Ladies and gentlemen, good day, and welcome to the Symphony Limited Q4 FY2026 earnings conference call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manan Goel from ICICI Securities. Thank you, and over to you, sir.
Thank you. On behalf of ICICI Securities, we welcome you all to Q4 and FY2026 result conference call of Symphony Limited. Today, we have with us senior management represented by Mr. Achal Bakeri, Chairman and Managing Director; Mr. Nrupesh Shah, Managing Director, Corporate Affairs; Mr. Rajesh Mishra, Chief Growth Officer. I hand over the call to the management for their initial comments on the quarterly performance and a small presentation. Then we will open the floor for Q&A session. Thank you, and over to you, sir.
Thank you very much. Good morning, everybody. This is Achal Bakeri, Chairman and Managing Director of Symphony. I welcome you all to this earnings call of Symphony Limited. As is our custom, my colleague Nrupesh Shah, Managing Director of Corporate Affairs, will be making a brief presentation, following which we will take your questions. The customary safe harbor rules apply, and I thank ICICI Securities for hosting this call. Over to Nrupesh Shah.
Hello. Good morning to everybody. Thanks for joining Symphony FY2026 investor call and earnings presentation coupled with Q4 2026. We will take you through performance highlights. Secondly is Australia reset, U.S. business, and the related IPR consolidation. Coming to financials.
On a console basis for the year FY2026, top line stood at INR 1,131 crore, down by 28% YOY, leading to PBT of INR 149 crore, down from INR 326 crore. After providing for exceptional one-time impairment provision and net of some of the right back, the PAT stands at negative INR 141 crore.
The capital employed in the core business on a console basis stands at INR 384 crore. Mainly this capital deployed was in Australia and Australia-related business, and ROCE, which is PBIT divided by capital employed based on monthly average capital employed, stands at 34%. Coming to standalone performance, Symphony India.
Revenue is INR 765 crore, down from INR 1,182 crore. PBT stands at INR 164 crore, down from INR 329 crore, and profit after tax after exceptional items stands at INR 166 crore. About exceptional items, we will deal with it later on.
Capital employed on the core business that is in Symphony India was INR 78 crore, translating into ROCE percentage of 149%. Our total treasury as on March 31, 2026 stands at INR 287 crore after remitting and investing INR 165 crore in Australia to repay its long-term and short-term loan, which was converted into equity and now impaired. For Q4 FY26, that is March quarter, on a consolidated basis, revenue is INR 338 crore, down from INR 488 crore. Gross margin percentage, the noteworthy barometer of the profitability, is intact.
It is 46.4% in line with previous years. Of course, EBITDA has taken a toll, mainly on account of economies of scale and operating leverage, and hence EBITDA percentage stands at 15.5%, down from 21.2%.
It is also noteworthy that Beyond India Summer Products, so now we have short-form it as a BISP portfolio or BISP products, which includes Large Space Venti-cooling air cooling towers and kitchen chimney, water heater, exports from India and sales in rest of the world.
That is the product portfolio not dependent on Indian summer. That constituted INR 558 crore of sale out of about INR 1,100 crore plus, that is 49% of FY26 revenue. In a way, through party product diversification and geographical diversification, de-risking the business. During the year, IMPCO Mexico registered flattish revenue with overhang of channel inventory.
GSK China is doing well, registering decent top line as well as profitability growth. Another important feature is, during the year, GSK China, out of its internal accruals and realization from its assets, repaid INR 26 crore of loan to Symphony India and hence, as on March 26, net loan repayable to Symphony India is just INR 4 crore from peak of INR 60 crore plus.
This INR 4 crore of loan requirement is expected in next six months, whereby GSK China, in line with IMPCO Mexico, will be a debt-free in terms of the long-term loan. U.S.A. business has registered strong momentum despite geopolitical and tariff issues, and the profitability on a quarterly and annual basis is intact as it was in pre-tariff, pre-geopolitical turmoil. As far as Climate Technologies Australia is concerned, I will come to it later on.
Board of Directors has declared final dividend of INR 5 on a face value of INR 2, amounting to total annual payout of INR 62 crore, almost 60% of annual consolidated PAT, in line with our stated payout policy. This payout is despite taking an impairment. Coming to Symphony India Q4 2026.
The revenue stands at INR 199 crore, down from INR 368 crore. March 2025 was of course high base, but March 2025 top line was also on account of huge unbilled advances as on December 31. So high base and to an extent extended billing to next quarter.
