Singer India — Q4 FY26 earnings call

Call held 29 May 2026

Management summary

Singer India delivered strong Q4 FY26 results, with revenue up 37% to Rs. 166.3 crores and EBITDA up 49% to Rs. 9.3 crores, primarily driven by robust performance in the Sewing Machine business. Despite challenges in the Appliances segment and inflationary pressures, the company maintained its growth trajectory and gained market share. Management outlined plans for a new manufacturing facility and expressed confidence in future profitability, while also addressing concerns about capital allocation and promoter intentions.

Highlights

  • Q4 revenue grew by 37% to Rs. 166.3 crores, demonstrating strong momentum.

  • Q4 PBT increased by 43% to Rs. 8 crores and EBITDA grew by 49% to Rs. 9.3 crores.

  • FY26 revenue reached Rs. 557 crores, a 29% YoY increase, with adjusted EBITDA growing 76% to Rs. 22.2 crores.

  • The Sewing Machine category showed robust growth of 45% in Q4 and over 40% for the full year, driven by Zigzag Machines and industrial sewing machines.

  • The Fan Business, a sub-segment of Appliances, grew by around 50% in Q4, with positive initial traction and strong distributor partnerships.

Concerns

  • The Appliances segment remained under pressure due to unfavorable weather, blocked inventory, and muted demand, leading to a segment result lower by approximately Rs. 2 crores in Q4.

  • Geopolitical situations, steep increases in commodity prices, and labor shortages impacted supply chains and demand, requiring the company to absorb raw material price increases on fixed-price government contracts.

  • Management was evasive regarding persistent market rumors about promoter exit or M&A discussions, which could be an overhang on the stock.

Key financials

2 periods

Q4

  • Revenue
    ₹166.3 Cr
    YoY +37%
  • PBT
    ₹8 Cr
    YoY +43%
  • EBITDA
    ₹9.3 Cr
    YoY +49%

FY26

  • Revenue
    ₹557 Cr
    YoY +29%
  • EBITDA
    ₹21.5 Cr
    YoY +70%
  • PBT
    ₹17.3 Cr
    YoY +73%
  • Adjusted EBITDA
    ₹22.2 Cr
    YoY +76%
  • Adjusted PBT
    ₹18.1 Cr
    YoY +80%

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% Q4 Growth40% FY Growth
  • Appliances
    10% Q4 Revenue Growth₹-2 Cr Q4 Segment Result
  • Fan Business (within Appliances)
    50% Q4 Growth

Capital allocation

high confidence
  • Capex ₹90 Cr
    • New factory in Bhiwadi, Rajasthan, primarily for manufacturing ZigZag machines, Industrial Sewing Machines, and selected consumer appliances
    In 3 years, the capex can go as high as Rs. 90 crores. But as of now, I'm not committing because we are going one step at a time.
  • Dividend ₹0.4/share (final)
    Our return on capital employed is less, and we're also sitting on almost Rs. 83 crores of cash, but the dividend you have announced is only Rs. 0.40, right, if I'm not wrong.
  • Liquidity Cash ₹83 Cr Cash has been sitting on the balance sheet since 2023, with plans to deploy it for positive opportunities.
    Our return on capital employed is less, and we're also sitting on almost Rs. 83 crores of cash, but the dividend you have announced is only Rs. 0.40, right, if I'm not wrong. Why don't you pay out a larger one-time dividend? You have cash, and that will increase your return on capital employed (ROCE). That will help give back cash to shareholders. And since the business is generating cash and good margins, you always have access to debt to fund any capex that you plan. So, what's you think about it? Because I'm seeing that since 2023, we have had around Rs. 80 crores of cash. What's the use of that?

Guidance & targets

Capex

  • Total Capex Capex · next 3 years · Low confidence Rs. 90 crores
    In 3 years, the capex can go as high as Rs. 90 crores. But as of now, I'm not committing because we are going one step at a time.

    — Rakesh Khanna

Other

  • Government Supply Completion Other · Before beginning of H2 FY27 · High confidence 100% completion of remaining 40%
    We have already completed more than 60% of the government supply, and the balance 40% remains. ... Before the beginning of the second half, we should complete the rest of the order.

    — Rakesh Khanna

Capacity

  • ZigZag Machines Production Commencement Capacity · Second half of the year (FY27) · High confidence Production commenced
    We have already leased the premises for our new factory in Bhiwadi, Rajasthan, and we expect production to commence from second half of the year in this new factory.

