Ladies and gentlemen, good day and welcome to the Q3 FY 2026 earnings conference call of Symphony Limited, hosted by SMIFS Institutional Equities. 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 the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shraddha Kapadia from SMIFS Institutional Equities. Thank you, and over to you, ma'am.
Thank you, Michelle. Good morning, everyone, and a warm welcome to Q3 FY 2026 earnings conference call of Symphony Limited. We have with us today the senior management team of Symphony Limited, represented by Mr. Achal Bakeri, Chairman and Managing Director, Mr. Nrupesh Shah, Managing Director, Corporate Affairs, Mr. Amit Kumar, Executive Director and Group CEO, and Mr. Rajesh Mishra, CEO, International Business. I would now like to hand over the call to management. Thank you, and over to you.
Good morning, everybody, and welcome to this Symphony's weekly, sorry, quarterly conference call. As we do each time, we will have a short presentation, followed by Q&A. We will all be here for the Q&A. The presentation will be done by Nrupesh Shah, the Managing Director of Corporate Affairs. Thank you very much. Nrupesh, over to you.
Yeah. Thank you, and welcome to Q3 conference call of Symphony Limited. There is a customary disclaimer statement to start with. This is about the Symphony standalone performance, Symphony Limited. For this quarter, YoY, it has been flattish, that is INR 182 crore of top line versus INR 182 crore previous year for December 2024. At EBITDA level, it is INR 31 crore versus INR 34 crore, mainly on account of elevated advertisement and sales promotion expenses of water heater. At PAT level, it stands at INR 34 crore versus negative INR 4 crore. Just to remind you, in December 2024, we had to take the write-off of Pathways, and hence it has turned negative considering that exceptional item. In current quarter, we have recovered additional INR 4 crore from Pathways, leading to total recovery of INR 8.5 crore in current year, nine months vis-à-vis write-off of INR 50.2 crore.
For residual recovery, necessary strong legal actions are under various stages. Also to point out, as shared earlier, in Symphony Limited India, there are broadly two categories. One is household electrical, and second is the products selling around the year and/or counter-seasonal products. In nine months ending on 31st December 2025, product selling around the year have contributed almost 26% of the top line. At this point of time, that is as on 31st December, trade inventory seems to have normalized as it is normally supposed to be at this point of time, mainly on account of revenue contradiction and lower listing by the trade in September 2025 quarter. Board has announced third interim dividend of INR 2 per share, amounting to about INR 14 crore and total interim dividend during the year about INR 28 crore.
Coming to standalone financials of nine months, the top line is INR 566 crore versus INR 814 crore. Gross profit margin percentage stands at 48.3%. EBITDA at about INR 81 crore versus INR 188 crore of previous year for nine months. At a PAT level, which is higher than EBITDA, one on account of treasury income. Secondly, exceptional income after providing gratuity additional provision as per revised Code on Wages, as well as there has been profit in Forex fluctuation. All put together at PBT is INR 123 crore leading to PAT of INR 99 crore versus INR 132 crore of December 2024, nine months. For Symphony Limited's standalone, capital employed in trailing 12 months based on monthly average stood at INR 49 crore, translating into ROCE, that is PBIT percentage on full capital employed, about 371% and return on net worth percentage of 19% versus 24%.
Treasury is INR 460 crore versus INR 488 crore after robust payout last year, and this excludes loans and investments to subsidiaries, all in all amounting to INR 277 crore. All inclusive, it is slightly less than INR 800 crore, including equity loans and investments to subsidiaries. Coming to consolidated financials. At console level, the top line is INR 233 crore versus INR 242 crore. Gross profit margin percentage stands at 48%, YoY down by about 2%. EBITDA, which is a business EBITDA, is INR 24 crore versus INR 35 crore, while PAT is INR 20 crore versus negative INR 10 crore due to results explained earlier. Coming to console financials for nine months, the top line is about INR 793 crore, that is down by 27% versus INR 1,088 crore for corresponding period. EBITDA stands at INR 76 crore, while PAT is at a console level INR 81 crore versus INR 134 crore.
