Singer India — Q1 FY26 earnings call

Call held 11 Aug 2025

Management summary

Singer India experienced an unusual Q1 FY26 with an overall revenue decline, primarily due to a drop in the traditional cast iron sewing machine segment and appliances. Despite this, the zigzag sewing machine segment showed strong growth (38%), and the company secured a large government order (₹200+ crores) under the PM Vishwakarma Yojana, though it is currently sub judice. Management remains confident in achieving double-digit growth for the year, driven by new product launches in fans and continued market share gains in sewing machines.

Highlights

  • Zigzag sewing machine segment revenue grew by a healthy 38% YoY, indicating strong demand for modern models.

  • Secured a significant purchase order of 2.8 lakh machines, valued at approximately ₹200+ crores, under the Pradhan Mantri Vishwakarma Rozgar Yojana, representing 70% of the total requirement.

  • Industrial sewing machine category achieved more than 29% revenue growth in the last financial year (FY24-25), demonstrating strong underlying momentum.

  • Gross margin for the sewing machine segment was maintained at the same level as the corresponding quarter last year.

  • Introduced colored sewing machines at the same price point as traditional black models, with an encouraging response leading to over 10% of sales from these variants.

Concerns

  • Overall revenue declined in Q1 FY26, described as a "highly unusual quarter" that impacted profitability.

  • Overall sewing machine revenue declined by 4% YoY, primarily driven by a decline in the traditional cast iron segment.

  • Appliances revenue declined by 14% YoY, mainly due to lower sales of cooling products caused by a shorter summer and intermittent rains.

  • Gross margin in the appliances segment dropped by 100 basis points, primarily due to an adverse product mix from lower sales of high-margin cooling products.

  • The domestic appliances segment reported a loss of ₹2.36 crore in Q1 FY26.

  • The significant PM Vishwakarma Yojana order is currently sub judice in the Court, although there is no stay on supply and deliveries have commenced.

Key financials

  1. Sewing Machine Revenue Growth -4% -4%YoY
  2. Appliances Revenue Growth -14% -14%YoY
  3. Zigzag Segment Revenue Growth 38% +38%YoY
  4. Appliances Gross Margin Drop -100 bps

What they filed

Q1 FY27: revenue up 56.9%, net profit up 227.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue106 106 122 92 138 +30%161 +53%166 +37%145 +57%
EBITDA1 1 4 -4 4 +500%8 +858%7 +67%4 +196%
Net profit1 2 4 -2 4 +202%5 +257%6 +46%3 +227%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Domestic Appliances
    ₹2.36 Cr Loss

Order book

high confidence

Total value

₹200 Cr

as of 2025-06-30 range

Inflow this quarter

₹200 Cr

Execution

execution of this tender is about 12 months

Composition

  • Pradhan Mantri Vishwakarma Rozgar Yojana (PMY) (scheme) ₹200 Cr 70%

Pipeline

other

Second part of the tender is likely to come up, with a similar size to the first part.

Cancellations & deferrals

  • postponed: Other state government or institutional bulk orders were postponed in light of the PMY rollout.
The significant PMY order is currently sub judice but deliveries have commenced, and the working capital cycle is favorable as it's an advance.

Source: Prepared remarks

Capital allocation

medium confidence
  • Liquidity Liquidity disclosed Cash is not a limiting factor for new product categories, as spending is limited to inventory procurement.
    Rakesh Khanna - Again, this is not somewhere where there will be high upfront investment. The cash will be only to the extent of inventory that we will pick, procure and what we will sell. So, it's only the regular cash cycle of a sales and purchase cycle that will come in place. But beyond that, there is no other cash that we see is going to get blocked into this.

Guidance & targets

Appliances

  • Revenue Mix Appliances · next 2 years · Medium confidence 30%
    Rakesh Khanna-So you see, I personally see it can go up to 30% appliances in the next 2 years.

