Good afternoon, ladies and gentlemen. Welcome to the Symphony call, the Q1 FY 2027 call. I have with me my colleague, Aditya Bhartia, who is the Co-Head of Research, to take us through this call and introduce to the management. Before I hand over to Aditya, please note that all of you are in the listen only mode, and we will give an opportunity to ask the management a question. Do raise your virtual hand, and then we will unmute you. Please note that this call is being recorded. Over to you, Aditya.
Thanks, Swapna. Hello, everyone. A warm welcome on behalf of Investec India to Q1 FY 2027 earnings call of Symphony. We have with us the senior management team represented by Mr. Achal Bakeri, Chairman and Managing Director, Mr. Nrupesh Shah, Managing Director, Corporate Affairs, and Mr. Rajesh Mishra, Chief Growth Officer. Now, I hand over the call to Mr. Bakeri for initial comments, post which we will open the floor for Q&A. Thank you, and over to you, sir.
Thank you very much, Aditya. Thank you all participants for joining this earnings call of Symphony on this lovely cloudy afternoon. The customary safe harbor clause applies. As we have done in the past, my colleague, Nrupesh Shah, who is the Managing Director of Corporate Affairs, will take us through a presentation, post which we are all here to take questions. Thank you.
Yeah. Thank you. Nrupesh Shah here. Yeah. If we summarize the quarter of June 2026, domestic momentum, absolute margin discipline, and as far as overseas subsidiaries are concerned, the robust performance of U.S. and China pushing the reduced export and input intensity headwinds. On a consolidated basis for June 2026, revenue stands at INR 378 crore, up by 8% YoY. EBITDA stands at INR 48 crore, up from INR 38 crore, up by 26%, while consolidated PAT stands at INR 40 crore, down from INR 42 crore. However, EBITDA and PAT are wished to look at from the point of view of in June 2026, there has been one time non-cash expenditure of INR 5 crore, while in June 2025, there was exceptional INR 9 crore of higher income.
If we ignore that, then apple-to-apple, EBITDA for June 2026 is INR 53 crore versus INR 38 crore, while consolidated PAT INR 43 crore versus INR 35 crore. That is up by 23%. As you can observe, the gross margin, despite all headwinds and geopolitical situation and pressure on commodity prices and also inventory overhang due to bad summer of 2025, we have marginally increased the gross margin percentage to 49.8%, while EBITDA to 12.60%. Coming to further specifics of June 2027 quarter. June 2027, for consolidated as well as standalone, has witnessed second highest revenue as well as EBITDA vis-à-vis any historical June quarter. The performance is led by domestic performance, duly supported by gross profit margin and EBITDA margin expansion, as shared earlier. Also noteworthy feature is BISP segment, that is Beyond India Summer Products.
That is the sales product-wise or segment-wise not dependent upon Indian summer, constituted about INR 560 crore on a consolidated basis in trailing 12 months. That is almost 48%, reinforcing our strategic de-risking and diversification from Indian summer. IMPCO Mexico is now back to track and revenue grew by 35% with a robust profitability, mainly on account of successful scale-up of new models of air cooler. GSK China revenue grew by 43% and operating leverage lifted the profitability as well as now GSK China on a standalone basis is completely debt-free, including has repaid all the debt along with interest to Symphony India, just like as it happened many years before with IMPCO Mexico. Climate Technologies Pty Limited Australia, it is continuing revenue soften, but our commitment, we are reinforcing there won't be any further capital allocation.
In terms of the impairment and write-off, it is completely behind us, and it was recorded in FY2026. For June 2026 quarter, the board of directors have announced interim dividend of INR 1 per share on a face value of INR 2, with a total payout of about INR 7 crore. On a standalone basis, that is Symphony India, revenue stands at INR 241 crore versus INR 229 crore, while EBITDA stands at INR 30 crore versus INR 24 crore and PAT INR 28 crore versus INR 37 crore. Again, just like consolidated. If we take out exceptional or one time in both the quarters, the June 2025 PAT stands at INR 24 crore versus June 2026 of INR 28 crore. Just like consolidated top line, even on standalone, this is the second-highest June quarter performance.