Capital employed on a console basis for trailing 12 months is INR 343 crore, that is all inclusive Symphony Limited standalone and subsidiaries, including capital employed in Climate Technologies, translating into ROCE percentage of 54% and return on net worth of 21%. Just today in the board meeting, the IB transaction has been reviewed, and it has been decided to roll back the proposed IB transaction to divest the stake in IMPCO Mexico and Climate Technologies. As it was updated from time to time, two investment bankers were appointed. There was a global outreach. More than 10 non-disclosure agreements were signed with some of the global consumer durable companies, some of the financial investors. However, on account of evolving geopolitical situation as well as the results which we are bound as per NDA.
But in nutshell, the valuation offered didn't meet with our valuation expectation as well as broader strategic consideration. And hence, it has been found appropriate to roll back, and Symphony will like to nurture the business. And the silver lining is, considering the tariff situation, there seems to be a great potential in Mexico as well as U.S., and we are already witnessing decent traction. Coming to part 2 regarding this IB transaction. Whatever our financial investments in various forms, whether it is in terms of equity investments, intangible assets, et cetera. As on 31st March 2026, my accounting year, as auditors will advise and guide, appropriate accounting treatment will be taken, which is quite different from whatever business transformation may happen later on, and that accounting treatment is normally done based on the past actual financial performance. Just as a guidance.
Repeatedly in various forum, we are being asked as to what is Symphony's market standing vis-à-vis some of the published reports. We thought it appropriate to take you through very specifics. At a primary level, the market size is about INR 5,000 crore. Market comprises of different segments or different kind of the players. Symphony being by far the market leader. There are national players as per published report, which many of you are aware. As per the published report, there are eight players having sales in excess of INR 100 crore. And that too, sales in excess of INR 100 crore is at customer level, not at a company level. In addition to that, the players whose consumer level sales is less than INR 100 crore, but they call themselves or many of us understand them as national players. That is third category. Fourth is our regional players.
They may have a strong presence in some states or part of the state and very completely fragmented and unorganized market. Organized market share in terms of the value percentage is about 35%. In published report, in research reports, to which we as well as many of you have access, it accounts for only some of the segments. The segments which it doesn't account for, but that very much forms part of our sales, and that too, that part of the sales constitutes almost 40%-50% of Symphony sales to dealers and distributors. And those segments are rural and semi-urban, e-commerce, quick commerce, D2C, institution sales. We are clearly excluding Large Space Venti-Cooling from this because that we treat it as product selling round the year or counter-seasonal product.
Also to draw your attention, none of other national players at a company level, all segments put together, have turnover. The second most company's turnover is around INR 250 crore. And top three to four players put together, combined household domestic air cooler sale is less than Symphony sales. And we clearly believe that for us, this is a structured growth story for medium to long term on account of variety of reasons as known and shared from time to time. Also, happy to share with you some of the data and details as validated by external agencies. In terms of the Google rating and review, out of more than 34,000 rating and review, Symphony score is 4.8, by far higher than most others.
In terms of the share of voice on Kiwi, because that is authentic data, otherwise we know all put together our brand reach far, far higher than number two and number three player. Again, everywhere we have cited the source. Even in terms of the Google search, out of millions and millions of customers who are looking for and searching air cooler, as per Google Analytics from July 24 to June 25, two out of three customers look for Symphony while looking for an air cooler. Again, on our right-hand side, in terms of the market leadership, brand preference, channel partner endorsement, as well as pricing premium. Again, as per each of these reliable external source, you can see that Symphony scores far, far higher than peers. Thank you. With this, we can take question- and- answer.
Thank you very much, sir. We will now begin with the question- and- answer session. Anyone who wishes to ask questions may press star and one on the touch-tone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions queue attends. You may please press star and one to ask questions. The first question is from the line of Bala subramanian from Arihant Capital. Please go ahead.
