefore that gives us internal sort of a boost as well that what we’re doing is right. Not just vanity metrics in terms of customer satisfaction but also in terms of real growth that we’ll be able to demonstrate once more and more customer experiences RB and the RBE network increases to many more cities and we’ll be able to demonstrate India multi channel growth, our online growth into a very different curve in FY27.
We mentioned that in our presentation and hopefully we’ll continue to demonstrate sequentially, not just FY27 but sequentially a superior growth in our India multi channel. We are super confident on that on back of these initiatives. In fact.
Unidentified Speaker
This is a long term investment. It is a long term benefit that we are building for the consumers. So it is it is important from that window as well for us.
Unidentified Participant
Perfect.
Unidentified Participant
And just for last if I may squeeze in a follow up there. What percentage of our revenue or client pool or customer pool will be able to service with this initiative by let’s say in next two quarters and by the end of FY27. And you have said that witnessing 20% improvement in TAT wherever we have done implemented this. So other than that this customer experience shows up in which KPI and how how we should think of it translating into financials going ahead. That’s all from my side.
Unidentified Speaker
So as I as I alluded I think we are witnessing significant superior growth. So if you’re talking about 8.9 or maybe 11 if you want to you know iron out the supply chain deficiencies that we witnessed in quarter three, you can apply definitely a much superior growth than that we have in cities that where we have RB talking about mid teens plus growth. So as we as we expand our Rocket Bees network to more and more cities we should be able to expand you know that mid to late teens growth model in those cities as more and more customers really get area under the curve.
So as I said Rocket Bees by middle of the current calendar year we should be able to touch 45 to 50% of our overall shipments.
Unidentified Participant
Thanks and all the best for coming quarters.
Unidentified Speaker
Thank you.
Unidentified Speaker
Thank you.
operator
Next question is from Vinit Vinit please unmute your.
Unidentified Participant
Hi.
Unidentified Participant
Thanks for the opportunity. So just a follow up on FC Quick. I get your point around the third party logistics but how would you Q Commerce players as our competition who are delivering within say like 10 to 15 minutes and what will be our value proposition if we are if our delivery promises two to three hours. So is it going to be the assortment depth or it will be largely pricing led.
Unidentified Speaker
So Vinit if you think you know let’s go back into the shoes of a mom. Typically, our AUPT is fairly high compared to, you know, a quick commerce. The mother typically will put multiple number of units in a typical order, number one. Number two, our assortment itself we are talking about not just, you know, diapering or consumables, we are talking about entire fashion, footwear and baby gear, nursery toys. You know, the entire product categories that we serve in a regular business is also being served in the FC Quick. So it’s a very different experience. And we are leveraging 12 today.
We are leveraging, you know, on a pilot in these three cities on few PIN codes across our cocoa stores, through our coco stores and through our current sort of warehouse. Over a period of time, we will be leveraging close to around 1200 our cocoa stores as we progress further, that will give us an extremely high operating leverage. And as well as in certain pin codes, we’ll also be able to increase coverage of dark stores as well. So over a period of time, we believe that while 10 minutes is what we are not solving for the young mother who is probably looking for a single item, we are not catering to that.
And we have talked about there’s not so much of an overlap between what Quick commerce assortment is and what our assortment is. We’re talking about a full assortment in just to give you example, non fashion assortment itself, we have 300,000 SKUs just in non fashion assortment. So it’s a very large assortment that we are talking about. And with that, we believe the objective here is not to solve for 10 minutes or half an hour. It is to solve for that customer experience where they have a certainty that will come in few hours with the full basket that they have ordered for.
That is what we want to give assurance rather than and to catch on to that customer experience is what we want to solve for. And that will be remain the bulk of the customer experience that, you know, young mothers or young fathers would want to solve for. And look, majority of the products that we sell is our home brands that we have already acknowledged in the past. So that is not available anywhere. And in, in particular babies and kids space. There is a challenge on size and scale of brands, third party brands that are available.
That essentially means that customer would come back, would shop with us and will shop more and more with us provided he gets, you know, if you know, a certainty on our quality of delivery experience through FC Quick, we’ll raise the bar. That’s the objective that we wished and we have already had, you know, I would say few weeks of FC Quick already Live. Of course you can try it in few these three cities in some PIN codes and the experience or the pilot our results have been I would say very superb for us. We’re just ironing out the tech product and the overall supply chain, overall efficiency and we’ll continue to scale this up like we are giving you RB update, we hope to give you the FC Quick update over next few quarters as we go along.
