Singer India's Q2 FY26: Sewing Machine Segment Stitches Up Growth Amidst Appliance Headwinds

Singer India Limited, a household name with a legacy spanning over 170 years, has reported a mixed but ultimately strong performance for the quarter ended September 30, 2025 (Q2 FY26) and the first half of the fiscal year (H1 FY26). The company's investor presentation and subsequent conference call revealed a robust rebound driven primarily by its Sewing Machine category, even as the Home Appliances segment faced significant headwinds. For Q2 FY26, Singer India posted a total revenue from operations of INR 137.9 crore, marking an impressive 30.4% year-over-year growth. Profit Before Tax (PBT) surged by 212.6% to INR 5.2 crore, and Profit After Tax (PAT) saw a substantial increase of 201.6% to INR 3.8 crore. This strong quarterly performance helped recover some of the losses from Q1, though H1 FY26 PBT and PAT still registered declines of 18.2% and 19.7% respectively, compared to the previous year.

The Sewing Products segment was the star performer, contributing INR 116.4 crore to the Q2 revenue, representing 84.41% of the total. This segment experienced an overall growth of 45% during the quarter. Within sewing machines, the promising ZigZag segment grew by 34%, and the conventional cast iron straight stitch machines also saw a robust 34% growth in Q2. The e-commerce channel for sewing machines continued its strong momentum, delivering over 40% growth. In contrast, the Home Appliances segment contributed INR 21.5 crore, or 15.59% of the total revenue, and declined by 17% in Q2. This decline was attributed to an abbreviated summer, intermittent rains impacting cooling product sales, high trade inventory, and the transitional impact of GST rate changes. Gross margins for appliances also fell by 340 basis points due to an unfavorable product mix.

Strategic Initiatives and Growth Drivers

Singer India is not just riding the wave of its sewing machine success but is also strategically positioning itself for future growth. A significant milestone is the receipt of the license to manufacture or outsource ZigZag machines in India under the Singer or Merritt brand names. These machines, previously imported, will now be produced locally, a move expected to create employment, make products more affordable, and open export opportunities through the SVP Worldwide network. The company plans to set up the entire manufacturing facility for these machines within 8 to 12 months.

Further bolstering its growth strategy, the Board has approved a preferential issue of equity shares worth Rs. 4.5 crore to VSM, an entity belonging to the non-promoter category and the brand owner of Singer. This investment will support the expansion of the manufacturing facility, design development, and equipment for sewing machines, signaling strong confidence from the global brand owner in Singer India's potential. The company is also aggressively expanding its fan business category with new variants and models and introducing a new portfolio in other high-growth potential appliance categories, aiming for profitability in this segment soon.

Operational Excellence and Market Outlook

Management highlighted its focus on operational efficiency and market penetration. The company is strengthening its distribution network, improving retail connect, enhancing visibility, and boosting its e-commerce presence. Organized dealer engagement events are being conducted to foster stronger relationships and support the growing network. In terms of cost optimization, Singer India is focusing on value selling, particularly with high-end embroidery machines (AZZ category) which continue to grow significantly while maintaining high margins. The company is also systematically removing loss-making SKUs across its appliance categories and channels to improve overall gross margins.

Despite the challenges in the appliance segment, management expressed confidence in its long-term potential, viewing the current headwinds as temporary. They anticipate a strong rebound with favorable weather conditions and market demand expected to liquidate existing inventory. The industrial sewing machine segment is also expected to see significant traction, leveraging the strong Singer brand to compete in a market currently dominated by imports. The company's cash generation from operating activities for H1 FY26 stood at Rs. 21 crore, one of its highest ever, providing sufficient financing for its planned factory setup and growth initiatives.

Conclusion: Stitching a Path to Sustainable Growth

Singer India Limited's Q2 FY26 performance underscores its strategic clarity and disciplined execution. The strong growth in the sewing machine segment, coupled with the landmark local manufacturing license for ZigZag machines and strategic investments, positions the company for sustained expansion. While the appliance segment requires careful navigation, management's proactive measures to optimize the portfolio and invest in high-growth areas reflect a commitment to long-term value creation. Singer India is not just selling products; it is stitching a path to sustainable growth, reinforcing investor trust through strategic initiatives and operational resilience.