Brainbees Solutions Limited, the parent company of leading baby and maternity products retailer FirstCry, confirmed that a BIS enforcement team conducted a search-and-seizure operation at its Bheemakkanahalli warehouse in Hoskote Taluka, Bangalore Rural District. The operation was initiated and concluded on May 26 under Section 28 of the BIS Act, 2016, reportedly in response to allegations that some goods were being sold without proper hallmarking or standard markings, which is a potential violation under Section 14(6).
The result: BIS officials seized inventory valued at approximately ₹90 lakh, raising serious questions about product certification and regulatory oversight in India’s booming consumer goods market.
Company Stands Firm: Seeks Legal Counsel, Claims Compliance
In a formal disclosure to stakeholders, FirstCry stated that it is obtaining legal advice and “has no reason to believe that the seized products are non-compliant.” The company reaffirmed its commitment to high standards in integrity and governance and said it has always operated in line with applicable BIS regulations.
Importantly, FirstCry clarified that operations remain unaffected, and there has been no material financial impactfrom the raid. Warehouse logistics and deliveries continue as usual, and the company is said to be cooperating fully with authorities.
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This is not the first time the company has come under regulatory scrutiny. In November 2024, FirstCry had also been flagged by the GST department in Mumbai, though details of that investigation were never fully disclosed.
Financial Snapshot: Revenue Rises, But Losses Deepen
Coinciding with the regulatory action was the release of FirstCry’s Q4 FY25 financial results. The company reported a 16% year-on-year increase in operating revenue, reaching ₹1,930.3 crore. However, despite the top-line growth, the company’s net loss widened to ₹111.5 crore, more than double the ₹43.3 crore loss in Q4 of FY24.
Sequentially, losses surged nearly seven-fold from ₹14.7 crore in Q3 FY25, indicating pressure on profitability even as scale increases. While the company maintains that the BIS raid has not disrupted business continuity, the optics of a regulatory seizure coinciding with growing losses adds complexity to its investor narrative.
The BIS raid on FirstCry is part of a broader regulatory crackdown on product certification and safety standards in India — particularly in sectors dealing with children, household items, and consumer essentials.