There was until March 31 channel caution because of inventory overhang and bad summer of 2025. However, starting from third week of March, especially in South Western India and part of Central India, there has been decent performance in the month of April so far from those parts.
As far as North and East India is concerned, channel inventory is to a major extent already rationalized. However, in April as well as until now, there has been some weather disturbances, but it is expected that starting current week we may witness decent summer. In the past also it has happened that especially in these parts, summer sets in from second or third week of May.
If so, still we have 4- 6 weeks of decent summer sales. As far as India is concerned, Beyond India Summer Products revenue registered at INR 192 crore out of standalone top line of INR 765 crore.
That is slightly above 25% of the top line. Of course, this segment as a whole is already profitability-wise accretive, including EBITDA level as well as PBT level. Export revenue was impacted mainly on account of ongoing Middle East geopolitical headwinds. Coming to Australia reset.
Now dealing with Australia reset U.S. business and on account of that IPR consolidation at a level of Symphony India. Board of directors and company have decided to take a balance sheet reset, including impairment in relation to Australia business.
Entire equity investment made in Australia, worth of INR 350 crores cumulatively, including about INR 299 crore in the current year, has been impaired. In other words, now there is nothing more to impair in terms of the equity investment from Symphony India. We have ring-fenced U.S. business by making it a direct subsidiary of Symphony India, and Bonaire's equity has been bought over by Symphony India at a valuation of INR 29 crores.
In addition to that, some of the IPRs, especially Bonaire brand of Australia, is valuable, particularly for U.S. business and other markets, and hence, those IPRs have been also bought over by Symphony India for about INR 23 crores.
Company fully recognizes investors' concern about the performance of Australia, its capital efficiency, year after year, the losses it has caused, and investors always like to have disciplined capital allocation.
We must accept that our original acquisition thesis of Australia business has not translated into the financial outcome due to external situation and despite making all-around turnaround efforts. When Symphony acquired Australia business in 2018, the strategic rationale was in building broader international business.
The acquisition provided entry into developed markets such as Australia and U.S.A. and added established brand portfolio. However, post-acquisition, Australia business encountered materially different operating environment with a series of external shocks.
Just within 15- 16 months post-acquisition, we witnessed COVID-related world's longest lockdown for almost 21 months. Hence, we didn't get the time to really integrate and symphonize the business.
On top of it, due to changes in local regulations, we had to exit certain products, especially gas-based products, but promptly we replaced them by new set of products more befitting to local market.
Coupled with it, we also reduced the overheads to less than half. Also, integrated manufacturing facility converted into outsourced business model. Also tried best to enhance and expand marketing network.
But in a nutshell, despite all that, in last 2 years, Australia business has registered losses of INR 60 crores, including INR 35 crores in FY 2026. This is after accounting for decent performance and profitability of U.S.A. business.
Hence, to further reduce the financial overhang and carrying risk, Symphony infused INR 165 crore in March in Australia business to repay the long-term loan as well as working capital loan availed by the subsidiary, which was by the comfort of and guaranteed by Symphony India.
To that extent, loan has been repaid. Coming to specific impairment on our standalone business in Symphony India, we have taken an impairment of INR 298 crores in addition to INR 50 crores taken last year. It means entire equity investments totaling INR 348 crore has been impaired.
At the cost of repetition, nothing more to impair, or in other words, nothing more to lose. At a console level, where technically accounting assets are different. All put together, the impairment is INR 259 crores, including goodwill in some of the intangible assets and deferred tax.
To that extent, post PBT, PAT is impacted for the quarter and year. The board of directors and company have also decided, and very importantly and categorically, that no further capital investment or allocation will be made to Australia business. Whatever we were to invest, whatever we were to commit, we have done enough.
Along with this, we have acquired the shareholding of U.S.A. business directly in Symphony India amounting to INR 29 crores and IPR worth of INR 23 crores, total INR 52 crores. This INR 52 crores will be remitted again out of treasury of India in current week or next week.
From remaining balance outstanding working capital loan, which is guaranteed by Symphony India, this profit will be used to repay the working capital loan. Next. These are the financial statements, more for your reference. Standalone as well as consolidated on quarterly and annual basis. We can have Q&A.
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star, then one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use handsets while asking a question.
