Singer India Limited

Singer India delivered a strong rebound in Q2 FY26, with overall revenue growing by 30% and Profit Before Tax (PBT) increasing nearly threefold, from ₹1.67 crores to ₹5.22 crores. This performance was primarily driven by the Sewing Machine category, which saw a 45% increase in revenue. Despite a steep drop in GST for sewing machines from 12% to 5%, the primary offtake was subdued during the transition period, but the company managed to achieve significant growth.

The Sewing Machine category was the star performer, with a 45% revenue growth. The promising Zigzag segment grew by 34%, and Cast-Iron Straight-Stitch Machines also showed impressive growth in the trade channel. A major milestone was achieved with the receipt of a license to manufacture ZigZag machines locally in India, which were previously imported. This local manufacturing is expected to boost demand, make products more affordable, and open up export opportunities. The company's E-commerce business also maintained strong momentum, growing over 40% in Q2.

The Appliances business faced significant pressure, with revenue declining by 17% and gross margins falling by 340 basis points. This was attributed to unfavorable weather conditions, blocked trade inventory, and a wait-and-watch sentiment due to GST rate changes. The segment has incurred losses of approximately ₹5.5 crores in each H1 of this year. However, management expressed confidence that these headwinds are temporary and expects the business to return to profitability soon, with H2 FY26 anticipated to be better than H1.

The company's Board approved a preferential issue of 5,65,397 equity shares to VSM (SVP Worldwide, the brand owner) at ₹79.59 per share, raising ₹4.5 crores. This investment will partly finance the expansion of manufacturing facilities, design development, and equipment for sewing machines. The Jammu facility's installed capacity is 400,000 machines, and it will be expanded further. A new greenfield project for high-technology ZigZag machines is also being considered, with a new facility expected to be set up within 8-12 months.

The total sewing machine market in India is estimated at ₹3,000 crores, with industrial machines accounting for 58%. Singer sees a huge opportunity in the ZigZag segment, which currently represents less than 10% of the household market. The company significantly expanded its distributor network from over 1,000 in Q4 last year to over 6,300 this quarter, primarily by mapping primary billing points and improving service levels. Management believes this expanded reach and strong brand acceptance will drive future growth.