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Singer India Limited — Q1 FY26 earnings call

Call held 11 Aug 2025

Company page: Singer India share price, financials & guidance record

Management summary

SINGER reported a challenging Q1 FY26 with an overall revenue drop, primarily driven by declines in traditional cast iron sewing machines and the appliances segment due to seasonal factors. However, the company saw strong growth in the zigzag sewing machine segment and secured a substantial government order. Management expressed confidence in overcoming the Q1 dip, focusing on new product launches, expanding distribution, and achieving double-digit growth with stable operating margins in the coming periods, despite ongoing legal matters concerning the large order.

Highlights

Zigzag sewing machine segment showed strong revenue growth of 38% in Q1 FY26, driven by new models and global brands.
Secured a significant purchase order of 2.8 lakh machines, valued at approximately ₹200+ crores, under the Pradhan Mantri Vishwakarma Rozgar Yojana (PMY), with deliveries already commenced.
Management maintains gross margin at the same level as the corresponding quarter last year for the sewing machine segment.
Company is launching a full portfolio of 68 SKUs in the fans category within the next 2-3 months, aiming for significant growth.
Confident of achieving healthy double-digit revenue growth for the overall company this year and next year, with no operating margin compression.

Concerns

Overall sewing machine revenue declined by 4% in Q1 FY26, primarily due to a decline in the traditional cast iron segment.
Appliances revenue declined by 14% in Q1 FY26, leading to a segment loss of ₹2.36 crores, mainly due to a shorter summer and intermittent rains impacting cooling product sales and causing high trade inventory.
Gross margin in appliances dropped by 100 basis points due to an adverse product mix from lower sales of high-margin cooling products.
The PMY order, while significant, is currently sub judice in court, though there is no stay on supply.
The Delhi office experienced a fire incident, though business operations were unaffected and data was secure.

Key financials

01 Overall Sewing Machine Revenue — -4%YoY
02 Appliances Revenue — -14%YoY
03 Appliances Gross Margin —

What they filed

Q1 FY27: revenue up 56.9%, net profit up 227.1% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	106	106	122	92	138 +30%	161 +53%	166 +37%	145 +57%
Expenses	105	105	118	96	134	153	159	141
EBITDA	1	1	4	-4	4 +500%	8 +858%	7 +67%	4 +196%
Margin	1%	1%	3%	-4%	3%	5%	4%	2%
Other income	2	2	2	1	2	1	2	2
Interest	0	0	0	0	0	0	0	0
Depreciation	1	1	1	1	1	1	1	1
Profit before tax	2	2	6	-3	5 +213%	7 +269%	8 +43%	4 +225%
Tax rate	24%	24%	28%	-27%	27%	26%	27%	26%
Net profit	1	2	4	-2	4 +202%	5 +257%	6 +46%	3 +227%
EPS	0.21	0.24	0.66	-0.38	0.62	0.87	0.95	0.48

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 Machine - Zigzag
38% Revenue Growth
Sewing Machine - Traditional Cast Iron
— Revenue Growth
Industrial Sewing Machine
29% Revenue Growth (FY25)0% Revenue Growth (Q1 FY26)
Domestic Appliances
₹2.36 Cr Segment Loss

Order book

high confidence

Total value

₹200 Cr

as of 2025-06-30 range

Inflow this quarter

₹200 Cr

Execution

execution of this tender is about 12 months

Composition

Pradhan Mantri Vishwakarma Rozgar Yojana (PMY) (scheme) ₹200 Cr

Cancellations & deferrals

deferred: PMY order is currently sub judice in the Court, though no stay on supply and deliveries commenced.

The company has secured a significant order under the PMY scheme, with deliveries underway, despite the order being sub judice. Management is confident in fulfilling the order and expects it to be largely incremental business.

Source: Prepared remarks

Capital allocation

high confidence

Liquidity Liquidity disclosed Cash will be utilized for inventory procurement and sales cycle, with no significant upfront investment required for new product categories.

Rakesh Khanna - Again, this is not somewhere where there will be high upfront investment. The cash will be only to the extent of inventory that we will pick, procure and what we will sell. So, it's only the regular cash cycle of a sales and purchase cycle that will come in place. But beyond that, there is no other cash that we see is going to get blocked into this.

Guidance & targets

Sewing Machine

Revenue Growth Sewing Machine · coming quarters · Medium confidence more than offsetting Q1 decline

Overall, sewing machine revenue declined by 4%, primarily driven by cast iron segment decline, but we are confident of more than offsetting this in the coming quarters.

— Rakesh Khanna, Vice Chairman and Managing Director

Overall Company

Growth Overall Company · rest of the year · Medium confidence delivering on our plans

Our underlying growth drivers remain strong, and we are confident of delivering on our plans for the rest of the year.