Ladies and gentlemen, we will wait for a moment while the questions are sent. A reminder to all, you may press star and one to ask a question. We have the first question from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Hello, sir. Thank you for taking my question. Sir, you said South, West, and Central India have seen decent performance in April, but North has been weak. Can you comment overall company level, how are things, and what percentage of our business comes from the North first?
It is not like every year North contributes the most or East contributes the most. It varies year after year, depending upon the season. However, despite huge inventory until pre-season, in April, there has been a decent uptick in the fresh business in the month of April.
Coming to North India, as I said, most of the inventory overhang is done so far, despite turbulent season. However, it seems that starting from current week, there may be a decent summer as it was witnessed in some of the past years. If so, I think still we may have a fairly good summer company as a whole.
Sir, when you say fairly good, can you expect a double-digit type growth, 10%, 15%, 20% growth? How should we look at it?
No, if you can tell me for next 2, 3 weeks what is going to be the precise weather, then I can make some analysis and give that forecast.
Got it. Sure, sir. Our company has been quite pioneer in doing buybacks, and now a lot of companies have announced buyback, but we haven't announced any such plans. Our last buyback, it was in 2024. Any plans on that front?
Yeah. No share buyback as of now, but in a way, we bought back Australia company, we bought back Australian loans and we bought back U.S.A. companies and debt by doing this balance sheet reset.
But sir, given our stock price is quite low compared to one, 2 years ago. Any thoughts on share buyback for shareholders?
No, at a right time, board will consider as always it was done, and irrespective of anything, there has been a decent payout. But of course, at the right time it can and will happen again with change in regulation.
Sure, sir. Thank you and all the best.
Thank you. We will take the next question from the line of Vinay Nadkarni from Hathway Investments Private Limited. Please go ahead.
Thank you for the opportunity. I just wanted to know what is the size of your U.S. business in terms of sales and EBITDA and PAT, if you can share that, and what is the loan outstanding?
S ize of U.S. business in last five years have varied from, if I say in INR, ranging from INR 30 crores to INR 140 crores. In other words, the potential is at least INR 140 crores, that is the kind of the sales we achieve.
In FY26, U.S. business sales was about INR 60 crore. I do not have the EBITDA margin handy right now, but by and large, it is in line with our domestic business. Of course, that margin gets distributed among two or three companies, but ultimately that is the level of EBITDA margin from U.S.A. business.
What sells most in U.S.A.? What are the products that you sell there? Is it the same thing that you do in India or is there something additional there?
Yeah, it is air cooler. Mainly air cooler.
Okay.
Some products are some of the products which are sold in U.S.A. Most of the products in terms of value are exported from India and the balance come from our plant in Mexico. They are all air coolers essentially.
Okay. This tariff, because of Mexico, tariff will not be an issue going forward. Of course, now there is no tariff, but still.
Yes. Fortunately, by the time our products reached the shores of America, even this year, the tariff had come down to whatever, 12% or so. Even from India, it wasn't really material. Yes, then of course from Mexico, there is no tariff. All in all, it's become a non-issue at the moment.
Okay. I do not remember seeing your slide on the performance of each of your subsidiary, GSK China and Mexico. Can you just give us the sales and the EBITDA numbers of these two companies, subsidiaries?
Okay. So about IMPCO Mexico, for FY 2026, the top line stood at INR 182 crore and EBITDA INR 21 crore. For GSK China, top line was INR 96 crore and EBITDA of INR 8 crore. For Climate Technologies Australia, top line was INR 182 crore. Including profit of U.S.A. business, the tax figure I have is negative INR 27 crore because there we had a substantial interest outflow also.
Okay, so now Climate Technologies Australia. So finally it is done now. Are you closing it down or are you still looking for sale of that, though it is completely marked out of our books. Are you looking at monetizing some part of it or what exactly is the plan for Climate Technologies Australia going forward?
There we are to begin with again, changing the business model to where we will have distributors across the country who will distribute products. At the moment, the subsidiary itself sort of has warehouses and distributes products to various dealers across the country. Instead of that, we will have distributors in key geographies who will invest, buy the products that go anyway from India or China and warehouse them and then sell to the local dealers.
That is the plan. As far as your specific question about closing, winding it up or that is something which we are not at the moment considering. At the moment, we are only looking at making the distribution more effective and efficient, so that we sort of continue to build on what we have already done without draining resources anymore.
Yeah, because you mentioned that the board has decided not a single penny more to be given to Climate Technologies Australia. Just was wondering, how can a loss-making company survive without any funding?
