FirstCry's international business (UAE, KSA) posted Q3 FY26 revenue of Rs 280 crore (+7% YoY) with gross margin expanding to 24.5% from 23.0%. EBITDA loss narrowed 25% to Rs 297 million. The 9M FY26 picture is stronger: revenue up 11%, losses down 36%, and gross margin at 25.2%.
EBITDA loss reduced 25% in Q3 and 36% in 9M FY26. EBITDA margin improved from -15.1% to -10.6% in Q3. Adjusted EBITDA loss stood at Rs 297 Mn in Q3 (vs Rs 395 Mn YoY) and Rs 701 Mn in 9M (vs Rs 1,094 Mn YoY). Path to breakeven becoming clearer with consistent quarter-on-quarter margin improvement trajectory.
Gross margin expanded 150 bps to 24.5% in Q3 and 180 bps to 25.2% in 9M. Revenue grew 7% in Q3 and 11% in 9M despite elevated competition from horizontal ecommerce players in UAE and KSA. Revenue growing faster than GMV signals improving take rates and unit economics in the international markets.
Revenue growing faster than GMV in 9M FY26 indicates improving take rates and monetization per order. Despite competitive intensity, FirstCry is extracting more value per transaction through higher-margin categories and premium positioning in UAE and KSA.
Horizontal ecommerce players intensifying promotional activities in core international markets. This competition is compressing GMV growth (5% YoY) but gross margin expansion (150 bps) shows FirstCry is protecting profitability through category mix and operational efficiency.
Consistent loss reduction across quarters (9M margin -9.7% vs -16.8% YoY) and gross margin at 25.2% suggest breakeven could arrive within 2-3 quarters. Operating leverage from revenue growth and cost control is accelerating the path to positive EBITDA.
FirstCry's international business is on a clear path to profitability. EBITDA losses narrowed 36% in 9M FY26 while gross margins expanded 180 bps to 25.2%. Revenue growing faster than GMV signals improving unit economics. The headwind remains competitive intensity in UAE and KSA from horizontal ecommerce players, but the margin trajectory suggests breakeven could arrive within the next 2-3 quarters.
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