    — Rakesh Khanna

Profitability

  • Appliances Business Profitability Profitability · Future · Low confidence Very profitable
    I will not be able to comment exactly on future profits, but I can assure you of one thing: we are very confident that the Appliances Business is going to be a very profitable business for us because we believe Singer is a great brand.

    — Rakesh Khanna

Market Share

  • Sewing Machine Market Share Market Share · Future · Medium confidence Maintain growth momentum
    So, we will try to continue to maintain the kind of growth momentum that we have, and we are reasonably confident that we have the capability to sustain this kind of growth momentum.

    — Rakesh Khanna

Business Mix

  • Appliances Business Proportion Business Mix · Next 1-2 years · Medium confidence 20-25%
    We have generally been in the range of 20-25% in Appliances Business and around 75-80% in Sewing Machines Business, depending on the quarter and season.

    — Rakesh Khanna

What to watch in Q1 FY27

Completion of government supply order

Before beginning of H2 FY27
Current >60% completed, 40% remains
Target 100% completion

Why it matters

Timely execution of the remaining government order is crucial for revenue recognition and profitability, especially given its fixed-price nature.

We have already completed more than 60% of the government supply, and the balance 40% remains. ... Before the beginning of the second half, we should complete the rest of the order.

Risks & concerns

  • Geopolitical situation, commodity price inflation, and labor shortages

    high

    Led to steep increases in commodity prices and labor shortages, resulting in supply shortages and demand disruption, impacting Q4 performance.

    Management acknowledged

  • Uncertainty due to promoter exit rumors

    high

    Persistent market rumors about the promoters (Retail Holdings (India) BV) looking to exit create an overhang on the stock, with management refusing to comment on M&A or sellout discussions.

    Analyst deflected

  • Underperformance and profitability challenges in the Appliances segment

    medium

    The segment remained under pressure due to unfavorable weather, blocked inventory, muted demand, and the impact of EPR costs, leading to a Q4 segment result lower by Rs. 2 crores.

    Management acknowledged

  • Fixed-price government contracts amidst rising raw material costs

    medium

    Government orders are fixed-price, meaning any increases in raw material prices due to inflation must be absorbed by the company, potentially impacting margins.

    Analyst acknowledged

Q&A highlights

5 direct, 1 evasive
Promoter (Retail Holdings (India) BV) exit rumors and involvement in M&A/sellout discussions. Evasive
I will not be able to comment on any talks outside. To my knowledge, there is nothing that I can comment on. ... I cannot either confirm or deny anything. There is nothing that I can talk on this subject. ... Such are the questions I am not allowed to answer anywhere, and I am sure you understand that these matters are confidential. Therefore, there is nothing that I can talk about, and I would appreciate it if such questions are not asked also.

Management's strong refusal to comment on persistent rumors about promoter exit or M&A activity highlights a significant and sensitive potential overhang for the stock, leaving investors with uncertainty.

Asked by Amrut Kalantri

Utilization of Rs. 83 crores cash on the balance sheet and the dividend policy. Partial
In terms of the cash lying with us, we are clear that we are going to deploy the cash for positive opportunities, and there are many opportunities coming our way. We are exploring the opportunities, and we do plan to invest this cash profitably in catapulting the organization to the new level.

Analyst questioned the company's capital allocation strategy given a substantial cash balance and a relatively low dividend, prompting management to indicate future investment plans without specific details.

Asked by Amrut Kalantri

Impact of raw material price inflation on fixed-price government contracts. Direct
They are fixed-price orders, and we cannot change the price there. ... So, whatever increase happens in raw material prices, we have to absorb it. Am I right? ... We have to absorb it. Absolutely.

This clarifies a direct margin risk for the company's government order book, as any commodity cost increases cannot be passed on to the customer.

Asked by Ashok

Appliances segment profitability and the potential for cooling products to turn losses into break-even in Q1 FY27. Partial
I will not be able to comment exactly on future profits, but I can assure you of one thing: we are very confident that the Appliances Business is going to be a very profitable business for us because we believe Singer is a great brand. We just need to make a few corrections.

Analyst probed for specific profitability targets for the struggling Appliances segment, but management provided a qualitative assurance of future profitability without committing to a timeline or numbers.

Asked by Ashok

Sewing Machine industry growth rate and Singer's market share gains. Direct
to the best of our knowledge and understanding, because there is no formal data available, the market has been growing at a rate of 4% to 6%. We have gained significantly for a few reasons. ... The growth has mainly come through increase in market share across channels, be it trade or e-commerce.

