Q2 2026 Singer India Ltd Earnings Call Transcript
Key Points
- Singer India Ltd (BOM:505729) experienced a significant revenue growth of 30% and a PBT growth nearly tripling from INR1.67 crores to INR5.22 crores, primarily driven by the sewing machine category.
- The company recorded a 34% revenue increase in the ZigZag sewing machine segment, which is seen as the future of the domestic market in India.
- E-commerce sales showed strong momentum with over 40% growth in the second quarter, highlighting the company's successful online strategy.
- Singer India Ltd has signed amendments to its brand license agreements, allowing it to manufacture ZigZag machines locally, which is expected to reduce costs and open export opportunities.
- The company generated INR21 crores in cash from operating activities in the first half of FY26, marking one of its highest half-yearly achievements, which will support future capex for manufacturing expansion.
- The appliances business faced challenges with a 17% revenue decline and a 340 basis points drop in gross margins due to an unfavorable product mix and weather conditions.
- The transition period for the GST rate change led to subdued primary offtake, impacting sales during the quarter.
- Singer India Ltd continues to face pressure in the appliances segment, with losses of approximately INR5.5 crores in each half of the fiscal year.
- The industrial sewing machine segment is small and faces competition from imported brands, although it presents a growth opportunity.
- The company is still in the planning stage for its new manufacturing facility, indicating potential delays in expanding production capacity.
Good Afternoon, ladies and gentlemen. On behalf of Emkay Global Financial Services Ltd, we are pleased to welcome you all to the Q2 FY26 investor conference of Singer India Limited. Today, we have with us Mr. Rakesh Khanna, Vice Chairman and Managing Director Singer India Limited; and Mr. Subhash Chand Nagpal, CFO, Singer India Limited.
We'll begin the session with opening remarks from the management, followed by a Q&A session. Over to you, Sir.
Thank you, Marazbaan, and Thank you, Emkay Global, for hosting the event. And a very warm welcome to everyone joining us today. We truly appreciate your continued interest in our company. I trust most of you would have already reviewed our quarterly financial results and the investor update.
During this quarter, we witnessed a steep drop in GST for sewing machines, from 12% to 5%. While the GST change will definitely boost the demand, and we sincerely thank the government for this initiative, the primary
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