    — Rakesh Khanna

  • Profitability Appliances · within this year · High confidence break-even and thereafter gets into the profit category
    As I see going forward, within this year, our aim is to ensure that the appliances comes to a break-even and thereafter gets into the profit category.

    — Rakesh Khanna

Industrial Sewing Machines

  • Revenue Mix Industrial Sewing Machines · next 2 to 3 years · Medium confidence 30%

    From 17% today

    Rakesh Khanna- 30% industrial, and I'll tell you the reason. The reason is total size of the industrial sewing machine today is nearly 60% of the total market and we are small. So therefore, the speed of growth will be higher in industrial.

    — Rakesh Khanna

Fans

  • New SKUs Launch Fans · next 2 to 3 months · High confidence 68 SKUs
    On top of it all, in fans, we are launching a full portfolio of 68 SKUs, which will be launched in the period of the next 2 to 3 months. That's going to be our biggest focus area.

    — Rakesh Khanna

Overall Company

  • Revenue Growth Overall Company · this year and next year · Medium confidence fair, healthy or double-digit growth
    But put together, I think as of now, if I look in the short term with the kind of orders that we have in hand, it is simple that we should be looking at a fair, healthy or double-digit growth that should be coming to us this year and next year.

    — Rakesh Khanna

Sewing Machines

  • Revenue Growth Sewing Machines · coming few years · Medium confidence healthy double-digit growth
    Put all of these things together, we're confident that we will bring in a healthy double-digit growth in the coming few years.

    — Rakesh Khanna

Profitability

  • EBITDA Margin Profitability · long-term vision · High confidence 8 to 10%
    But I can tell you one thing that in this category, an EBITDA margin of 8 to 10% is the kind of target any company should have, and we should be looking at something similar. That is my long-term vision.

    — Rakesh Khanna

Government Tender Market

  • Total Order Size (Annual) Government Tender Market · per annum · Medium confidence ₹100 to ₹150 crores
    Rakesh Khanna-See, it's government orders and small institutional orders backed by government funds are highly fragmented, spread out across all the states and come through trade a lot of most of them. And therefore, to put on a steady figure to it is a little difficult, but all I can tell you is that even if we catch 10 to 15% of the sale coming from there, we are talking of in the range of 30 to 40 crores for us and the total order size can be close to 100 to 150 crores across the country.

    — Rakesh Khanna

What to watch in Q2 FY26

PM Vishwakarma Yojana Order Status

Next quarter
Current Sub judice, deliveries commenced for ₹200+ crore order
Target Legal resolution, continued execution

Why it matters

The ₹200+ crore order is a significant revenue driver for the sewing machine segment, and its legal status and execution are crucial.

While taking note of the fact that the PMY order is currently sub judice in the Court, there is no stay on supply, and we have already commenced deliveries as per the buyer's schedule.

Risks & concerns

  • PM Vishwakarma Yojana order is sub judice

    high

    The significant ₹200+ crore order is currently under court review, though there is no stay on supply and deliveries have commenced.

    Management acknowledged

  • Deferral of state government and institutional bulk orders

    medium

    Other bulk orders were postponed in Q1 FY26 due to the PMY rollout, impacting sales in the cast iron segment.

    Management acknowledged

  • Crowded home appliances market and competition

    medium

    The home appliances market is competitive, requiring strategic focus on product portfolio, premium positioning, and distribution to gain traction.

    Analyst acknowledged

  • Dumping of pre-used industrial sewing machines

    medium

    Pre-used industrial machines are being imported, which Singer is addressing by representing to the government for BIS standards to curb this practice.

    Management acknowledged

Q&A highlights

7 direct
Home Appliance segment revenue target and growth pace Partial
However, appliances are going to be a growth segment for us because that's where the potential lies. While the appliances will grow at a faster pace, the sewing machine is also going to continue to grow at a fast pace, because we see a lot of potential in the sewing machine category as well.