By the way, domestic sales, that is India revenue grew by 15%, despite huge inventory overhang before the summer and importantly, all different segments of modern trade grew in excess of 100%. While digital channels, including D2C, are highly profitable in excess of our normal domestic business and has a huge potential to scale up. As of 30th June 2026, that is year-end. As of year-end, there is no inventory overhang either at a trade level or at a company level. It is completely normalized while on a standalone basis. BISP accounts for top line of INR 179 crore in TTM, that is 23%. Importantly, at EBITDA level, it is profitable almost close to double-digit percentage. However, standalone exports from India declined mainly on account of geopolitical and shipping disruptions. Next. About some of the financial ratios.
By the way, as on June 30, our capital employed as well as network has further reduced and rationalized on account of impairment done in FY 2026. As on June 30, 2026, core capital employed on standalone is INR 73 crore versus INR 136 crore, translating into ROCE percentage of 164, while return on net worth at 22%. And treasury stands at INR 345 crore versus INR 363 crore. This is after remitting to Australia and repaying their acquisition loan as well as working capital loan until June 30 of approximately INR 225 crore. In other words, after repaying INR 225 crore of that, treasury stands at INR 345 crore, almost in line with June 30, 2025.
While on consolidated basis, capital employed is now almost half, INR 206 crore versus INR 409 crore as Climate Technologies was taking away substantial capital, translating into consolidated ROCE percentage of 67% and return on net worth of 18%. Thank you. With this, we can take questions.
Aditya, over to you.
Hi, sir. Maybe I'll start with the first initial questions. It would be helpful if you could guide us what could be the proportion of sales that are generated from modern trade and e-commerce channels.
Due to competitive reasons, we do not diverge. However, year after year, it registers very robust growth and profitability.
Understood, sir.
We club it as a part of the modern trade, which of course, apart from e-commerce and D2C, includes large format stores and larger regional stores. What I can say, modern trade constitutes almost or in excess of one-third of our top line in India, while general trade constitutes 60%-65%.
Understood. That is helpful, sir. In terms of profitability, will it be as good as our traditional channel, or it lags by a wide margin?
No, I feel it is almost comparable.
Understood. Okay, sure. My second question is on the cost side. Do you think that in this quarter, we have recorded very good margins. O f course, some costs have gone up and I guess something like plastic costs itself would have gone up. Do you anticipate some impact in the next few quarters on margins because of costs going up? Or is it a case that because inventory in the channel is so low that everything should essentially get passed on and we should really be seeing an impact on profitability?
We will. Frankly, it all depends on how long the war lasts and when the cost begin to normalize. As of now, the costs are still fairly elevated. At least in the short term, we expect there to be margin pressure. Although we would be passing on some of it to the market. Not all of it, because we do not know how long this is going to last. In anticipation of a normalization, which has to happen sooner or later, we will pass on some, but not all of it. In the short term, margins are likely to be impacted.
Understood, sir.
Despite all the value engineering, despite all the cost reduction that we will be attempting to do, there will be some impact. Difficult to quantify as yet how much, but there is likely to be some impact.
Sure, sir. I will come back in the queue, and in the meantime, we can take some questions from the participants. Swapna?
Yeah. Thanks, Aditya. A gentle reminder to everybody who we have opened the Q&A floor for everyone to ask their questions. You have the opportunity to raise your virtual hand, and when I unmute you, please state your name and the fund that you represent for our understanding. With that, I will now request Mr. Balas ubramanian. Sir, go ahead, but please mention the fund that you are from. I have unmuted you, so please unmute yourself. Thank you.
Good evening. Am I audible?
Yeah.
Yeah. Thank you so much for the opportunity. Sir, modern trade is growing over 100%. Could you explain the drivers behind this surge, whether it is a market share gain from unorganized trade or increased in the market itself, or we have changed our strategy? Or is there a low base from last Q1? How sustainable this growth rate in the coming quarters are? Yes.
Mr. Bala, sir, you are from which fund, sir? Sorry, I am going to ask again.
Mr. Bala from Arihant Capital.
Right.
It is a combination of factors. One is that the modern trade, just like e-com or D2C, didn't have any channel inventory. Unlike the general trade, which had elevated levels of channel inventory carried over from the previous year. Had the general trade not had that kind of inventory that they had, maybe their sales would have also been maybe 100% or whatever. It is really a function of the inventory that the channel was carrying. That's one. Secondly, we cannot expect this kind of a growth. We will be very happy if this kind of a growth continues, but that's very unlikely to happen. I think we shouldn't expect that going forward. What was the third question? That's it. Right, Mr. Balas ubramanian?
