Transcript for the Investor call
SINGERIND · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Singer India reported strong Q2 FY25-26 results with revenue growth of 30% and PBT nearly tripling from Rs. 1.67 crores to Rs. 5.22 crores, driven mainly by a 45% jump in the Sewing Machines segment. The company highlighted the GST rate cut on sewing machines from 12% to 5%, robust ZigZag segment growth of 34%, e-commerce growth of over 40%, and 14% growth in Industrial Sewing Machines. The Appliances business remained weak, declining 17% with a 340 bps gross margin drop due to unfavorable weather and trade inventory issues. A key milestone was signed: amended brand license with SVP Worldwide allowing Singer India to locally manufacture ZigZag machines under the Singer and Merit brands. The Board approved a preferential issue of 5,65,397 shares at Rs. 79.59 each (Rs. 4.5 crores total) to VSM, a non-promoter entity owned by SVP Worldwide.
The SVP Worldwide investment and ZigZag manufacturing license mark a strategic turning point, signaling long-term confidence from the global brand owner and potential margin expansion through localized production. However, the continued drag in Appliances (Rs. 5.5 crores loss per half) and management's reluctance to disclose royalty terms, contract tenure, or a 3-year brand spend roadmap may leave investors wanting more visibility on future profitability.