Singer India — Q2 FY26 earnings call

Call held 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

  • 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

  • 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).

Key financials

2 periods

Headline

  • Revenue Growth
    30%
    YoY +30%
  • PBT
    ₹5.22 Cr
    YoY +212.6%
  • Sewing Machine Revenue Growth
    45%
    YoY +45%
  • Appliances Revenue Decline
    -17%
    YoY -17%
  • Sewing Machine EBIT Margin
    11.8%

H1

  • Cash from Operating Activities
    ₹21 Cr

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

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

Order book

high confidence

Total value

₹202 Cr

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

high confidence
  • Capex Capex disclosed
    • Expansion of manufacturing facility, design development of tools, and equipment for sewing machines
    • Expansion of Jammu facility to 6,000 machines annually
    • New greenfield project for high-technology ZigZag machines
    This investment will support and partly finance expansion of the manufacturing facility, design development of tools, and equipment for the sewing machines.
  • M&A Singer India Limited (investment from VSM) Acquisition · Closed · Consideration ₹[object Object] (cash)

    VSM, an entity belonging to the non-promoter category and brand owner, invested in Singer India, showing confidence in India's promising market and partly financing expansion.

    Investment of Rs. 4.5 crores through preferential issue of 5,65,397 equity shares at Rs. 79.59 per share.

    Further, I'm pleased to share that the Board has approved the issuance of up to 5,65,397 equity shares under preferential issue to VSM, an entity belonging to the non-promoter category, at a price of Rs. 79.59 per share, representing a total investment of Rs. 4.5 crores in Singer India Limited.
  • Liquidity Liquidity disclosed Company is sufficiently financed with enough cash to set up the new factory.
    We are sufficiently financed, we have enough cash with us, and this will be used to set up the factory.

Guidance & targets

Profitability

  • Appliances Business Profitability Profitability · Soon · Low confidence Profitable
    We're confident we'll make it profitable soon.

    — Rakesh Khanna

  • Consumer Goods Business Break-even Profitability · Very fast · Low confidence Break-even
    we should be working towards getting into break-even very fast.

    — Rakesh Khanna

Performance

  • H2 FY26 Performance Performance · H2 FY26 · Low confidence Better than H1
    At a very personal level, yes this is my personal belief. I believe all the weather-related stuff is over, and we should be seeing winter, followed by a good summer. The trade is still carrying the inventory; that is something which we cannot ignore. But if the summer is good, the inventory should get liquidated very fast, and we should be on an upward trend once again.

    — Rakesh Khanna

Capacity

  • New ZigZag Manufacturing Facility Setup Capacity · 8 to 12 months · High confidence Facility setup
    We're saying anywhere between 8 to 12 months it will take us to set up the entire facility.

    — Rakesh Khanna

Order Book

  • PMY Order Completion Order Book · June 2027 · High confidence Completed
    this order has to be completed by June '27

    — Rakesh Khanna

What to watch in Q3 FY26

Appliances Business Profitability

Next quarter/H2 FY26
Current Losses of ~₹5.5 crores in H1 FY26
Target Break-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.

Risks & concerns

  • Appliances Business Losses

    high

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

    Management acknowledged

  • GST Rate Change Transition Impact

    medium

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

    Management acknowledged

  • Unfavorable Weather and Blocked Trade Inventory in Appliances

    medium

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

    Management acknowledged

  • Higher US Tariffs on Garment Manufacturers

    medium

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

    Management acknowledged

Q&A highlights

3 direct, 3 evasive
Royalty and License Agreement Terms Evasive
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

Brand and Distribution Spend Roadmap Evasive
I'm afraid I will not be able to speak all this in this forum. Maybe we can connect sometime, and I can give you some kind of visibility around that.

Analyst requested a 3-year roadmap for brand and distribution spend, which management was unwilling to discuss in the public forum.

Asked by Avinash

PMY Order Supply Details Evasive
I'm sorry, I will not be able to give the specific numbers, because these are, again, competition-sensitive information. But you are aware that this order has to be completed by June '27, and we are completely dependent on the speed at which the government will give us the dispatch instructions.

Analyst asked for specific supply numbers for the ₹202 crore government order, which management deemed competition-sensitive and dependent on government instructions.

Asked by Ashok B Jain

Appliances Business Profitability Partial
It is, of course, an important point for us also, and we are painfully aware of the amount of money that we have lost. But at the same time, it has been an industry-wide phenomenon, and I'm sure you have been looking at all other organizations. And being a small player, it has affected us more.

Analyst questioned the continued losses in the appliances segment, and management acknowledged the issue, attributing it to industry-wide headwinds but expressing confidence in a turnaround.

Asked by Ashok B Jain

Distributor Network Expansion Direct
what's been happening is that the machines have been available, whereas we have been mapping our primary billing points, and then we are expanding to the next billing points, and we are reaching out to all the people where the machines were indirectly reaching, and we are trying to reach out there.

Analyst inquired about the significant increase in distributors, and management explained it as a strategic effort to expand direct reach and improve service levels.

Asked by Harshit

ZigZag Machine Penetration and BIS Resolution Direct
our Zig Zag machine, its contribution is less than 10% in the household as of date. Therefore, the expansion opportunity is very large... the BIS-related benefit with respect to the amendment, answer is yes.

Analyst sought understanding of ZigZag machine market potential and confirmation that the new agreement resolves BIS-related issues, both of which management addressed positively.

Asked by Dhwanil Desai

Rationale for Preferential Allotment Direct
VSM is a wholly owned entity of SVP Worldwide, and SVP is the brand owner of Singer. So, it is SVP who has shown confidence in India, looking at India's promising market going forward. For me, it's a great thing, because India is really coming in the map where SVP has shown interest.

Analyst questioned the need for a preferential issue when the company had cash, and management clarified it as a strategic investment from the brand owner (VSM/SVP Worldwide) to fund expansion.

Asked by Dhwanil Desai

2 min read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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