Yes, sir. Sir, my second question, I think
Related to that. Yes, just related to that, Mr. Balas ubramanian. As General Trade was carrying the inventory, obviously, there was a subdued performance at a company level in terms of sales to them. But obviously, at their level, there was a phenomenal sales. That is number one. Hence, year as a whole, as inventory has normalized, we expect General Trade in particular, and all other trade channels should register growth, which is also our expectation and business plan.
Got it, sir. Sir, my second question, in USA, I think the growth is 35%. I think it was a very good growth. Mentioned about a successful scale-up of new air cooler SKUs. Could you please mention what kind of SKUs are really picked up in the U.S. market? These are specially designed for U.S. market, or they are rebranded Indian SKUs?
They are essentially rebranded Indian SKUs. We have one major customer in USA, which is The Home Depot, and other customer is Lowe's. These are two of the largest companies in retailers in U.S. in the home center, home care kind of category. The products that we sell to them mostly go from India, some even go from Mexico. The product that has registered the greatest sales growth is a model called Air Force. That goes by the name of Air Force in India. It also goes by the name of Air Force, but under our USA brand, which is Bonaire, and essentially, that is what gave us the big uptick in numbers.
Okay.
The sales has also been aided by a very good summer in the USA, especially in the southwest, which is our core market. It is very hot over there this year. It is a combination of everything, the right product at the right price, in the right channel, aided by the tailwind of a good summer.
Okay, sir. Sir, this distribution strategy, how it is different from Australia?
Vastly differs from Australia. We have a warehouse in USA and this is a retailer that we sell to, whereas in Australia, the part of our business that comes from retailers is still very small. Bulk of it still goes to the GT equivalent of India.
Okay. Installation companies.
The installation companies. I think the closest resemblance would be the GT channel for India. Thank you.
Got it, sir.
Vast difference.
Okay. We learned most of the lessons from Australian market and we implement it in the U.S. Is that the right way to understand, sir?
No. The two markets have been very different. Even if we had wanted to, we couldn't have implemented the U.S. model in Australia or the Australia model in USA. The break-up of the markets are very different.
Got it, sir. Thank you.
Thank you. In the interest of time, I will request everybody to limit your questions to maybe two questions and then come back in the queue. I would now request Mr. Haider to please inform us your company name and go ahead with your question. I'm unmuting you, sir. Mr. Haider, please let us know your company name and ask your question. Thank you.
Good evening. Am I audible?
Yeah.
Good evening, sir. This is Haider from YES SECURITIES. My question was, could you just tell us the revenue, EBITDA, and PAT numbers for all the subsidiaries?
Yeah. Symphony USA, I am sharing in INR 36 crore versus INR 27 crore.
Got it.
Top line and EBITDA is INR 18 crore versus INR 7 crore. I will come to EBITDA number later on. IMPCO Mexico, INR 64 crore versus INR 66 crore, and EBITDA of INR 3 crore versus INR 7 crore. GSK China, INR 34 crore versus INR 24 crore, and EBITDA INR 6 crore versus INR 2 crore. All these numbers are for June 2026 quarter. Symphony Brazil, this is not a season, so nothing to talk about it. As far as Climate Technologies Australia is concerned, INR 27 crore versus INR 31 crore, and EBITDA negative INR 4 crore versus negative INR 2 crore.
Sir, I think you missed out on the PAT number also. If you could share that as well.
Okay. So Bonaire USA, PAT is INR 17 crore. IMPCO Mexico, PAT is INR 1 crore. GSK China, PAT is INR 5 crore. Climate Technologies Australia, because of exceptional income as its shareholding in Bonaire USA and IPS were sold, so it is very high PAT, but it is on account of one time worth of about INR 42 crore of write back or gain on that, and hence PAT is INR 36 crore.
Okay, sir.
That is to be excluded and it has a net-off at a consolidated.
So that is given minus that.
Yes.
Okay, sir. Thank you for that. Sir, what kind of price hikes have you taken in the quarter? Because we are seeing raw material going haywire. So what kind of price hikes have you taken, and what kind of price hikes are you yet to take in the coming quarters?
As of now, we have not really taken in the household cooler segment. In the other segments, we have taken about 7%-10% of price hike. In others, we will be taking hikes in the days to come. But to what extent we will continue raising remains to be seen, because like I said previously, it all depends on when the war ends and when the costs normalize.
Right. So you mean except household products, you have taken 7%-10% price hikes?
Yes.
Okay, sir. Okay. Thank you, sir. That is it from my side.
Thank you.
