Singer India — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Singer India reported a strong Q3 FY26, with revenue growing 53% to ₹161 crores and adjusted EBITDA surging 269% to ₹9.6 crores, primarily driven by exceptional performance in the sewing machine segment which grew 75%. The appliances segment, however, faced headwinds with a 7% revenue decline and margin contraction due to demand and cost pressures. The company maintains a healthy cash balance and is focused on 'Make in India' initiatives and e-commerce expansion.

Highlights

  • Revenue grew by 53% to ₹161 crores in Q3 FY26, demonstrating strong growth momentum.

  • Adjusted EBITDA increased by 269% to ₹9.6 crores, indicating significant operational leverage.

  • Adjusted PBT grew by 310% to ₹8.2 crores, reflecting improved profitability.

  • Sewing machine revenue saw a robust 75% growth in Q3, driven by broad-based strength across segments and channels.

  • The company generated ₹13 crores in net operating cash flow this quarter, with cash and bank balances at ₹96.13 crores.

Concerns

  • Appliances segment revenue declined by 7% in Q3 due to unfavorable weather, blocked inventory, and muted demand.

  • Gross margins in appliances contracted by 120 basis points due to an unfavorable product mix with lower sales of high-margin products.

  • Raw material cost inflation is leading to margin pressure, as big players hold prices while input costs rise.

Key financials

  1. Revenue ₹161 Cr +53%YoY
  2. Adjusted EBITDA ₹9.6 Cr +269%YoY
  3. Adjusted PBT ₹8.2 Cr +310%YoY
  4. YTD Revenue ₹391 Cr +26%YoY
  5. YTD EBITDA (pre-exceptional) ₹13.1 Cr +105%YoY
  6. YTD PBT (pre-exceptional) ₹10.2 Cr +132%YoY

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
    75% Revenue Growth
  • Appliances
    -7% Revenue Growth-120 bps Gross Margin Contraction
  • Fans (within Appliances)
    38% Growth

Order book

high confidence

Total value

₹200 Cr

as of 2025-12-31 quantified

Execution

expect to complete by June

Pipeline

L1 awaiting loa

Balance 50% of the PMY order, which was a single tender of 8 lakh machines, with 4 lakh awarded and 4 lakh pending.

The company is executing a ₹200 crore government order under the Pradhan Mantri Vishwakarma Rozgar Yojana (PMY) and expects to complete it by June. A balance 50% of the original 8 lakh machine tender is still pending, with the company awaiting government instructions.

Source: Q&A

Capital allocation

high confidence
  • Capex Capex disclosed
    • Greenfield plant setup
    As of now, we are still exploring. We have started assembly in Jammu plant, but we should soon come out with a complete proposal for the new setup.
  • Liquidity Cash ₹96.13 Cr The company reported ₹96.13 crores in cash and bank balances as of December 31, 2025, and generated ₹13 crores in net operating cash flow this quarter.
    So, this quarter, we generated Rs. 13 crore net operating cash flow and, we have around Rs. 100 Crores (actual is Rs. 96.13 Crore) sitting in our cash and bank balances as on 31st December 2025.

Guidance & targets

Order Book

  • PMY Order Completion Order Book · by June · High confidence ₹200 crores
    So, technically, we will still have another six months after March; however, we fully intend to close it well before that. We expect to complete it by June.

    — Rakesh Khanna

Profitability

  • Appliances Segment Break-even Profitability · sometime next year · Low confidence break-even
    We have to.

    — Rakesh Khanna

Capex

  • Greenfield Plant Proposal Finalization Capex · earlier than end of this calendar year · High confidence complete proposal
    As of now, we are still exploring. We have started assembly in Jammu plant, but we should soon come out with a complete proposal for the new setup. ... Yes, it should be earlier than end of this calendar year.

    — Rakesh Khanna

Exports

  • International Competition Readiness Exports · 2 to 3 years · Medium confidence compete with international manufacturers
    And I believe it's going to take some time, at least 2 to 3 years, by the time we can reach that scale and start competing with international manufacturers.

    — Rakesh Khanna

Market context

  • Sales Growth Revenue · next year · Medium confidence double-digit
    Yes, it should be double digit.

    — Rakesh Khanna

What to watch in Q4 FY26

Appliances segment recovery and break-even progress

next year
Current Revenue declined by 7%, gross margins contracted by 120 bps
Target Improved revenue growth and progress towards break-even

Why it matters

Recovery of the appliances segment is crucial for overall profitability and diversified growth, as it currently faces significant headwinds.

In appliances, we understand that we are under a pressure. Also, the season has not been supporting... We will recover in appliances...

Risks & concerns

  • Appliances segment demand and margin pressure

    high

    Appliances revenue declined by 7% and gross margins contracted by 120 bps due to unfavorable weather, blocked inventory, muted demand, and unfavorable product mix.

    Management acknowledged

  • Raw material cost inflation and competitive pricing

    medium

    Rising raw material costs are leading to margin pressure, as larger competitors maintain prices, impacting profitability.