Good morning, sir. Thank you so much for the opportunity. Sir, on the premium side, 95 - 120 liter categories, I think the market, we have seen input cost deflation as well as the market is also flattered. Just want to understand how our competitors are doing in these segments, whether they are doing aggressive discounting to gain market share. How is our volume growth in these segments, and are we seeing any compression in this premium in recent quarters? This is my first question, sir.
Broadly, in terms of the premiums that we are talking about, the market is going into what we call a K-shaped kind of movement, where the lower end of the segment, which is migrating particularly from metal coolers to plastic coolers, that continues to be at a lower price point. The good news there is that at least the migration from metal to plastic and in some sense from completely unorganized to regional and some branded segment has happened. So over time, this is a segment which at this point in time is not at a premium, but we expect that this will move into the premium categories over time. The other end is the actual existing premium category, wherein the prices have broadly been stable. Some of the retail models that we have launched also, they are at a higher premium compared to our average portfolio.
T hat's something which is a small chunk of the overall portfolio that we have.
Okay, sir. And sir, organized as well as unorganized air cooler market are growing at same rate, or is there any diversion happening? How is our growth coming? It's primarily from market expansion or premium initiatives, or share gain from organized or unorganized players. What is the split, sir?
A bigger chunk of the growth is coming from the movement of consumers from the unorganized to the organized segment. As I said, the entire metal cooler market is mostly unorganized. While there is some organic growth even in the traditional plastic coolers market, a bigger chunk of growth in the market is happening from unorganized to organized movement.
Okay. Sir, my last question, what percentage of sales is coming from modern trade and e-commerce versus traditional dealers in Q3? How are margin structures evolving across these channels? What investments are being made in direct-to-consumer capabilities to mitigate long-term channel dependency risks?
About D2C sales to answer first, it has already turned not only EBITDA, but at a PAT level profitable since last year. And at EBITDA level, its profit margin is in line with our GT sales. Coming to specific breakup between traditional channel versus large format stores, on account of competitive reasons, we are not sharing the data. Again, coming back to D2C, the kind of investments, whatever investment was to be made, we have already routed through P&L and that has been already written off. We believe for all such kind of initiatives, including the water heater, which we have launched last year, all such kind of expenditure, we prefer to route through P&L, even though the variety of benefits may be medium-term to long-term.
Got it, sir. Thank you.
Thank you. The next question is from the line of Shraddha Kapadia from SMIFS Institutional Equities. Please go ahead.
Hello.
Yes.
I would just like to understand that the India growth which we have, is it majorly because of the air coolers, counter seasonal products, channel normalization, or are we gaining market share?
In the current quarter, Shraddha, as you know, as someone who knows this sector and tracks it, the current quarter is less about the market share, it is more about the placement in the channel. The October to December is where we place the products in the market, but there is no market share per se that we talk about for this quarter. Also regarding the channel and the counter seasonal products, that is something we are focusing on. As Nrupesh Shah said, at this point in time, the overall share of that in the business is slightly upwards of a quarter of our business. It has steadily increased over the years, and that is where we are right now.
Sure, sir. If you could give a bit of details in terms of the inventory. We have mentioned that the channel inventory is normalized. If you can give more update on that.
On that, Shraddha, basis the estimates we have of the inventories available with our partners at the distributor and dealer level, at this point in time, the inventory in the market is almost similar to what we had around the same point in time last year. Some of these lower primary sales that we did this year in the September quarter and kind of same sales as last year. Net effect is, at present, the inventory in the market is similar to last year. Hence, we are saying it is kind of normalized.
Sure, sir. Thank you so much. I will fall back in the queue for further questions.
Thank you.
Thank you. The next question is from the line of Keshav Vijayratan Lahoti from HDFC Securities. Please go ahead.
Hello. Hi. Thank you for the opportunity. This time you haven't mentioned subsidiary financials in presentation. Can you give a sense how has been their performance for this quarter, and how are the things looking for the next quarter? What sort of growth and margin we should expect?
