BIS raids FirstCry warehouse in Bengaluru, seizes goods worth Rs 90 lakh

Brainbees Solutions Limited, the parent company of FirstCry, said that the Bureau of Indian Standards (BIS) conducted a surprise search and seizure operation at one of its Bengaluru warehouses on May 26, 2025, over alleged violations of hallmarking regulations under the BIS Act, 2016.

According to the company’s regulatory filing, the BIS operation—initiated and concluded on the same day—culminated in the seizure of goods worth approximately Rs 90 lakh. The action was taken under Section 28 of the BIS Act, following allegations that a few of the products were being sold without appropriate standard marking or hallmark, in potential violation of Section 14(6) of the Act.

Company denies wrongdoing, seeks legal advice

FirstCry said it is obtaining legal counsel on the matter and maintains that the seized products are compliant with applicable BIS regulations. “The Company has no reasons to believe that the products seized by BIS are non-compliant,” it said in a formal disclosure. It further noted that operations remain unaffected, and the company is cooperating fully with authorities.

“The Company has always maintained high standards of integrity, corporate governance, and compliance in all aspects of its operations,” the filing added, asserting its commitment to compliance.

The BIS investigation took place at a warehouse located in Bheemakkanahalli Village, Sulibele Hobli, Hoskote Taluka, within the Bangalore Rural District.

No material financial impact yet, says FirstCry

FirstCry clarified that there is no material impact on its financials or operations, aside from the seized inventory. The company’s warehouse operations and deliveries have reportedly continued without disruption following the seizure.

The development comes at a time when regulatory scrutiny around product certification and safety standards is tightening in India, particularly in consumer segments involving children and essential household items.

This is not the first regulatory run-in for FirstCry. The company had earlier come under the scanner of the GST department in Mumbai in November 2024, though details of that probe remain limited.

The BIS raid coincided with the company’s latest quarterly results. For Q4FY25, FirstCry reported a 16% year-on-year growth in operating revenue to Rs 1,930.3 crore. However, its net loss widened to Rs 111.5 crore, more than double the Rs 43.3 crore loss recorded in the same quarter last year. Sequentially, losses surged nearly seven-fold from Rs 14.7 crore in Q3 FY25.