Singer India Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Singer India Limited reported a strong Q3 FY26, driven by robust growth in its sewing machines segment, with revenue up 53% and adjusted PBT up 310%. The appliances segment, however, faced headwinds, experiencing a 7% revenue decline and margin contraction. The company maintains a healthy cash balance and is focused on strategic initiatives, including completing a significant government order and exploring greenfield manufacturing, while navigating competitive pressures in appliances.

Highlights

  • Revenue grew by 53% to ₹161 crores in Q3 FY26, and YTD revenue reached ₹391 crores, up 26% YoY.

  • Adjusted EBITDA increased by 269% to ₹9.6 crores in Q3, with YTD adjusted EBITDA growing 105% to ₹13.1 crores.

  • Adjusted PBT grew by 310% to ₹8.2 crores in Q3, and YTD adjusted PBT increased 132% to ₹10.2 crores.

  • Sewing machines segment recorded robust growth of 75% in Q3, with the trade channel growing 34% and Zigzag machines showing 30% YTD growth.

  • Industrial sewing machines grew over 65% in Q3 and 24% YTD, indicating market share gains despite muted industry growth.

  • The company generated ₹13 crores in net operating cash flow during Q3 and holds ₹96.13 crores in cash and bank balances as of December 31, 2025.

  • Fans category achieved 38% growth in Q3, with positive initial traction and strong distributor partnerships.

Concerns

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

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

  • A one-time exceptional cost of ₹91 lakhs was incurred in Q3 due to a change in labor code.

  • Raw material cost inflation and competitive pricing pressure are impacting the consumer durables/appliances segment, making break-even challenging in the near term.

Key financials

2 periods

Headline

  • Revenue
    ₹161 Cr
    YoY +53%
  • EBITDA (Reported)
    ₹8.7 Cr
    YoY +234%
  • EBITDA (Adjusted)
    ₹9.6 Cr
    YoY +269%
  • PBT (Reported)
    ₹7.3 Cr
    YoY +265%
  • PBT (Adjusted)
    ₹8.2 Cr
    YoY +310%
  • YTD Revenue
    ₹391 Cr
    YoY +26%
  • YTD EBITDA (Adjusted)
    ₹13.1 Cr
    YoY +105%
  • YTD PBT (Adjusted)
    ₹10.2 Cr
    YoY +132%
  • Cash & Bank Balances
    ₹96.13 Cr

Q3

  • Net Operating Cash Flow
    ₹13 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
    75% Revenue Growth (Q3)34% Trade Channel Growth (Q3)30% Zigzag Machines Growth (YTD)65% Industrial Sewing Machines Growth (Q3)24% Industrial Sewing Machines Growth (YTD)33% Cast Iron Machines Growth (Q3)24% E-commerce Growth (YTD)16% ZigZag Contribution (Q3)30% Straight Stitch Contribution (Q3)24% Artisan Contribution (Q3)13% Industrial Contribution (Q3)17% Other Attachments & Accessories Contribution (Q3)
  • Appliances
    -7% Revenue Decline (Q3)-120 bps Gross Margin Contraction (Q3)38% Fans Category Growth (Q3)

Order book

high confidence

Total value

₹200 Cr

as of 2025-12-31 quantified

Execution

Expected to complete by June 2026

Composition

  • Government (PMY) (client type) ₹200 Cr 100%
The company is executing a ₹200 crore government order for sewing machines under the Pradhan Mantri Vishwakarma Rozgar Yojana (PMY), with 50% of the total order already allotted and the balance pending. The company secured 70% of the awarded portion and expects to complete the entire order by June 2026.

Source: Q&A

Capital allocation

high confidence
  • Liquidity Cash ₹96.13 Cr The company has ₹96.13 crores in cash and bank balances as of December 31, 2025, and generated ₹13 crores in net operating cash flow this quarter.
    Subhash Chand Nagpal - 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

Profitability

  • Appliances Segment Break-even Profitability · next year · High confidence achieve break-even
    Rakesh Khanna - We have to.

    — Rakesh Khanna

Manufacturing

  • Greenfield Plant Proposal Finalization Manufacturing · earlier than end of this calendar year · Medium confidence finalize plans
    Rakesh Khanna - Yes, it should be earlier than end of this calendar year.

    — Rakesh Khanna

Order Execution

  • PMY Order Completion Order Execution · by June · High confidence complete order
    Rakesh Khanna - 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

International Expansion

  • Export Competitiveness International Expansion · 2 to 3 years · Low confidence achieve cost parity for exports
    Rakesh Khanna - SVP is large but currently, we are seeing it as an opportunity to be developed in some time, because the bigger challenge will be our ability to compete with the global prices. And that will take time, because we will have to really build scale to, to start competing with the global suppliers. And I do not see it earlier than the next 2 years or 3 years.

    — Rakesh Khanna

Market context

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

    — Rakesh Khanna

What to watch in Q4 FY26

PMY Government Order Completion

by June
Current Ongoing, 50% allotted
Target Completed

Why it matters

Completion of the ₹200 crore order will provide a significant revenue boost and demonstrate execution capability.

Rakesh Khanna - 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.

Risks & concerns

  • Appliances Segment Underperformance

    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 Pricing Pressure

    medium

    Raw material prices have moved up, leading to margin pressure, especially in appliances, as larger players hold prices.

    Management acknowledged

  • Export Competitiveness

    medium

    Achieving cost parity to compete with global suppliers for exports will take 2-3 years, limiting immediate international expansion.