— Rakesh Khanna, Vice Chairman and Managing Director
EBITDA Margin Overall Company · long-term vision · Medium confidence 8 to 10%

an EBITDA margin of 8 to 10% is the kind of target any company should have, and we should be looking at something similar. That is my long-term vision.

— Rakesh Khanna, Vice Chairman and Managing Director
Revenue Growth Overall Company · this year and next year · Medium confidence fair, healthy or double-digit growth

I think as of now, if I look in the short term with the kind of orders that we have in hand, it is simple that we should be looking at a fair, healthy or double-digit growth that should be coming to us this year and next year.

— Rakesh Khanna, Vice Chairman and Managing Director

Home Appliances - Fans

Product Portfolio Home Appliances - Fans · next 2 to 3 months · High confidence full portfolio of 68 SKUs

in fans, we are launching a full portfolio of 68 SKUs, which will be launched in the period of the next 2 to 3 months.

— Rakesh Khanna, Vice Chairman and Managing Director

Appliances Segment

Profitability Appliances Segment · within this year · Medium confidence break-even and thereafter gets into the profit category

within this year, our aim is to ensure that the appliances comes to a break-even and thereafter gets into the profit category.

— Rakesh Khanna, Vice Chairman and Managing Director

Industrial Sewing Machine

Revenue Mix (as % of total sewing machine revenue) Industrial Sewing Machine · next 2 to 3 years · High confidence 30%

Previously 17% → 30%

So where can this number change to next, say, 2 to 3 years? Rakesh Khanna- 30% industrial...

— Rakesh Khanna, Vice Chairman and Managing Director
Growth Industrial Sewing Machine · coming few years · Medium confidence healthy double-digit growth

we're confident that we will bring in a healthy double-digit growth in the coming few years.

— Rakesh Khanna, Vice Chairman and Managing Director

Margins (Operating Level)

Compression Margins (Operating Level) · High confidence do not see any compression

at operating level, I do not see any compression in margin.

— Rakesh Khanna, Vice Chairman and Managing Director

What to watch in Q2 FY26

PMY order fulfillment progress and legal resolution

Next quarter

Current Deliveries commenced, order sub judice

Target Continued deliveries, resolution of court case

Why it matters

The PMY order represents a significant revenue opportunity (₹200+ crores) for the sewing machine segment, and its smooth execution and legal resolution are crucial.

While taking note of the fact that the PMY order is currently sub judice in the Court, there is no stay on supply, and we have already commenced deliveries as per the buyer's schedule.

Risks & concerns

PMY order currently sub judice
medium

The significant PMY order is currently under court observation, though there is no stay on supply and deliveries have commenced. Management is confident in compliance.

Management acknowledged
Seasonal impact on cooling product sales and high trade inventory
medium

A shorter summer and intermittent rains negatively impacted cooling product sales, leading to higher trade inventory and affecting appliance revenue and gross margins.

Management acknowledged
Dumping of pre-used industrial machines in India
medium

The company is representing to the government regarding the issue of pre-used industrial machines being imported, expecting BIS standards to help mitigate this.

Management acknowledged
Fire incident at Delhi office
low

A fire occurred at the Delhi office, but no one was injured, business operations were unaffected due to data being stored on the cloud, and a temporary office has been set up.

Management acknowledged
BIS licensing for zigzag machines
low

Management is confident in maintaining sufficient stock and uninterrupted supply for zigzag machines despite ongoing BIS licensing processes.

Management acknowledged

Q&A highlights

7 direct

Home Appliance revenue target in the next 2-3 years Partial

However, a lot will depend on the kind of traction we build up on the fans business, which is going to be our growth driver. So, it will be difficult to give you exact figures, but the growth from both the segments is going to be high, and that is going to result in not a very significant shift in the mix of sewing machine to appliances business.

Analyst sought specific revenue mix targets, but management indicated high growth in both segments without providing exact figures, highlighting the fan business as a key driver.

Asked by Anurag Chheda

PMY order fulfillment and incremental sales Direct

Yes, we are fully capable of fulfilling the order. We will fulfil in line with the delivery instructions that we will receive from our customer... will it cannibalize any of the existing sales? The answer is yes, to some extent it will, but to a large extent it will be incremental.

Clarifies the company's capability to execute the large government order and confirms that the sales from this order will be largely incremental.

Asked by Ashok Jain

Loss in domestic appliances segment in Q1 FY26 Direct

Most of the loss that has come is because the sale of the cooling products was very low as compared to last year... the unfavourable season impacted us. That is the basic reason for the loss in sales.

Provides a clear explanation for the ₹2.36 crore loss in the domestic appliances segment, attributing it to adverse seasonal conditions.

Asked by Ashok Jain

Singer brand recall and strategy for Home Appliances Direct

Singer is a great brand that every time we have done any kind of a survey, we find that Singer is built on a lot of trust... We have to just build up with a strong product portfolio, strong distribution, and it will be a winning mix.