Analyst sought a specific percentage for home appliance revenue contribution, but management provided a qualitative response indicating both segments would grow, with appliances growing faster but without a major shift in overall mix.

Asked by Anurag Chheda

Attribution of Q1 domestic appliances loss of ₹2.36 crore Direct
Most of the loss that has come is because the sale of the cooling products was very low as compared to last year. You see, as such, we are on a small base. We had been in negative in the last few years, which we were able to successfully reduce the losses, and we were on a journey to move into positive. Because of that, we were anyway on thin ice; the unfavourable season impacted us. That is the basic reason for the loss in sales.

Clarified that the ₹2.36 crore loss in domestic appliances was primarily due to low cooling product sales, not the Cloud X fan launch, and was part of an industry-wide phenomenon.

Asked by Ashok Jain

Leveraging Singer brand legacy for Home Appliances and distribution strategy Direct
We have a strong foundation of a very strong Singer brand with very strong emotional value. We have to just build up with a strong product portfolio, strong distribution, and it will be a winning mix. ... In terms of distribution, currently, we are focusing more on trade sales. From this year onwards, we are going to start building on e-commerce.

Addressed how Singer plans to translate its strong brand recall into the home appliances segment, focusing on product portfolio, premium positioning, urban markets, and expanding into e-commerce.

Asked by Praneeth

Working capital cycle for the PM Vishwakarma Yojana tender Direct
Rakesh Khanna-This is an advance for us. Bhargav- Meaning that the entire money comes in and then the dispatch happens? Rakesh Khanna- Yes.

Clarified that the working capital for the large PMY order is favorable, as the company receives the full payment as an advance before dispatch, reducing working capital strain.

Asked by Bhargav

Rationale for outsourcing manufacturing despite having in-house capacity Direct
It's about where we want to spend our energy and bandwidth. If good vendors can deliver quality product on time and at the right cost, we prefer outsourcing, so we can focus on other growth areas. If there's a strategic advantage to manufacturing in-house, we will do it.

Explained the strategic decision to outsource manufacturing for certain products, allowing the company to focus its resources and bandwidth on core growth areas and product development.

Asked by Tushar Khurana

Market size and growth rates for the Sewing Machine Industry Direct
See, the total sewing machine market size is approximately 3000 crores. Out of which, around 60% and 45%, around 1300 crores is the Domestic and 1700 crore is Industrial. ... The growth rate in the market is in the range of around 4%.

Provided a detailed breakdown of the estimated sewing machine market size (₹3000 crores total, ₹1300cr Domestic, ₹1700cr Industrial) and the overall market growth rate (around 4%), informing investors about the market landscape.

Asked by Kush

Competition with Chinese and Japanese brands in industrial sewing machines Direct
Yes, as I said, we will work with our strengths and one of the biggest strengths that we have is that we are Singer, we have the kind of legacy, and we have the kind of distribution network that we have in India and the kind of bonding that we have. We are a late entrant; we understand that part. But we have great product with us, and we are building up skill and competency for servicing the machines for the training purpose, and we will be leveraging the relations that we have in the market.

Management outlined its strategy to compete against established Chinese and Japanese brands in the industrial segment by leveraging Singer's brand legacy, distribution network, and focus on service and competency building.

Asked by Nikhil

Timeline for becoming PAT positive Direct
Rakesh Khanna- We've been PAT positive. It is just that this particular quarter was a little unusual. Otherwise, we have been PAT positive.

Clarified that the company has generally been PAT positive, implying the Q1 FY26 performance was an anomaly rather than a systemic issue regarding profitability.

Asked by Viraj

3 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Overview and Challenges

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.

Sewing Machine Segment: Growth Drivers and Strategic Initiatives

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.

Appliances Segment: Turnaround Strategy and New Focus

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.

Market Share Expansion and Long-term Growth Outlook

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%.

Operational and Regulatory Landscape

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.

Distribution and Manufacturing Approach

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.

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