    Management acknowledged

Q&A highlights

7 direct
Sewing Machine Market Size and Imports Direct
Although there are no, clear, documented numbers summarized anywhere, my assessment and putting together the numbers in the area where we are present which is the household sewing machines, and the single needle high-speed machine. 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.

Analyst inquired about the overall market size given high import figures; management provided a breakdown of their addressable market segments.

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. It does not include the single needle, because for that, still now, the BIS has still not come in. It does not include the zigzag, where the QCO continues to be there, and does not include straight stitch household and artisan machines, in which the BIS is there, but the QCO is not there.

Analyst asked if the removal of Quality Control Order (QCO) on textile machinery posed a threat; management clarified it does not impact their core sewing machine categories.

Asked by Laksh

PMY Government Order Completion and Next Tender 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. It was a single tender, and as of now, 50% of that was allotted. The balance 50% has still come. We do not have visibility on that but essentially, it will happen as we are able to complete the supplies of the first.

Analyst sought clarity on the timeline for completing the ₹200 crore PMY order and the status of the next tender, providing visibility on future government business.

Asked by Laksh

Greenfield Plant Development Status 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. Yes, it should be earlier than end of this calendar year.

Analyst asked for an update on the greenfield plant, indicating future manufacturing capacity expansion plans are progressing towards finalization this year.

Asked by Dilip Jain

Sales Product Mix for Q3 Direct
So, in the quarter, the ZigZag Machines were 16%, Straight Stitch were 30%, Artisan was 24%, Industrial was 13%, and attachments and the accessories was 17%.

Analyst requested a breakdown of sales by product category, providing insight into the revenue contribution of different sewing machine types.

Asked by Dilip Jain

Revenue Growth Excluding PMY Order Partial
I will not be able to put that, but what I can tell you is that, therefore, I address one thing straight away that my trade sales, which have grown so much, is of course, without PMY, the ZigZag Machines where we have grown so much is without PMY, the Industrial Machine where we have grown by more than 65% is without PMY. So, our growth across the channels, that is in E-commerce, in Trade, across all the categories, is very high.

Analyst questioned the revenue contribution from the government order; management emphasized broad-based growth across other channels and categories, indicating organic strength.

Asked by Harshit

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.

Analyst inquired about the dividend policy; management clearly stated the focus is on growth and resource conservation, implying no dividends in the near term.

Asked by Harshit

Appliances Segment Break-even Timeline Direct
Rakesh Khanna - We have to.

Analyst asked about the possibility of the appliances segment achieving break-even next year; management expressed strong commitment to this target.

Asked by Santosh Kumar

2 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Singer India reported a strong Q3 FY26, with revenue growing by 53% to ₹161 crores. Adjusted EBITDA saw a significant increase of 269% to ₹9.6 crores, while adjusted PBT surged by 310% to ₹8.2 crores. For the year-to-date period, revenue stands at ₹391 crores, a 26% increase over the previous year, and adjusted YTD PBT reached ₹10.2 crores, marking a 132% growth. The company also generated ₹13 crores in net operating cash flow during the quarter, maintaining a healthy cash balance of ₹96.13 crores as of December 31, 2025.

Robust Growth in Sewing Machines Segment

The sewing machines segment was a key growth driver, recording a robust 75% growth in Q3. The trade channel for sewing machines grew by 34%, and Zigzag machines, identified as the future of household sewing, continued their strong performance with 30% YTD growth. Industrial sewing machines also saw significant growth, increasing over 65% in Q3 and 24% YTD, indicating clear market share gains. The e-commerce business for sewing machines also performed strongly, delivering over 24% YTD growth.

Challenges and Strategy in Appliances Segment

The appliances segment faced considerable pressure, with revenue declining by 7% in Q3 and gross margins contracting by 120 basis points. This was attributed to unfavorable weather conditions, blocked inventory, muted demand, and an unfavorable product mix. Despite these headwinds, the newly introduced 'steaminator' and exhaust fans have gained good acceptance, and the fans category achieved 38% growth in Q3. The company is strengthening its presence in e-commerce and expects to recover and achieve break-even in appliances next year.

Update on Government (PMY) Order

Singer India is actively executing a ₹200 crore government order under the Pradhan Mantri Vishwakarma Rozgar Yojana (PMY) for sewing machines. Of the total order, 50% has been allotted, and the company secured 70% of this awarded portion. Management expects to complete the entire order by June 2026, well before the technical deadline of six months after March. The balance 50% of the tender is still pending, and the company awaits further government announcements regarding its allocation.

Manufacturing and Expansion Plans

The company is exploring plans for a new greenfield manufacturing plant, with assembly already initiated at its Jammu facility. A complete proposal for the new setup is expected to be finalized earlier than the end of the current calendar year. This initiative aims to strengthen organizational capabilities, promote a growth mindset, and attract talent. The company remains committed to 'Make in India' and is actively working towards manufacturing critical and high-value components locally.

Market Outlook and Future Growth Drivers

Management expressed confidence in achieving double-digit sales growth for the next year, driven by sustained momentum in sewing machines and anticipated recovery in appliances. They highlighted the success of new product launches designed with an e-commerce-first approach. While the Indian market remains the primary focus due to its large opportunity, the company aims to develop export capabilities to compete globally within 2-3 years, once sufficient scale and cost competitiveness are achieved.

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