Exactly. The company there will just have the team which will manage the affairs, whereas the commercial transactions would be entirely between the distributors and our company in China or India, which have been traditionally selling products to the Australian subsidiary.
What is the fixed cost of Australian subsidiary now in a stripped-down version for a monthly fixed cost?
As of now, it is how much? It is about, as of now, the CODB is about 500? 500- 600K per month, which includes significant warehousing, rental costs and all, which would also further reduce. We would essentially just have the team and some office space which will manage the affairs over there. That's a similar arrangement that we have, say, in Brazil. We are basically going to replicate that kind of a model.
Okay. Thank you very much.
Yeah, you're welcome.
Thank you.
Sorry, to continue with the previous question, this INR 500,000 or INR 600,000 per month, which would further go down once the warehousing costs have been eliminated.
Thank you. Before we take the next question, a reminder to all, you may press star and one to ask a question. We will take the next question from the line of Manan Goel from ICICI Securities. Please go ahead.
Hi. Thank you, sir, for the opportunity. So I have one question. With multiple new entrants aggressively pricing the air coolers, what is the company's strategy to defend their market share? Are you seeing any average selling price pressure at the trade level?
What was the last part you said? What kind of pressure at the trade level?
Yeah, pricing pressure at the trade level.
Symphony has always been considered a sort of a premium brand, a marked premium brand. Whereas all our other competitors have positioned themselves lower to Symphony for equivalent products.
However, we have the widest range of products in the industry, and our products will be sort of positioned at various price points so that we are able to aggressively defend our market share and maybe even grow the market share. The advantage that we have of our product portfolio is that we are able to sort of have products for the value segment as well as for the premium segment.
Got it. And sir, another question is, the water heater category was launched in April 2026, so what are the revenue numbers in this category so far, and how do you expect the EBITDA margin will become accretive in this category?
It was a launch year, so the revenue wasn't anything to write home about. But in the coming year, we are sort of going to It's a long haul. It's going to be a long process, and in the years to come, we will sort of work our way up the revenue chain.
And we also launched in very limited markets.
Yes. Until last year, it was launched in very limited markets, so the geographical spread will also be wider this year. So the revenue will grow up. The products were very well received, both from customers and channel partners wherever they were sold.
So we have a unique product proposition in terms of the Hair Fall Control Geyser, which is something which no other competitor in the industry has. So in terms of technology, our product is the most advanced. But at the same time, we have launched value product ranges as well. So we have a whole suite of products from the Spa, which is our flagship product, to products at value price points.
Understood, sir. Thank you so much for-
Sure.
Thank you. We will take the next question from the line of Haider Kachwala from YES Securities. Please go ahead.
Good morning. Am I audible?
Yeah, you are.
Sir, thank you for the opportunity. Could you also provide the PAT numbers for your subsidiaries?
PAT number for?
The subsidiaries.
Yeah, the subsidies.
For Climate Technologies Australia, at PAT level, it was negative INR 27 crore before exceptional item. For IMPCO Mexico, it is positive INR 6 crore. For GSK China, before exceptional item, it is positive INR 6 crore, and post exceptional item, it is INR 49 crore. And Symphony Brazil, it is INR -3 crore.
Thank you for that, sir. What do you expect the growth like looking forward in these subsidies? What would you guide for? How should we look at them?
So very clearly with this Australia balance sheet reset, subsidies will incrementally contribute to the profitability. As you know, in Mexico, in China, and in Brazil, we don't have any capital deployment. In fact, in Mexico and China put together, our equity investment is less than INR 5 crore.
There is no Symphony outstanding loan to IMPCO Mexico since years and years. In GSK, which was in excess of INR 60 crore, to be precise, INR 67 crore, now loan outstanding is just INR 4 crore.
Even that should be repaid. It means not only in terms of the top line and profitability, but even in terms of the overall profitability matrix, it has to be and will be quite capital accretive. In fact, it was Australia, which was a huge and consistent drag and had distorted the picture.
Okay, sir. Thank you for that. That's it from my side.
Thank you. We will take the next follow-up question from the line of Vinay Nadkarni from Hathway Investments Private Limited. Please go ahead.
Yeah, thanks for the opportunity again. Just two questions on the Indian business. When you said overall business was around INR 100 crore and INR 558 crore coming from BISP. So balance INR 542, I presume, would be from the Indian operations alone. So when I look at how is the EBITDA level playing in these two geographies, I mean, these two segments?
