Singer India

Singer India experienced a 'highly unusual quarter' in Q1 FY26, marked by an overall revenue drop that impacted profitability. The sewing machine segment saw a 4% decline in revenue, primarily due to the traditional cast iron category. The appliances segment faced a 14% revenue decline, largely attributed to a shorter summer and intermittent rains affecting cooling product sales, leading to a 100 basis points drop in gross margin for this segment and a reported loss of ₹2.36 crore.

Despite the overall decline, the zigzag sewing machine segment demonstrated strong performance with a healthy 38% revenue growth, which management believes represents the future of the domestic market. The company secured a significant purchase order of 2.8 lakh machines, valued at approximately ₹200+ crores, under the PM Vishwakarma Rozgar Yojana, representing 70% of the total scheme requirement. New product introductions, such as colored machines (contributing over 10% of sales) and redesigned models like square ARM and link machines, are expected to drive further interest. The industrial sewing machine category, which grew over 29% in FY24-25, remained flat this quarter due to high trade inventory but is expected to see higher growth.

The appliances segment, while currently small, is identified as a key growth area. To strengthen its presence, Singer India has onboarded Sunil Singh, an industry veteran, to ramp up its fan lineup. A full portfolio of 68 SKUs in fans is slated for launch within the next 2-3 months. The company's aim is to achieve break-even and subsequent profitability in the appliances category within the current fiscal year, leveraging a strong product portfolio and distribution.

Management highlighted the opportunity to gain market share, especially in the unorganized Black machine segment and the imported-dominated Industrial segment, where the overall market growth rate is around 4%. The company is confident of achieving a 'fair, healthy or double-digit growth' for the current and next fiscal year, with a 'healthy double-digit growth' projected for sewing machines in the coming years. The long-term vision includes targeting an EBITDA margin of 8-10%.

The significant PM Vishwakarma Yojana order, while already seeing commenced deliveries, is currently sub judice in court. Other state government and institutional bulk orders were postponed in Q1 FY26 due to the PMY rollout. On the regulatory front, Singer India is confident of maintaining healthy inventory levels for zigzag machines despite BIS licensing requirements. The company also noted a fire incident at its Delhi office, but confirmed no injuries and unaffected business operations due to secure cloud data storage.

Singer India is focusing on urban cities for distribution and plans to build its e-commerce presence from this year onwards, after correcting its price positioning. For appliances, the strategy involves outsourcing manufacturing to focus on product design and quality, as it requires significant scale. In industrial sewing machines, the company aims to build competency and leverage its strong trade relations, while also advocating for BIS standards to counter the dumping of pre-used machines.