Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Symphony Ltd (NSE: SYMPHONY) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Achal Bakeri — Founder, Chairman & Managing Director
Nrupesh Shah — Managing Director – Corporate Affairs
Analysts:
Manan Goel — Analyst
Unidentified Participant
Shraddha Kapadia — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Symphony Limited Q4FY26 earnings conference call hosted by ICICI Security. 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 0 on it at Stone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Manan Goel from ICICI Security.
Thank you. And over to you sir.
Manan Goel — Analyst
Thank you. On behalf of ICICI Security, we welcome you all to Q4 and FY26. Result conference call of Symphony Limited. Today we have with us senior management represented by Mr. Achal Bakeri, Chairman and Managing Director. Mr. Nirupesha, Managing Director Corporate Affairs. Mr. Rajesh Mishra, Chief Growth Officer. Now 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 and A session. Thank you.
And over to you sir.
Achal Bakeri — Founder, Chairman & Managing Director
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. And as is our custom, my colleague Nupesh Shyam, a Corporate office Managing Director Corporate affairs will be making a brief presentation following which we’ll take your questions. The customary safe harbor rules apply and I thank ICICI securities for hosting this call. Over to Nupesh Bhai.
Nrupesh Shah — Managing Director – Corporate Affairs
Hello. Good morning to everybody. Thanks for joining Symphony’s FY26 investor call and earning presentation coupled with Q4.26. So we’ll take you through performance highlights. Second is Australia reset US business and the related IPR consolidation. So coming to financial on a console basis. For the year FY26 top line stood at 1131 crore down by 28% y o y leading to PBT of rupees 1549 crore down from 326 crore. After providing for exceptional one time impairment provision and net of some of the write back the PAT stands at negative 141crore.
The capital employed in the core business on a console basis stands at 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 percentage. Coming to standalone performance, Symphony India revenue is 765 crore down from 1182 crore. PBT stands at 164 crore down from 329 crore. And profit after tax after exceptional Items stands at 166 crore. About exceptional items, we will deal with it later on and capital employed on the core business that is in Symphony India was 78 crore translating into ROCE percentage of 149.
Our total treasury as on 31st March 26th stands at 287 crore. After remitting and investing 165 crore in Australia to repay its long term and short term loan which was converted into equity and now impaired. For Quarter 4 FY26 I.e. March Quarter on a consolidated basis Revenue is 338 crores down from 488 crore Gross Margin Percentage the noteworthy figure noteworthy barometer of the profitability is intact. It is 46.4% in line with previous years. Of course Ebitdita has taken a toll mainly on account of economies of scale and operating leverage and hence EBITDA Percentage stands at 15.5 percentage down from 21.2 percentage.
It is also noteworthy that. Beyond India summer products so now we have short form it as a BISP portfolio or BIS products which includes large space, ventilated air, cooling tower, fan, kitchen fan, water heater, exports from India and sales in the rest of the world that is the product portfolio not dependent on Indian summer that constituted 558 crore of sale out of about 1100 crore plus that is 49% of FY26 revenue in a way through partly product diversification and geographical diversification de risking the business.
During the year IMCO Mexico registered flattish revenue with overhang of channel inventory. GSK China is doing well, registering decent top line as well as profitability growth. But another important feature is during the year GSK China out of its internal accruals and realization from its assets repaid 26 crore of loan to Symphony India. And hence as on March 26th net loan repayable to Symphony India is just 4 crore from peak of 60 crore plus. And this 4 crore of loan repayment is expected in next 6 months whereby GSK China in line with income Mexico will be debt free.
In terms of the long term loan. USA 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 Technology Australia is concerned, I will come to it later on and board of directors has declared final dividend of rupees 5 on a face value of rupees 2amounting to total annual payout of rupees 62 crore, almost 60 percentage of annual consolidated pat in line with our stated payout policy.
This payout is despite taking an impairment coming to Symphony India Q4.26 the revenue stands at 300 and revenue stands at 199 crore down from 368 crore. March 25 was of course high base. But March 25 top line was also on account of huge unbilled advances as on 31 December so high base and to an extent extended billing to next quarter. There was until the 31st of March. Channel caution because of inventory overhang and bad summer of 25. 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. And 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 four to six weeks of decent summer sales. And as far as India is concerned, beyond India summer products revenue registered at 192 crore out of standalone top line of 765 crore.
That is slightly about 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. Yeah. So now dealing with Australia reset US business and on account of that IPR consolidation at a level of Symphony India. So board of directors and company have decided to take a balance sheet reset including impairment in relation to Australia business.
So entire equity investment made in Australia. Worth of 350 crore cumulatively including about 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 Zinc fed US business by making it a direct subsidiary of Symphony India. And Bonnet’s equity has been bought over by Symphony India at a valuation of rupees 29 crore. In addition to that some of the IPRs especially Bonaire brand of Australia is valuable particularly for US business and other markets and hence those IPRs have been also bought over by Symphony India for about 23 crore.