    Management acknowledged

  • Competition from larger players in appliances

    medium

    Smaller players like Singer face bigger headwinds as larger players push channels harder during periods of muted demand.

    Management acknowledged

Q&A highlights

7 direct
Sewing machine market size and imports Direct
The total quantity is approximately 41 lakh per year and broadly, these numbers are Rs 31 lakh includes the household and the artisan machines. And around Rs. 10 lakh is the Industrial Sewing Machines.

Provides clarity on the overall size and composition of the Indian sewing machine market, which was a point of analyst inquiry based on recent import data.

Asked by Laksh

Impact of QCO removal on textile machinery Direct
The textile machinery that you are referring to, on which the QCO was there, was largely the category in which we are not present today.

Clarifies that the recent removal of Quality Control Order (QCO) on certain textile machinery does not pose a direct threat to Singer India's current product portfolio.

Asked by Laksh

Timeline for completing the ₹200 crore PMY order Direct
So, technically, we will still have another six months after March; however, we fully intend to close it well before that. We expect to complete it by June.

Gives a specific timeline for the execution of a significant government order, which is a key revenue driver.

Asked by Laksh

Progress on greenfield plant setup Direct
As of now, we are still exploring. We have started assembly in Jammu plant, but we should soon come out with a complete proposal for the new setup.

Indicates the company's strategic move towards expanding manufacturing capabilities and localizing production, aligning with 'Make in India' initiatives.

Asked by Dilip Jain

Sales product mix for Q3 Direct
the ZigZag Machines were 16%, Straight Stitch were 30%, Artisan was 24%, Industrial was 13%, and attachments and the accessories was 17%.

Provides a detailed breakdown of revenue contribution by different sewing machine categories, offering insight into product performance and strategic focus.

Asked by Dilip Jain

Appliance segment break-even timeline Partial
We have to.

Highlights management's commitment to achieving profitability in the currently struggling appliance segment, but without a firm timeline or detailed plan.

Asked by Santosh Kumar

Export potential for new products (steam station, CloudX fan) Direct
Yes, it is possible, but our focus remains on Indian market as of now. With the bandwidth that we have, we would like to deploy most of the bandwidth on India as of now, because the opportunity is very large here.

Clarifies the company's immediate strategic focus on the domestic market despite potential export opportunities for innovative products, indicating resource allocation priorities.

Asked by Ashok Jain

Dividend Payout Policy Direct
As of now, we are not giving any dividend, and the Board is clear that we have to be on the growth path, and we have to conserve our resources for planning for investment for growth.

Communicates the company's capital allocation strategy, prioritizing reinvestment for growth over immediate shareholder returns via dividends.

Asked by Harshit

2 min read 5 chapters

Detailed narrative

Strong Q3 FY26 Performance Driven by Sewing Machines

Singer India delivered a robust Q3 FY26, with revenue growing by 53% to ₹161 crores. This strong top-line growth translated into significant profitability improvements, with Adjusted EBITDA increasing by 269% to ₹9.6 crores and Adjusted PBT surging by 310% to ₹8.2 crores. The company's year-to-date revenue stands at ₹391 crores, a 26% increase over the previous year, with YTD Adjusted EBITDA and PBT growing by 105% and 132% respectively.

Sewing Machine Segment Outperforms Across Channels

The sewing machine segment was the primary growth engine, recording a robust 75% revenue growth in Q3. This was supported by a 34% growth in the trade channel and strong performance from Zigzag machines, which showed 30% YTD growth. Industrial sewing machines also grew by over 65% in the quarter and 24% YTD, indicating market share gains despite muted industry growth. The company also highlighted its number one position in the e-commerce channel for sewing machines, which grew over 24% YTD.

Appliances Segment Faces Headwinds and Margin Contraction

In contrast to sewing machines, the appliances segment experienced a 7% decline in revenue during Q3. This was attributed to unfavorable weather conditions, blocked inventory in trade, and overall muted demand. The segment's gross margins contracted by 120 basis points, primarily due to an unfavorable product mix with lower sales of high-margin products. Despite these challenges, the fans category within appliances showed resilience, achieving 38% growth in Q3, and the company is actively working to reduce dependence on high-cost channels while strengthening its e-commerce presence.

Strategic Initiatives and Operational Developments

Singer India continues its strategic focus on product innovation, dealer engagement, and capability building. The company has introduced new products like the 'steaminator' premium steam iron and well-received exhaust fans, with plans for more listings to drive appliance growth. The company also relocated to a new office in Vasant Kunj, Delhi, designed to foster openness and digital enablement. Furthermore, Singer India has been certified as a great place to work for the third consecutive year, reflecting positive outcomes from its focus on team capability.

Capital Allocation Focused on Growth and Liquidity

The company's capital allocation strategy prioritizes growth and resource conservation, opting not to issue dividends currently. Singer India generated ₹13 crores in net operating cash flow during Q3, contributing to a healthy cash and bank balance of ₹96.13 crores as of December 31, 2025. The company is actively exploring a greenfield plant setup, with a complete proposal expected earlier than the end of the calendar year, and has started assembly operations in its Jammu plant, reinforcing its 'Make in India' commitment.

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