Thanks, Mr. Haider. Before I move to the next participant, I would like to remind everyone that if you have a question, do raise your virtual hand and we will unmute you. If you have joined through a dial-in, please press star and five on your phone to raise your hand. I will now move to Ms. Shraddha. Ma'am, you will have to tell us the fund that you are from, and I will continue with the call. I have unmuted you, ma'am. Please go ahead. Ms. Shraddha, can you hear us? We are unable to hear you. You are unmuted.
Let us move to the next question.
We will have to wait for some time, sir, for the next question. Meanwhile, I have my colleague, Veenit. Veenit, go ahead, ask your question.
Hi. Sir, I have one question on Australian subsidiary. We have had some challenges there for some time now. I understand we have had COVID and all supply chain issues, et cetera, but what is our strategy there to turn operations around?
First and foremost, our strategy is not to deploy any additional capital and whatever this can be done without deploying any additional capital in our Australian business. The point is we are very clear internally and also to assure all the shareholders that whatever impairment or cash losses or write-off is a history, that is not going to happen. So without that, whatever can be done, we will be doing it, and as it unfolds, we will keep you informed.
Understood. And sir, anything incremental on product introduction, distribution, manufacturing, anything on those lines?
Where? In Australia or India?
Australia.
Australia. No. They are more or less same. Nothing new.
Understood. My second question is on the BISP products which we sell. If you can highlight some of the larger, apart from exports within India, which are some of the larger categories. If you can give a ballpark number, how much would they contribute and how is the traction and customer response on those products?
It consists of large space that is centralized air cooling. Apart from exports, it consists of table top fan, which saves surrounding air, water heater, and exports. This is our standalone basis. When it comes to consolidated level, essentially in our mind, whatever sales happens, which is not dependent on Indian summer, all that is Beyond India Summer Products, that is BISP. On a consolidated basis, sales, my average subsidy is all because geographical diversification. On a consolidated level, about 48% is BISP, while on a standalone basis, in our trading environment, it is 23%.
Understood. Sir, particularly, BISP, we are quite aware about even exports. Just to harp on the other two products, tabletop fans and water heaters, is it largely online which we are doing? How do we plan to scale these products up across the country? Any plans to get into GT, et cetera, and maybe launch in other states as well?
We have already launched in other channels, modern retail and as well as GT. It is not everywhere yet. It is just a matter of time by which it will be everywhere. But we are already present in the top cities across the country, in GT as well.
Understood. Thank you so much, sir.
Thank you.
Thanks, Veenit. My next person on the queue is Mr. Pratik Talvadkar. I have unmuted to you, Pratik. Please go ahead and ask your question. Mr. Pratik, can you ask the question? We will come back in queue for Pratik. I will allow Mr. Haider to come back again and ask the question. Mr. Haider, go ahead with your question.
Thank you for the follow-up, sir. Sir, I just wanted to understand one thing. We have been doing good growth in the U.S. business, but this is more from an understanding the business perspective. The U.S. is a much more developed market than India, right? The per income capita and all is also significantly higher. So why would there be a need for an air cooler in somewhere like the U.S. as compared to an India, which is a developing economy and we need something more cheaper over here as compared to an RAC. Why is it that the sales in the U.S. would be a good market as compared to a place like India or Brazil or anywhere which is still developing?
We have said this many times in the past that coolers is not viewed as a poor man's air conditioner anywhere outside India. It is only in India that it is seen as a substitute for air conditioners. You will find coolers being sold not only in the USA, but even across Europe. The quantities are not much because the market for this is a relatively small market, even for air conditioners or fans. But coolers are sold even in the Middle East, which has total abundance of energy and cost is not a consideration, price is not a consideration. It is only in India that we view coolers as a cheaper alternative to air conditioners. In the U.S., it is bought for usage outdoors because in the Southwest, all houses are centrally air-conditioned. Despite that, air coolers are bought.
Like I said, they are used mainly outdoors near the pool, near the backyard, and in people's garages. There are some products which are even sold, some of our models are even sold as household coolers for whole house cooling. They are mounted on the ceiling, and they cool through ducts across the house. There are some which are window-mounted coolers, which cool the entire house again. It is a very good alternative to air conditioning in the Southwest where it is very dry, because air coolers provide that little bit of humidity, which is very good to feel in very dry conditions. It is a combination of factors. Most importantly, it is a portable product. It is a plug-and-play product. That is what the most compelling advantage of this product is.
Okay, sir. Thank you. Thank you for the clarity on that. Thank you. That is just from my side.
