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    Singer India

    505729
    Consumer Durables·13 Nov 2025
    Management Summary

    Singer India reported a strong rebound in Q2 FY26, with overall revenue growing 30% and PBT nearly tripling, primarily driven by robust performance in the Sewing Machine category. The company achieved a significant milestone by securing a BIS license for local manufacturing of ZigZag machines. However, the Appliances segment continued to face headwinds, experiencing a 17% revenue decline and margin pressure, leading to losses in the first half of the fiscal year.

    Highlights

    5

    • Q2 revenue grew 30%

    • Q2 PBT grew nearly 3 times, from ₹1.67 crores to ₹5.22 crores

    • Sewing Machines revenue grew 45% in Q2, driven by broad-based trends across all segments and channels.

    • E-commerce business grew over 40% in Q2, showing strong momentum.

    • Secured BIS license to manufacture/outsource ZigZag machines locally in India, marking a major milestone.

    Concerns

    4

    • Appliances revenue declined 17% in Q2 due to unfavorable weather and blocked trade inventory.

    • Appliances gross margins fell by 340 basis points in Q2 due to an unfavorable product mix.

    • Appliances business lost approximately ₹5.5 crores in H1 FY26.

    • Primary offtake in Q2 was subdued due to the GST rate change transition period (September 3rd to 22nd).

    What Changed1

    vs Q3 FY26

    Risks discussed3 → 4 (+1)
    Key financials

    Metrics

    6

    Periods

    2

    Headline

    5
    • Revenue Growth
      30%
      YoY+30%
    • PBT
      ₹5.22 Cr
      YoY+2.1%
    • Sewing Machine Revenue Growth
      45%
      YoY+45%
    • Appliances Revenue Decline
      -17%
      YoY-17%
    • Sewing Machine EBIT Margin
      11.8%

    H1

    1
    • Cash from Operating Activities
      ₹21 Cr

    Segment breakdown

    Sewing Machines
    45% Revenue Growth11.8% EBIT Margin34% Zigzag Segment Revenue Growth14.0% Industrial Sewing Machine Growth
    Appliances
    -17% Revenue Decline340 bps Gross Margin Decline
    List

    Order Book

    high confidence

    Total Value

    ₹ 202 crores

    as of 2025-09-30

    quantified

    Execution

    to be completed by June '27

    "The PMY order remains subdued, but deliveries are progressing based on government instructions."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    M&A

    Singer India Limited (investment from VSM)

    acquisition · closed · Consideration ₹NaN (cash)

    Liquidity

    Liquidity disclosed

    Company is sufficiently financed with enough cash to set up the new factory.

    Guidance & targets

    5
    CategoryTargetPriority
    Profitability
    Appliances Business Profitability
    Profitable
    		Low
    Profitability
    Consumer Goods Business Break-even
    Break-even
    		Low
    Performance
    H2 FY26 Performance
    Better than H1
    		Low
    Capacity
    New ZigZag Manufacturing Facility Setup
    Facility setup
    		High
    Order Book
    PMY Order Completion
    Completed
    		High

    Appliances Business Profitability

    Next quarter/H2 FY26
    CurrentLosses of ~₹5.5 crores in H1 FY26
    TargetBreak-even or reduced losses

    Why it matters

    Sustained losses in the appliances segment are a significant drag on overall company profitability.

    We have lost approximately Rs. 5.5 crores in each H1 of this year... We should be back on track.

    How to verify

    key_financials.metrics[label='PBT']

    Risks & concerns

    4
    RiskSeverity

    GST Rate Change Transition Impact

    Primary offtake was subdued during the transition period (September 3rd to 22nd) for the GST rate change on sewing machines. — Management acknowledged

    medium

    Unfavorable Weather and Blocked Trade Inventory in Appliances

    Cooling products and appliances faced pressure due to unfavorable weather, blocked trade inventory, and cash flow issues. — Management acknowledged

    medium

    Appliances Business Losses

    The domestic appliances business lost approximately ₹5.5 crores in each H1 of this year. — Management acknowledged

    high

    Higher US Tariffs on Garment Manufacturers

    Industrial Sewing Machine category faced challenges due to higher tariffs imposed by the US on garment manufacturers. — Management acknowledged

    medium

    Q&A highlights

    7

    “the terms of the amended agreement remain confidential, and these are competition-sensitive information, so I'm afraid I will not be able to share these terms with you.”

    Analyst sought clarity on new royalty terms, geographical expansion, and tenure of the amended license agreement, which management declined to disclose due to confidentiality.

    asked by Avinash

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 FY26 Performance Overview

    Singer India reported a strong rebound in Q2 FY26, with overall revenue growing 30% and PBT growing nearly threefold from ₹1.67 crores to ₹5.22 crores. This performance was primarily driven by the Sewing Machine category, despite initial subdued demand during the GST rate change transition period from September 3rd to 22nd.

    02

    Sewing Machine Segment Outperformance

    The Sewing Machine category demonstrated robust growth, with revenue increasing by 45% in Q2. The promising Zigzag segment saw a 34% rise in revenue, and the Industrial Sewing Machine category grew by 14% despite challenges from higher US tariffs impacting garment manufacturers. The e-commerce business also contributed significantly, delivering over 40% growth in Q2.

    03

    Appliances Segment Headwinds Continue

    The Appliances business faced significant challenges in Q2, with revenue declining by 17% and gross margins falling by 340 basis points. This was attributed to unfavorable weather conditions, blocked trade inventory, and an unfavorable product mix. The segment recorded losses of approximately ₹5.5 crores in H1 FY26, and management acknowledged the need to make this category profitable soon.

    04

    Strategic Manufacturing & Licensing Developments

    A major strategic milestone was achieved with Singer India securing a BIS license to locally manufacture or outsource ZigZag machines, which were previously imported. This development is expected to make products more affordable for Indian consumers and open up export opportunities. The company plans to set up a new manufacturing facility for these high-technology ZigZag machines within 8-12 months.

    05

    Capital Infusion and Expansion Plans

    The Board approved a preferential issue of 5,65,397 equity shares to VSM (an SVP Worldwide entity) at ₹79.59 per share, raising ₹4.5 crores. This investment will partly finance the expansion of manufacturing facilities, design development, tools, and equipment for sewing machines. Additionally, the Jammu facility's capacity is being expanded to 6,000 machines annually within three months, and a new greenfield project for high-tech ZigZag machines is under consideration.

    06

    Distribution Network Expansion

    Singer India significantly expanded its distribution reach, with the number of distributors jumping from over 1,000 in Q4 last year to over 6,300 this quarter. This expansion is a result of mapping primary billing points, expanding to next billing points, and improving service levels to reach customers more directly, thereby enhancing market penetration.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.