Is Brainbees Solutions (NSE:FIRSTCRY) Using Debt In A Risky Way?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We can see that Brainbees Solutions Limited (NSE:FIRSTCRY) does use debt in its business. But should shareholders be worried about its use of debt?

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When Is Debt Dangerous?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.

What Is Brainbees Solutions's Debt?

As you can see below, at the end of September 2025, Brainbees Solutions had ₹5.94b of debt, up from ₹5.64b a year ago. Click the image for more detail. But it also has ₹10.4b in cash to offset that, meaning it has ₹4.50b net cash.

A Look At Brainbees Solutions' Liabilities

The latest balance sheet data shows that Brainbees Solutions had liabilities of ₹22.2b due within a year, and liabilities of ₹15.7b falling due after that. On the other hand, it had cash of ₹10.4b and ₹3.88b worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by ₹23.6b.

Given Brainbees Solutions has a market capitalization of ₹169.7b, it's hard to believe these liabilities pose much threat. But there are sufficient liabilities that we would certainly recommend shareholders continue to monitor the balance sheet, going forward. Despite its noteworthy liabilities, Brainbees Solutions boasts net cash, so it's fair to say it does not have a heavy debt load! When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Brainbees Solutions can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.

Check out our latest analysis for Brainbees Solutions

In the last year Brainbees Solutions wasn't profitable at an EBIT level, but managed to grow its revenue by 13%, to ₹81b. That rate of growth is a bit slow for our taste, but it takes all types to make a world.

So How Risky Is Brainbees Solutions?

Although Brainbees Solutions had an earnings before interest and tax (EBIT) loss over the last twelve months, it generated positive free cash flow of ₹434m. So although it is loss-making, it doesn't seem to have too much near-term balance sheet risk, keeping in mind the net cash. Until we see some positive EBIT, we're a bit cautious of the stock, not least because of the rather modest revenue growth. When we look at a riskier company, we like to check how their profits (or losses) are trending over time. Today, we're providing readers this interactive graph showing how Brainbees Solutions's profit, revenue, and operating cashflow have changed over the last few years.

Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.