FirstCry Shares Jump 11% Intraday After Q3 Results

SUMMARY

FirstCry trimmed its consolidated net loss by 69.5% in the third quarter of the current fiscal (Q3 FY25)

With a jump in its share price, the company’s market capitalisation zoomed to INR 21,852 Cr at 1:35 PM with more than 20 Lakh shares traded hands by then

The stock later pared gains and was trading at INR 420.9 apiece on BSE at 1:35 PM

Shares of FirstCry jumped as much as 11% to INR 463.20 on the BSE during the intraday trading session today (February 10) after the company trimmed its consolidated net loss by 69.5% in the third quarter of the current fiscal (Q3 FY25).

The kids-focussed omnichannel retailer reported consolidated net loss of INR 14.78 Cr in the quarter ended December 2024 against INR 48.41 Cr in the year-ago quarter.

With a jump in its share price, the company’s market capitalisation zoomed to INR 21,852 Cr at 1:35 PM with more than 20 Lakh shares traded hands by then.

The stock later pared gains and was trading at INR 420.9 apiece on BSE at 1:35 PM.

FirstCry’s operating revenue surged 14.3% to INR 2,172.30 Cr in Q3 FY25 from INR 1,900.19 Cr in Q3 FY24.

Brokerage firm JM Financial reiterated ‘BUY’ rating for FirstCry with revised SoTP based March 26 target price of INR 632 per share. The PT is 51% higher than the company’s closing price at INR 417.90 in the last trading session (February 7).

“We expect the company to deliver 19% revenue growth over FY24-29, while adjusted EBITDA CAGR would be ~48%, driven by sharp margin expansion across segments, aided by 430bps gross margin expansion and the consequential operating leverage, resulting in FY29E adjusted EBITDA margin of 11.5%,” the note said.

For Q3 FY25, the company’s total revenue including other income stood at INR 2,216.58 Cr during the quarter ended December 31, 2024. Its consolidated adjusted EBITDA stood at INR 293 Cr during the quarter under review, up 30% year-on-year.

The surge in revenue was driven by a strong growth in FirstCry’s India multichannel business’ annual unique transacting customers (UTC), which rose 17% to 9.8 Mn in Q3 FY25 from 8.4 Mn in the corresponding quarter last year.