Sure. Of course, we have the data in details, but to keep the presentation crisp, we are not sharing. But to share with you subsidiary-wise, for Climate Technologies Australia, nine months as a whole, the top line has been INR 128 crore versus INR 123 crore. At EBITDA level, it is -INR 8 versus -INR 14, and at a PAT level, it is -INR 18 versus -INR 22 crore. In terms of the cash loss, it is -INR 15 crore versus -INR 25 crore in terms of the cash loss. Coming to IMPCO Mexico. For nine months it is INR 101 crore versus INR 135 crore. At EBITDA level, it is INR 4 crore versus INR 17 crore, and at a PAT level, it's -1 versus 10, but at a cash profit level it is positive INR 9 crore versus INR 12 crore.
Just to remind you, after three bumper years in IMPCO Mexico, until March 2024, it more than doubled its top line and almost tripled its profitability from 2021 to 2024. The summer of 2025 was subdued, and that has led to this performance. Otherwise, structurally and in terms of the overall performance, IMPCO Mexico is very well poised. About GSK China, nine months top line is INR 80 crore versus INR 75 crore. At EBITDA level, it is INR 8 crore versus INR 14 crore, and profit after tax, including exceptional gain on account of sale of IPR, it is INR 49 crore versus INR 10 crore. But we need to exclude that, and hence it is almost at a PAT level about INR 7 crore versus INR 10 crore. So in a nutshell, for nine months, each of the subsidiary has delivered like this. About Symphony Brazil in totality, not being material, not sharing.
Of course, we do have the details and data.
Understood. Got it. Just to tell you, we have just taken a decision to sell it off. Now we are rolling it back. So what sort of valuation gap was there? Because we were told you were very positive this might happen by this year and possibly early next year. And we had a strong interest, as you highlighted from more than 10 parties. So why was the valuation so poor? Apparently nothing so much has changed geopolitical, we take a decision, we want to roll it back. Can you give some more colors on it? What was the thought process?
Sure. As we conveyed, there was strong interest by several multinational consumer durable companies from Europe, from China, from North America, apart from also financial investors as well as PE investors. However, when it came to the valuation vis-à-vis our expectation, as well as the way in which we wanted to treat it strategically in terms of further sourcing of product by us for those markets-
From us.
From us, we didn't find it favorable. About gap of the valuation, you will appreciate that with each of the prospective buyer, we have entered into NDA. Legally, we can't disclose as we have also announced on the stock exchange as well as in our earning presentation as to precisely what kind of the valuation was offered or what was the gap. W e believe that this is suffice to mention that there was a gap, and obviously gap was not insignificant. Had it been insignificant, we would have gone ahead. Having said that, the silver line is, considering this evolving geopolitical situation, now in Mexico, despite they have imposed tariff of 50%, as far as air cooler is concerned, there is no tariff.
Even between Mexico and U.S., as far as air cooler is concerned, there is no tariff, and there seems to be a very strong traction, especially from both the markets. Considering our position as well as our presence in multiple geographies, this may work beneficial if we treat it as a silver line.
The U.S. company, as you will know, is a subsidiary of the Australian company. So the prospects that we see in the U.S. company are bound to benefit the holding company, which is the Australian company as well.
Understood. Got it. That is helpful. When should we expect this Climate Technologies Australia to hit the profitability part? Should we expect it should be back to profitability on PAT as well as cash level from next year onwards?
Well, we are working towards that, but we cannot really confirm anything yet. Time will tell.
Understood. But will it be a fair assumption, at least things will be on improving path from here onwards?
You could say that, yes.
Got it. One last question from my side. How has been the non-core category growth this quarter, and how much it was as a percentage of mix?
