Brainbees Solutions (FirstCry) shares tumble 7%; should you 'Add'? Check target price

Shares of Brainbees Solutions Ltd, parent of baby products retailer FirstCry, fell sharply in Wednesday's early trade, plunging 6.83 per cent to hit a low of Rs 221.05.

Despite the decline, JM Financial maintained its 'ADD' rating on the stock. In its report, the brokerage said the company delivered a broadly in-line operating performance during the March 2026 quarter (Q4 FY26), though there were a few segmental variances.

JM Financial noted that the India multi-channel (IMC) gross merchandise value (GMV) rose 11.8 per cent year-on-year (YoY), impacted by continued competitive intensity in the diapering category, which contributes around 15 per cent to GMV.

The brokerage said adjusted EBITDA margin for the IMC business declined around 200 basis points (bps) YoY to 7.3 per cent.

On the international business, JM stated that GMV growth remained muted at 1.8 per cent YoY due to elevated promotional activity from horizontal players. However, EBITDA losses narrowed meaningfully during the quarter.

Meanwhile, GlobalBees reported a strong margin performance. The brokerage highlighted that GlobalBees delivered a margin of 5.8 per cent, up 510 bps YoY, supported by core categories as rationalisation of non-core brands neared completion.

The brokerage further said consolidated gross margin remained under pressure due to elevated discounting in diapers, rupee depreciation and higher crude-linked raw material costs.

However, it added that operating leverage and marketing efficiencies helped offset part of the impact, resulting in a 30 bps YoY expansion in adjusted EBITDA margin to 5.5 per cent.

JM Financial also highlighted positive traction in strategic initiatives such as RocketBees, FirstCry Qwik and offline assortment realignment.

"These initiatives are already driving improvement in customer experience, delivery metrics and offline footfalls," the brokerage said.

It further stated that it expects a meaningful pick-up in IMC GMV growth in FY27 while maintaining its 'ADD' rating and target price of Rs 265 on the stock.

From a technical standpoint, Ravi Singh, Chief Research Officer at Master Capital Services, stated that the stock appeared weak on daily charts. Immediate support will be at Rs 200, while Rs 230 will act as resistance, he added.