No, of course, in household residential coolers, it is significantly better. However, in BISP category also, even though we have built and growing it with substantial advertisement and sales promotion expenses in last three, four years, at EBITDA level, it is in a decent high single-digit margin percentage.
Okay. And you see that going through operating leverage going forward, or how exactly will BISP EBITDA margin cross and come closer to your normal EBITDA margins?
No, so for sure, it has a potential to be in line with our air cooler business.
With operating leverage.
With operating leverage, as far as our subsidiaries are concerned, particularly IMPCO and even U.S. business, as well as China, at EBITDA level, if we normalize, they are almost in line with Symphony India business.
What is the EBITDA for the air cooler business in India? Also the INR 542 crore.
I do not have right now.
Small part.
I have mentioned the gross margin percentage. Gross margin, that is the operating margin percentage on a consolidated basis, was about 46% in line with year before, despite there has been major turmoils and summer-related disturbances. Neither there has been a pricing pressure and despite cost pressure we have, due to variety of strategies and initiatives, maintained that.
This is at console level. As far as on a standalone level is concerned, gross margin percentage has taken a hit of about 3%, but still it's hovering at about 45% plus. As far as EBITDA margin percentage is concerned, certainly it's linked with operating leverage, and that has taken a hit. On a console level, it is 15.5%, and on a standalone level, it is 17%, which year before was about 27%.
Yeah. That's what I have. Just wanted to check out on the competition in Indian markets, how much of a gap is there between our pricing and lower-end AC pricing in the market, branded AC?
In a way that is non-comparable product, non-comparable segment. Actually, the cooling capacity of a particular category of AC and air cooler should be compared. But still, depending upon the brand, the capital cost difference will be almost one-third.
Air cooler will be costing one-fourth or one-third. And when it comes to the electricity consumption, clearly the saving is more than 90%. In a way, payback period is one to two years from electricity saving.
Okay. Basically, you are saying if 100 is the AC price of the lower-end branded ACs, your price would be around 75?
Ours will be about 30- 40.
Oh, okay.
Lower by-
There is a lot of gap.
percentage.
Okay. Thank you very much.
Thank you. We will take the next question from the line of Shraddha Kapadia from SMIFS Limited. Please go ahead.
Hello, am I audible?
You are.
Thank you so much for the opportunity. I just wanted to know the round the years sales for Q4. You have mentioned it for the full year, if you could just help with the Q4's percentage also.
You are not clearly audible. If you are using speakerphone, please use the handset.
Yeah. Is this better? I needed to round the
Sorry to interrupt in between. Shraddha, your voice is not audible. It is breaking in between.
Hello. Yeah. I needed to round your portfolio percentage for Q4.
No. We don't have the separate figure for that. But as I said earlier, round the year product portfolio, EBITDA on a standalone level as well as console level is high single digit percentage. This is despite we are intentionally building with a lot of one-time costs, but they are totally booked to P&L, including trade channel related costs, advertisement, sales promotion costs, and variety of other launching costs.
But still, it is in high single-digit percentage and has a great potential to be in line with our air cooler category. In some of the categories, in fact, it has already reached. Say, for example, Large Space Venti-cooling, EBITDA margin percentage now stands even higher than the residential air cooler category.
Sure. Thank you so much. Also, the other expenses are significantly higher versus the historical levels. Any factors which has led to this high increase, and is it because of the deleverage, or how should we look at it going forward? Plus, also the PVC increase which has been witnessed recently, if you could throw some light on that also.
No, there has been huge cost increase, undoubtedly. But at least in current quarter, that is June quarter, we have the benefit of old inventory, which was at a lower cost. Overall, it seems that there won't be material impact, at least in June quarter, at a gross margin percentage.
It may be few points here and there, but as fully new production takes place and starting 1st July, we will be in a position to pass on entire price increase in one way or other way. Cost increase will be passed on. Yeah.
Okay, sir. Thank you so much.
Thank you. A reminder to all the participants, you may press star and one to ask a question. Thank you very much. Ladies and gentlemen, we will take that as the last question. I now hand the conference to the management for the closing comment. Thank you, and over to you, sir.
Okay, thank you very much for your participation early this morning, and we look forward to hosting you next quarter. Thank you, and have a great summer. Bye.
Thank you, members of the management. On behalf of ICICI Securities, we conclude the conference call for Symphony Limited. Thank you all for joining us, and you may now disconnect your lines. Thank you.