Addresses how Singer plans to leverage its strong brand legacy and emotional connect to build a competitive presence in the home appliances market through product and distribution.

Asked by Praneeth

Sewing machine business growth levers and margin improvement Direct

In fact, it's more than 2.5% margin improvement, and that was our first step one how do we get our margins right. Now, we talk about growth, and as I see, the growth is in two parts: it is the top-line growth and the profit growth. Our profits are significantly growing. It is now the top-line growth that's going to come in.

Provides insight into the company's strategy for driving both top-line and profit growth in its core sewing machine business, building on prior margin improvements.

Asked by Dhwanil Desai

Targeted revenue mix for industrial vs non-industrial sewing machines Direct

So where can this number change to next, say, 2 to 3 years? Rakesh Khanna- 30% industrial...

Reveals a specific target to increase the share of the industrial sewing machine segment from 17% to 30% within 2-3 years, indicating a strategic focus on this high-growth area.

Asked by Tushar Khurana

Manufacturing strategy (in-house vs outsourcing) Direct

If good vendors can deliver quality product on time and at the right cost, we prefer outsourcing, so we can focus on other growth areas. If there's a strategic advantage to manufacturing in-house, we will do it.

Clarifies the company's asset-light approach, prioritizing outsourcing when efficient to focus internal energy on growth areas, while retaining the option for in-house manufacturing strategically.

Asked by Tushar Khurana

Competition with Chinese brands in industrial sewing machines Direct

we will work with our strengths and one of the biggest strengths that we have is that we are Singer, we have the kind of legacy, and we have the kind of distribution network that we have in India and the kind of bonding that we have.

Explains Singer's competitive strategy against dominant Chinese players in the industrial segment, leveraging its brand legacy, distribution network, and customer relationships.

Asked by Nikhil

3 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Overview

SINGER experienced an unusual Q1 FY26 with an overall drop in revenue, impacting profitability. The sewing machine segment saw a 4% decline in revenue, primarily due to the traditional cast iron segment. The appliances segment faced a 14% revenue decline, resulting in a ₹2.36 crore loss, attributed to a shorter summer and intermittent rains affecting cooling product sales and leading to higher trade inventory. Despite these challenges, management expressed confidence that the revenue drop is transitory and not indicative of underlying growth momentum.

Sewing Machine Segment Dynamics

The zigzag sewing machine segment demonstrated strong growth, with revenue increasing by a healthy 38% in Q1 FY26, supported by the introduction of Husqvarna Viking sewing-cum-embroidery machines. In contrast, the traditional cast iron segment experienced a decline. The industrial sewing machine category, while showing over 29% revenue growth in FY25, remained flat this quarter due to high trade inventory. Management aims for healthy double-digit growth in the coming years for the overall sewing machine business, targeting a 30% industrial segment mix within 2-3 years from the current 17%.

Appliances Segment Challenges and Growth Strategy

The appliances segment's Q1 performance was significantly impacted by adverse weather conditions, leading to a 14% revenue decline and a 100 basis point drop in gross margin. To counter this, SINGER is making a strategic push into the high-potential fan segment, planning to launch a full portfolio of 68 SKUs within the next 2-3 months. The company's goal is to bring the appliances segment to break-even and then into profitability within the current fiscal year, leveraging its strong brand trust and building a robust product portfolio and distribution network.

Pradhan Mantri Vishwakarma Rozgar Yojana (PMY) Order

SINGER secured a significant purchase order for 2.8 lakh machines, valued at approximately ₹200+ crores, under the Pradhan Mantri Vishwakarma Rozgar Yojana. This order represents 70% of the total requirement under the scheme. While the order is currently sub judice, there is no stay on supply, and deliveries have already commenced. Management is confident in its ability to fulfill the order within the 12-month execution timeline and expects this to be largely incremental business, providing a strong footing for further distribution expansion.

Strategic Growth Drivers and Market Outlook

The company is focusing on innovation across all sewing machine categories, including colored machines and redesigned models in the black segment, and multi-needle embroidery machines. For appliances, the focus is on fans, coolers, heating products, and kitchen appliances, with 68 new fan SKUs planned. SINGER aims for a long-term EBITDA margin of 8-10% and does not foresee operating margin compression. The company plans to build its e-commerce presence, starting with cities, to ensure proper price positioning.

Operational Efficiency and External Factors

Overall expenses were well controlled, with increases mainly due to higher brand promotion, e-waste compliance, and frontline support for growth areas. A fire incident at the Delhi office did not affect business operations or data. On the manufacturing front, SINGER prefers outsourcing to good vendors to focus on growth areas, but has expanded capacity at Jammu to ensure self-reliance for large orders like PMY. The company is also advocating against the dumping of pre-used industrial machines and expects BIS standards to help.

This is an AI-generated summary of a publicly available earnings call transcript.

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