Brainbees Solutions Q4 Review: India Gross Merchandise Value Rises But Margin Missed Morgan Stanley Estimates

Brainbees Solutions Ltd. released its fourth quarter results, showing a mixed performance with notable increases in revenue, but significant decline in profitability. "The top line missed our estimates across businesses, except for Brainbees," Morgan Stanley stated.

The company's Gross Merchandise Value for India's apparel and footwear stood at 52%— a disclosure made for the first time. Home brands' share in India GMV stood at 55% in 2025, compared to 37% in 200, the brokerage noted.

Brainbees Solutions Q4 (Consolidated, YoY)

• Revenue up 15.84% at Rs 1,930 crore versus Rs 1,666 crore.

• Ebitda down 51.51% at Rs 16 crore versus Rs 33 crore.

• Ebitda margin down 115 bps at 0.82% versus 1.98%.

• Net loss at Rs 76.7 crore versus loss of Rs 51.7 crore.

• Exceptional loss of Rs 36.7 crore.

• Ebitda fell due to increase in other expenses by 21% and Employee Expenses by 25%.

"Q4 GMV increased by 14% year-on-year, while revenue and adjusted Ebitda were up 16% and 20% year-on-year, respectively." However, the reported Ebitda margin was 392 basis points lower than Morgan Stanley's estimate, largely due to higher Employee Stock Option Plan costs in Q4.

The brokerage also commented on the company's international performance, noting, "Revenue grew by 11% year-on-year, but remained weak due to higher competitive intensity from horizontal e-commerce players. The adjusted Ebitda margin was -15%, compared to -14% in Q4 FY24."

The research note provided insights into the company's focus moving forward. "Management is now focusing on improving offline growth in India and driving margin expansion in GlobalBees," the note said