As it was shared earlier in the presentation, in Symphony India, it contributes more than 25% in last nine months, and it is growing steadily, which comprises of Large Space Venti-Cooling, water heater, tabletop and kitchen cooling appliances, and exports from India. They are not dependent upon Indian weather or Indian summer. If we consider at a console level, then at a console level, it is like 50/50 percentage because overseas subsidiaries, in a way, air cooler and other product sale is counter-seasonal or coming from other geographies. Of course, from subsidiaries as a whole, still, they are not contributing big chunk to profitability. However, we have to bear in mind, IMPCO Mexico and GSK China have not only turned around, but they have contributed significantly.
What was your growth non-core for this quarter and as a nine month as a whole?
I think more meaningful to share for nine months rather than quarter to quarter due to variety of reasons. We do not really do the business or plan or strategize quarter to quarter, even though we do have a budget. But on nine months YoY, the pie has grown, and it is continuously growing.
Possible to give a number for nine months and three months both, because at least we can get something how the cooler is doing.
Yeah. Right now we do not have readily available, but one-to-one separately it will be given. By the way, until September quarter, we have given the figures and data.
Right. Okay. Thank you. That is it. I am good.
Thank you.
Thank you. A reminder to all the participants that you may please press star and one to ask questions. The next question is from the line of Aditya Bhartia from Investec. Please go ahead.
Hi. Good morning, sir.
Hi. Morning, Aditya.
Hi. Morning. So two questions.
Mr. Bhartia, your audio is too low, sir. Sir, your audio is low.
Hello.
We can barely hear you.
Hello.
Yes, sir. We can-
Now we can hear you.
Now it's better. Yes.
The first one is on the difference between standalone and console revenues. If you just consider continuing operations, the revenues in the console entity are slightly lower than standalone. Is it a case that we had sold certain units to, let's say, IMPCO or Climate Tech, which have remained unsold? How should we think about it? What proportion of our standalone revenues would we say to these companies at this stage?
Aditya, I think mainly the decrease in the console turnover in continued business is mainly due to the stock. Whatever we have sold to the subsidiary, and these are lying at stock at subsidiary level, it has been removed from the console turnover as per the accounting standards to show the continuing business. It automatically goes to the discontinuing operation. We should look at the continue plus discontinue put together for this purpose.
Sure. Understood, sir. Is it possible to give an indication of what proportion of our revenues would be sales to group companies at the standalone level, both for third quarter as well as nine months?
For the quarter, it is around INR 20 crore. You can, INR 20 crore, out of that INR 182 is to export to subsidiaries.
But keep in mind, Mr. Bhartia, respective company records the turnover, but when it is a console turnover, as reported, inter-company sales or exports, that completely knock-off. There is no way double counting or duplication if at all there is any question about it, and hence console is a net sales.
Sure. Absolutely, sir. My second question is, if you could give us some indication on how the water heater business is faring, which all states are we currently present in, how large the business could have become, and what are your plans regarding the product category from a two, three-year perspective? Thank you.
Aditya, as you know, water heaters is a fairly mature category. We have introduced a product line which is pretty innovative in its offering. We have gone into the market with a sales plan. Last year we had introduced the product in the Karnataka and Telangana market.
This year we have expanded this portfolio to select markets in the north, overall covering about eight states at this point in time. Also, last year we had launched it into organized retail, and this year we have expanded this into the general trade also in the markets that you mentioned. In addition, we are selling on our D2C and e-com channels. Over the next two years, I expect that we would roll this out in more markets and stabilize the business from where we are to a higher trajectory.
Perfect, sir. That's helpful. If you could just give some indication on how large you see the business becoming, in case you can share that would be helpful.
There are targets and aspirations set, Aditya, but just allow us to perform and then maybe once our numbers reach a meaningful scale, we will definitely talk about it.
Sure, sir. Thank you.
Thanks.
Thank you. The next question is from the line of Harsh Gokalgandhi from Renaissance Investments. Please go ahead.
Yeah, hi. Good morning. Thanks for giving me an opportunity. Sir, I just want to have two questions, mainly revolving around our market share. Firstly, you said that INR 5,000 crore market size, and we are somewhere around 35% within the organized. So if you can just help me bridge the understanding gap. We are at roughly INR 1,200 crores on our top line. So if you can just help me understand the market share. That is my first question. Secondly, on a medium-term basis, we want to understand how has the market share fared for us as a company. Yeah, that was the question I had.