So we remain super excited on you know on these three initiatives that we have talked about today.
Unidentified Participant
Perfect.
Unidentified Participant
So I have a slightly structural question over our growth. While I appreciate our focus on profitability but over say like last four to six quarters our India multi channel growth has moderated significantly versus our own historical growth say like pre listing and we’ve also alluded to say sort of weaker consumer sentiments but other multi channel platforms in Nika has grown significantly faster while expanding margins. So structurally beyond FC Quick what are the other levers that we are working on to reaccelerate growth back to say like mid teens or higher?
Unidentified Speaker
I think with these initiatives itself. Look there are always many projects and many initiatives that we undertake in our regular day to day and which we have not spoken about but these were three large worth mentioning initiatives that we spoke about which will really move the needle. We remain super confident about our mid to long term story of being able to deliver mid to late teens growth or our India multi channel. So we remain committed to that in last three quarters itself. If you in my first slide itself I think we talked about the growth increasing quarter on quarter, year on year basis sequentially for last three quarters and you will continuously see that happening over next few quarters.
And I think structurally with these three initiatives we are destined to be able to see that and deliver that without any compromise. We don’t see any challenge. We have to just execute on these initiatives hard day in day out and ensure that we are attaining and delivering those results that you’re all anticipating. So I think it should happen sooner than later. FY27 will be far superior than FY26 and I didn’t mean to say back ended, I mean sequentially quarter on quarter should be able to see a continuous increasing growth year on year.
Unidentified Participant
Perfect. That’s it from my side. Wish the team all the best.
Unidentified Speaker
Thank you.
Unidentified Speaker
Thanks.
operator
Thank you. Vinit, in the interest of time we’ll just take one last question. Arvind, please unmute yourself.
Unidentified Participant
Hello. Hi. Thank you for opportunity. So like given the unique lifestyle of baby and kids production, how we are working to extend our customer engagement beyond early Childhood and maximize lifetime value.
Unidentified Speaker
So Arvind, we have couple of initiatives, couple of things that we have talked about a few times and maybe it’s in the supplementary slides as well. We cater to products from -9 months when the mother is pregnant. Even prior to that we engaged with the mother through our parenting platform which is part of our first cry app. From there from that time once before the mother conceives a child from that time itself we have the product range up to 12 years of the age of the child.
So you know, many years back we had started the journey from -9 months to 3 years, then we extended it to 6 years, then later extended from 6 years to 12 years. So and we have compartmentalized our app. If you look at our front end, a three year old mother or a six month old, I mean three year old, you know, young one mother or a six month young one’s mother or a six year old, you know, kid’s mother will see a very different homepage as they progress, as their kids progress over age over time.
Unidentified Speaker
Even based on the gender. Also it’s, it’s, it’s very personalized so.
Unidentified Speaker
It’S a hyper personalized from both gender and age and being able to show the relevancy of the products and being able to therefore retain the lifetime value of the customer from almost up to a 15, 16 year because there are almost 1.5 kids a family and therefore couple of years of gap, two or three years of gap in between first and second child between almost 15 to 16 year of a lifetime value is what we are able to sort of map with driving engagement through the product journey that we have been able to build. Initially the engagement is from parenting platform which is a far superior engagement.
But over a period of time it is more I would say through the products and the superiority of products and our home brand play and the curated play through partnership with our thousands of brands is how we are able to retain those customers and superior customer experience. So that’s how we have been able to manage and intend to grow the lifetime value and the cohort and frequency of customers.
Unidentified Speaker
In fact, you know, in the supplementary slide there’s a slide on the revenue cohorts as well. You can refer to that slide in the presentation we have shared with the stock exchange.
operator
That was the last question. I’ll just hand it over back to the management for any concluding remarks.
Unidentified Speaker
Nothing. Anish. Thank you everyone. Thank you for your time. We promise we continue to deliver on what we have mentioned here. So you’ll continue to see an improvement in our India multi channel growth and overall growth of this consolidated business. Looking forward to seeing you in the next quarterly update. Thank you once again.
Unidentified Speaker
Thank you so much.
Unidentified Speaker
Thank you.
Unidentified Speaker
Thank you so much everyone.
Unidentified Speaker
Thank you.
operator
The recording has stopped.