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Singer India Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

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

Management summary

Singer India reported a strong Q2 FY26, with revenue up 30% and PBT nearly tripling, primarily driven by a 45% growth in the Sewing Machine category. A significant milestone was achieved with the license to locally manufacture ZigZag machines. However, the Appliances business faced headwinds, with a 17% revenue decline and margin compression, though management expects a recovery in H2.

Highlights

  • Revenue grew 30% YoY, demonstrating a strong rebound.

  • PBT grew nearly 3 times, from ₹1.67 crores to ₹5.22 crores.

  • Sewing Machines revenue increased 45% YoY, with broad-based growth across segments and channels.

  • Received license to manufacture ZigZag machines locally in India, enabling cost-effectiveness and export opportunities.

  • E-commerce business showed strong momentum with over 40% growth in Q2.

  • Cash from operating activities was ₹21 crores for H1 FY26, highest ever half-yearly.

Concerns

  • Appliances business revenue declined 17% YoY due to unfavorable weather, blocked trade inventory, and GST rate change sentiment.

  • Appliances gross margins fell 340 basis points due to an unfavorable product mix (lower sales of higher-margin cooling products).

  • Appliances segment has lost approximately ₹5.5 crores in each H1 of this year.

  • Industrial Sewing Machine category faced challenges due to higher tariffs imposed by the US on garment manufacturers.

Key financials

  1. Revenue Growth 30%
  2. PBT ₹5.22 Cr +212.6%YoY
  3. Sewing Machines Revenue Growth 45%
  4. Appliances Revenue Growth -17%
  5. Appliances Gross Margin Fall 340 bps
  6. Sewing Machine EBIT Margin 11.8%

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 Machine
    45% Revenue Growth11.8% EBIT Margin
  • Appliances
    -17% Revenue Growth340 bps Gross Margin Fall₹5.5 Cr H1 Loss

Order book

high confidence

Total value

₹202 Cr

as of 2025-09-30 quantified

Execution

to be completed by June '27

The PMY order remains subdued, but deliveries are progressing based on dispatch instructions from the government.

Source: Q&A

Capital allocation

high confidence
  • Capex Capex disclosed partly financed by preferential issue to VSM
    • Expansion of manufacturing facility, design development of tools, and equipment for sewing machines ₹4.5 Cr
    This investment will support and partly finance expansion of the manufacturing facility, design development of tools, and equipment for the sewing machines.
  • Liquidity Cash ₹21 Cr Cash from operating activities for H1 FY26 was ₹21 crores, which is being used to set up the factory.
    I congratulate you for generating cash from operating activities at Rs. 21 crores for H1 of 25-26. I think this is one of the highest ever achieved half-yearly. Will this trend continue, and will it help for our capex for putting up the new plant? Rakesh Khanna: Definitely. We have worked on various areas, and if you would have seen, as you rightly noted, it has come from all possible angles. We have been able to improve the cash flow, so that's a good thing. And we'll continue to focus on this. For our factory, we are still in the planning stage. We are sufficiently financed, we have enough cash with us, and this will be used to set up the factory.

Guidance & targets

Order Book

  • PMY Order Completion Order Book · by June 2027 · High confidence ₹202 crores
    But you are aware that this order has to be completed by June '27

    — Rakesh Khanna, Vice Chairman and Managing Director

Manufacturing

  • New ZigZag Manufacturing Facility Setup Manufacturing · within 8-12 months · High confidence 8-12 months
    We're saying anywhere between 8 to 12 months it will take us to set up the entire facility.

    — Rakesh Khanna, Vice Chairman and Managing Director

Profitability

  • Sewing Machine EBIT Margin Profitability · ongoing · High confidence sustainable at 11.75%
    Okay, so this number, for significant time, is sustainable, okay?

    — Rakesh Khanna, Vice Chairman and Managing Director

  • Appliances Business Profitability Profitability · soon · Medium confidence profitable soon
    We're confident we'll make it profitable soon.

    — Rakesh Khanna, Vice Chairman and Managing Director

Seasonal Performance

  • H2 Performance vs H1 Seasonal Performance · H2 FY26 · Medium confidence better than H1
    At a very personal level, yes this is my personal belief. I believe all the weather-related stuff is over, and we should be seeing winter, followed by a good summer.