Harsh, first, a small connection here. The 35% we talked about is actually the share of organized business in the total addressable market. If you recall, about 10 minutes back, we were talking about a significant metal cooler market and unorganized market. 35% is the share of organized business into the overall air coolers market. And within that organized business, as Nrupesh Shah highlighted, we are the market leaders with a significant market share. The total numbers are more than the top next five players combined. That is where we stand in terms of the market share.
Okay. Understood.
Sir, any further questions?
I just had the second question as to how has our market share fared in medium-term? That was my second question. Has it deteriorated or improved any further from there?
Harsh, seeing broadly, if I look at last three or four years, within a percent or two kind of band, it has been fairly stable, I would say. If I look at, let's say even our FY 2022 or FY 2023 versus this year, the deltas on either side are barely about 1.5% against the medium that we are maintaining.
Understood. You're saying that even for, say, nine months, if I just had to consider, the major weakness would be on account of the weaker summers and not us losing market share.
Absolutely, yes. That's something that is true for us and a lot of products and categories and companies in the cooling product segment.
Understood. That's all from my end. Thanks a lot. Yeah.
Thanks, Harsh.
Thank you. Before we take the next question, a reminder to all the participants that you may please press star and one to ask questions at this time. The next question is from the line of Aditya from [audio distortion] Capital. Please go ahead.
Hi, sir. Thank you for giving me the opportunity for asking the questions. Am I audible?
You are.
Yes.
Sir, was the higher advertising and promotion spends in Q3 a one-off expense, and should we expect this higher level to continue going forward?
As explained and shared earlier, we have entered into water heater category just in 2024. Obviously, being a new product category, the advertisement and sales promotion expenses are far, far higher vis-à-vis normal advertisement and sales promotion on established category. In fact, more than 90% of the advertisement and sales promotion expenses of INR 11 crore incurred during December 25 quarter pertains to water heater in addition to whatever we spent earlier. You will appreciate that in our kind of product category, it is a necessary expenditure, even though the benefits accrue in the medium to long term, and we have to route through P&L.
Okay. Just some clarity on the market share thing. The mandatory BIS norms have helped the company to gain the market share from unorganized players. How big is the opportunity?
No, certainly, such BIS norms are beneficial to organized sectors. As it always happens in any industry, market leader gains the most, because it really differentiates the product and child versus men are really being differentiated, which was just narrative. Now, actually, it will be known and felt and seen.
But sir, because of some strict norms, some supply bottlenecks also have been created in other sectors. So how is it standing in this sector?
No, that's why our product and category focus plays a role. So whenever there are situations like this, we are well-prepared and we have tackled it, and we are not going to face any issue in that respect. And if you remember, even in June 2024 quarter, which was a bumper summer, most of the players faced massive logistics and supply issues. But in a very short time, we could more than double in just 60 days our production as well as supply. So that's where that agility, market leadership, and insight really work.
Sir, any additional market share we expect to capture going forward because of this?
Our focus is our top-line and bottom-line growth at a robust rate rather than market share.
Okay. Thank you. Thank you very much.
As long as we can increase the PBT of the profit, some additional market share or some less market share, we are not really bothered.
Okay. Thank you, sir.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Ms. Shraddha Kapadia for closing comments. Thank you, and over to you, ma'am.
Thank you very much. Hello. Thank you, Michelle. Thank you very much, Achal sir, Nrupesh ji, Amit ji, and Rajesh sir for giving us the opportunity to host the call. Any closing comments from your side, sir?
No. Thank you, everybody. Shraddha, thanks to you, and thanks to all the participants for sparing your valuable time, that too on a working day during market hours from 11:00 A.M. to 12:00 P.M. We really appreciate your inputs and looking forward to see you in next conference call or maybe in person.
Thank you, sir. Thank you, members of the-