Sure.
Thank you very much, sir. I am going to wait for another couple of minutes before we move to the next attendee. We will wait for a few questions. Thank you.
Swapna, in the meantime, I think there are some questions in the chat as well. If you can read out for the management to respond to.
Yes, perfect. I will do that right now. We have a question from Ms. Shraddha. Firstly, she has apologized. There is some network issue. She is unable to ask directly. She has got three questions. I will ask them one by one. The first question is, could you provide your outlook for the ROW business over the next two to three quarters, particularly for the USA and Mexico? With expectations of strong summer conditions in these markets, do you expect demand to improve meaningfully? That is her first question.
As far as Mexico is concerned, we went two consecutive bad summers. By bad, we mean mild summers. The summer of 2025 and the summer of 2026, both have been sort of mild summers and which have had an impact on sales. This is the first time in memory that this has happened. We have people in Mexico who have been with the company for more than 30 years, and they have never witnessed two consecutively mild summers. We hope and we expect that the summer of 2027 should be certainly. Statistically, it will be almost impossible for it to be a mild summer. It should be certainly a fairly robust summer and the sales should grow significantly. I cannot put a number on it yet, but we expect there to be significant growth.
As far as USA is also concerned, as you said, if we were to assume that the summer will be robust, if that's the assumption, then the sales should further increase next summer. Even this year, there was some. I am for sure this next year will be significantly better if the summer is as good as this year.
Thanks. Have export shipments now fully resumed, or are you still facing logistic or shipping-related disruptions? Are geopolitical uncertainties continuing to affect order inflows or execution in key export markets?
The Middle East, which was primarily impacted, continues to remain affected. For other reasons, the costs have shot up significantly. That is impacting the overall demand. Overall, the costs have gone up, and this is also impacting the buyer sentiment. People are more cautious because the landed costs have gone up, and we are not able to pass on the entire increase. Therefore, the purchase is now a bit muted. It's still not back to normal.
Okay. Her next question is, Bonaire USA and GSK China delivered healthy growth during the quarter, while Mexico and Australia remained relatively weak. How should we think about the growth trajectory of each of these businesses over the next few quarters? During Q1, demand for air coolers was somewhat patchy, particularly in North India, due to uneven weather patterns. Could you help us understand the impact this had on your sales and demand trends across regions? How have secondary sales trended in July and early August? Have you seen any improvement in offtake after the normalization of weather conditions?
It is not a question, that is an essay.
I agree. Would you want me to break it down further or?
No, it is okay. It is okay. Hold on, Swapna.
Essentially, Bonaire is the first part, so the growth trajectory. Second part is in Q1, was the patchy North Indian weather.
Yeah. Okay, hold on. In the next few quarters, this business is likely to see sales in the summer. The U.S. summer sort of extends into the current quarter. We will witness revenue in the current quarter, but the next two quarters you will not see much revenue in the U.S. market because primarily it is coolers, and coolers are, as you know, sold only in the summer. As far as China is concerned, that has more of an even thing, even sales cycle because there is a lot of industrial coolers and plus exports, which will continue with that. We expect the GSK to continue the momentum, and in the coming quarters, based on how much export orders are received. We believe that we should be able to do fairly good in GSK. Bonaire USA coming quarter should be good.
Current quarter.
Current quarter. It is the current quarter. But after that it will be muted. That is what as far as Bonaire USA and GSK China is concerned. As far as your second question is concerned, the Q1 was definitely patchy as far as North India and even East Asia is concerned. But in the coming quarter, we do not expect any secondary sales, but there will be primary sales. It is basically off-season buying, which happens by our channel partners, which will happen in the current and the subsequent quarters.
All right. I think that is the last of it, and maybe I will make the last announcement if there are any questions. We will wait for one or two minutes, sir. Otherwise, I would request you to make the closing remarks before we end the call for today.
Yes, sir, just a couple of minutes if there is any last-minute question. Otherwise, I think we are good to go. Yes, sir, go ahead, and I would request you to make the closing remarks.
Okay, all right. Once again, thank you all for your participation and for the interest that you have shown in our company. We look forward to seeing all of you again next quarter. Thank you, and have a great day. Bye-bye. Also, thank you to Investec as well as Aditya and Swapna for organizing and coordinating this. Thank you.
Thank you, sir. On behalf of Investec, my colleague Aditya and Veenit and I thank the Symphony management for giving us the opportunity to host their earnings call. Thank you.