    — Rakesh Khanna, Vice Chairman and Managing Director

What to watch in Q3 FY26

Appliances Business Profitability

H2 FY26
Current Loss of ~₹5.5 crores in H1 FY26
Target Profitable or reduced losses

Why it matters

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

I'm also confident that this is not a long-term situation for appliances in the country. Consumer appliances are definitely on a growth trajectory. This has been just an intermittent headwind, and this will go away. We should be back on track and the way we made progress last year, we will be back on track.

Risks & concerns

  • Appliances business under pressure

    medium

    Unfavorable weather, blocked trade inventory, and wait-and-watch sentiment due to GST rate change impacted cooling products and overall appliances.

    Management acknowledged

  • Gross margin compression in Appliances

    medium

    Gross margins fell 340 bps due to an unfavorable product mix arising from lower sales of higher-margin cooling products.

    Management acknowledged

  • Challenges for Industrial Sewing Machine category

    medium

    Garment manufacturers faced challenges due to higher tariffs imposed by the US, impacting growth in this segment.

    Management acknowledged

  • GST transition period impact on Sewing Machines

    low

    The primary offtake for sewing machines was subdued during the transition period (Sept 3-22) due to the GST rate change from 12% to 5%.

    Management acknowledged

Q&A highlights

4 direct, 2 evasive
Royalty terms for new license agreement Evasive
the terms of the amended agreement remain confidential, and these are competition-sensitive information, so I'm afraid I will not be able to share these terms with you.

Management declined to disclose specific terms of the new licensing agreement, citing confidentiality, which limits investor insight into future cost structures.

Asked by Avinash

3-year roadmap for brand and distribution spend for household electricals Evasive
this is a very loaded question. I'm afraid I will not be able to speak all this in this forum. Maybe we can connect sometime, and I can give you some kind of visibility around that.

Management deferred detailed discussion on strategic spending plans, indicating a lack of immediate public disclosure on this key growth driver.

Asked by Avinash

PMY government order supply and expected sales Partial
I will not be able to give the specific numbers, because these are, again, competition-sensitive information. But you are aware that this order has to be completed by June '27, and we are completely dependent on the speed at which the government will give us the dispatch instructions.

Management confirmed the ₹202 crore order timeline but withheld specific supply figures, linking execution directly to government dispatch instructions, which introduces uncertainty.

Asked by Ashok B Jain

Sustainability of losses in domestic appliances business Direct
I'm also confident that this is not a long-term situation for appliances in the country. Consumer appliances are definitely on a growth trajectory. This has been just an intermittent headwind, and this will go away. We should be back on track and the way we made progress last year, we will be back on track.

Management acknowledged significant losses in appliances but expressed strong confidence in a turnaround, attributing current issues to temporary headwinds and industry-wide phenomena.

Asked by Ashok B Jain

Reason for jump in distributor count from 1,000+ to 6,300+ Direct
what's been happening is that the machines have been available, whereas we have been mapping our primary billing points, and then we are expanding to the next billing points, and we are reaching out to all the people where the machines were indirectly reaching, and we are trying to reach out there. So, our recorded numbers have grown, because as we are improving our service levels, our recorded numbers are going up.

Management clarified that the significant increase in distributors reflects improved mapping of billing points and expanded reach, rather than solely new partnerships, indicating better market penetration and service.

Asked by Harshit

Rationale for preferential share issue to VSM despite existing cash Direct
VSM is a wholly owned entity of SVP Worldwide, and SVP is the brand owner of Singer. So, it is SVP who has shown confidence in India, looking at India's promising market going forward. For me, it's a great thing, because India is really coming in the map where SVP has shown interest.

Management explained the preferential issue as a strategic investment by the global brand owner (SVP Worldwide) into Singer India, signaling confidence in the Indian market and supporting manufacturing expansion.

Asked by Dhwanil Desai

Manufacturing Industrial Sewing Machines and export restrictions Direct
Yes, we have the permission. Now, as of now, we are not manufacturing, but the excitement for starting our own manufacturing in ZigZag is that it will open the doors for manufacturing of all sewing machines. ... For India, but we definitely can export through SVP Worldwide, through their entire network, global network.

Management confirmed permission to manufacture Industrial Sewing Machines and the ability to export globally through the SVP Worldwide network, indicating future growth avenues beyond domestic ZigZag production.

Asked by Laksh

2 min read 5 chapters

Detailed narrative

Q2 FY26 Performance Overview and Key Drivers

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.

Sewing Machine Category: Strong Growth and Strategic Developments

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.

Appliances Business: Headwinds and Future Outlook

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.

Manufacturing Expansion and Capital Allocation

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.

Market Dynamics and Distribution Reach

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.

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