Provides crucial context that Singer's strong growth in sewing machines is primarily driven by capturing market share in a relatively slow-growing industry, validating their strategic initiatives.

Asked by Kush

Breakup of Sewing Machine revenue by category (ZigZag, Classic Black, Industrial). Direct
In our case, for the year, ZigZag is approximately 20%, classic Black Machines is approximately 55%, and Industrial and accessories put together are around 28%.

Offers valuable insight into the company's product mix within its core Sewing Machine segment, highlighting the contribution of different categories to overall revenue.

Asked by Kush

The timeline for completing the remaining 40% of the government supply order. Direct
We have already completed more than 60% of the government supply, and the balance 40% remains. ... Before the beginning of the second half, we should complete the rest of the order.

Clarifies the remaining portion and expected completion timeline for a significant government contract, providing visibility on future revenue recognition.

Asked by Kush

The strategy for the Sewing Machine business mix and the expected proportion of Appliances vs. Sewing Machines. Direct
The business mix is not going to shift dramatically in one or two years because our growth ambitions are equal in both categories. ... We have generally been in the range of 20-25% in Appliances Business and around 75-80% in Sewing Machines Business, depending on the quarter and season.

Management clarifies that despite growth ambitions in both segments, the overall business mix is expected to remain relatively stable in the near term, indicating continued reliance on the Sewing Machine segment.

Asked by Laxman Pandey

3 min read 5 chapters

Detailed narrative

Strong Q4 and FY26 Financial Performance

Singer India reported robust financial results for Q4 FY26, with revenue growing 37% year-over-year to Rs. 166.3 crores. Profit Before Tax (PBT) increased by 43% to Rs. 8 crores, and EBITDA saw a 49% rise, reaching Rs. 9.3 crores. For the full financial year 2026, the company's revenue stood at Rs. 557 crores, marking a 29% increase from the previous year. Adjusted for a one-time exceptional cost of Rs. 73 lakhs, FY26 EBITDA grew 76% to Rs. 22.2 crores, and PBT increased 80% to Rs. 18.1 crores, reflecting strong growth momentum.

Sewing Machine Business Drives Growth and Market Share Gains

The Sewing Machine category was a primary growth engine, achieving a robust 45% growth in Q4 and over 40% for the entire fiscal year. The trade channel for sewing machines grew nearly 20% in Q4 and more than 15% annually. Zigzag Machines, identified as the future of household sewing, continued their strong performance with over 30% growth, while industrial sewing machines grew over 13% in Q4 and more than 20% for the full year. Management noted that the overall sewing machine market is growing at 4-6%, indicating Singer's growth is largely driven by significant market share gains across all channels.

Appliances Segment Faces Headwinds, Strategic Shift to E-commerce

The Appliances segment experienced pressure in Q4 FY26 due to unfavorable weather conditions, blocked trade inventory, and muted demand, resulting in a segment result lower by approximately Rs. 2 crores. This was also impacted by EPR costs and investments in the Fan Business. Despite these challenges, the Appliances segment's revenue grew around 10% in Q4, primarily driven by new e-commerce product ranges and the Fan Business, which itself grew by about 50%. The company is strategically reducing its dependence on high-cost channels like modern trade and strengthening its presence in the fast-growing e-commerce channel.

New Manufacturing Facility and Phased Capex Plans

Singer India has initiated the assembly of ZigZag Machines in India and leased premises for a new factory in Bhiwadi, Rajasthan. Production at this facility is expected to commence from the second half of FY27, initially focusing on ZigZag machines, with future plans to include assembly and manufacturing of Industrial Sewing Machines and selected consumer appliances. The company anticipates a long-term capex of up to Rs. 90 crores over the next three years, but plans a phased approach, starting lean with assembly and outsourcing components before manufacturing critical components in-house over a three-year journey.

Capital Allocation Strategy and Liquidity

The company holds a significant cash balance of approximately Rs. 83 crores, which has been on its balance sheet since 2023. Management articulated a clear strategy to deploy this cash for positive opportunities and invest it profitably to elevate the organization. A dividend of Rs. 0.40 per share was announced. Additionally, Rs. 11.6 crores was capitalized as intangible assets for manufacturing rights acquired in November 2025, and Rs. 7 crores of fixed deposits are classified as non-current financial assets, reflecting a focus on strategic investments and maintaining liquidity.

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