So company fully recognizes investors concern about the performance of Australia, its capital efficiency year after year, the losses it has posed and investors always like to have disciplined capital allocation. And 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 market such as Australia and USA and added established brand portfolio. However, post acquisition Australia business encountered materially different operating environment with a series of external shocks. Just within 15 to 16 months post acquisition we witnessed Covid related world’s longest lockdown for almost 21 months. And hence we didn’t get the time to really integrate and synchronize the business. On top of it, due to changes in local regulation, we had to exit certain products, especially gas based products.
But promptly we replaced them by new set of products more be fitting to local market. Coupled with 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 nutshell despite all that, in last two years Australia business has registered losses of 60 crores including 35 crores in FY26. This is after accounting for decent performance and profitability of USA Business.
Hence to further reduce the financial overhang and carrying risk, Symphony infused 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. So 2:10. At that extent loan has been repaid. Coming to specific impairment on a standalone basis. In Symphony India we have taken an impairment of 298 crore in addition to 50 crore taken last year. It means entire equity investments totaling 348 crore has been impaired and at the cost of repetition, nothing more to impair or in other words nothing more to lose.
And at a console level where technically accounting assets are different. So all put together the impairment is 259 crore including goodwill is some of the intangible assets and deferred tax. So to that extent post TBT PAC is impacted for the quarter and year. The board of directors and company has also decided and very importantly and categorically that no further capital investment or allocation will be made to Australia business. So whatever we were to invest, whatever we were to commit, we have done enough.
Along with this we have acquired the shareholding of USA business directly in Symphony India amounting to 29 crore and IPR’s worth of 23 crore. Totally 52 crore. And this 52 crore will be remitted out again out of treasury of India in current week or next week. And from remaining balance outstanding working capital loan which is guaranteed by Symphony India. This proceed will be used to repay the working capital loan. Yeah. Next. Yeah. And then after. These are the financial statements more for your reference.
Standalone as well as consolidated on quarterly and annual basis. Yes. So we can have Q and A.
Questions and Answers:
Operator
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 the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants you are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queues remix. A reminder to all. You may press star N1 to ask a question. We have the first question from the line of Ankur Kumar from Alpha Capital.
Please go ahead.
Unidentified Participant
Hello sir. Thank you for taking my question. Sir, you. You said Southwest and Central India have seen decent performance in April, but north has it been weak. So can you comment overall company level, how are things and what percentage of our business comes from the north part.
Nrupesh Shah
So it’s 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. And 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 have, we may have a fairly good summer company as a whole.
Unidentified Participant
Sir, when you say fairly good, can you expect a double digit type growth and 15, 20% growth, how should we look at it?
Nrupesh Shah
No. If you can give me for next two, three weeks what’s going to be the precise weather, then I can make some analysis and give that forecast.
Unidentified Participant
And 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 in it was in 2024. So any any plans on that front?
Nrupesh Shah
Yeah. So no share buyback as of now. But in a way we bought back Australia company, we bought back Australia new loans and we bought back USA companies and it by doing the balance sheet reset
Unidentified Participant
But so given our stock price is quite low compared to one two years ago. So any. Any thoughts on share buyback for shareholders?
Nrupesh Shah
No. At the right time Marvel considered as always it was done and irrespective of anything there has been a decent out. But of course at the right time it can and will happen again with change in regulation.
Unidentified Participant
Sure sir. Thank you and all the way.
Operator
Thank you. We will take the next question from the line of Vinay Adkami from Hathaway Investments Private Limited. Please go ahead.
Unidentified Participant
Thank you for the opportunity. I just wanted to know what is the size of your US business in terms of sales and EBITDA and pat if you can share that and what is the loan outstanding?
Nrupesh Shah
So
Achal Bakeri
The
Nrupesh Shah
Size of US business in last five years have varied from. If I say in INR ranging from 30 crore to 140 crore. In other words, the potential is at least 140 crore. That is the kind of the sales we achieve. In FY26 US business sales was about 60 crore. And it’s. I don’t 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 Australia USA business.
Unidentified Participant
And what sells most in USA and what are the products that you sell there? Is this the same thing that you do in India or is there something additional there?
Achal Bakeri
Yeah, it is Air polar mainly. Air polar.
Unidentified Participant
Okay,
Achal Bakeri
So some products are some of them products which are sold in usa. Most of the products in terms of value are exported from India and the balance come from our plant in Mexico. But they are all air cooler essentially.
Unidentified Participant
Okay, and this tariff because of your Mexico tariff will not be a issue going forward. Of course now there is no tariff, but still.
Achal Bakeri
Yes. Fortunately by the time our products reach the shores of America, even this year the tariff had come down to whatever percent or so. So even from India it wasn’t really material. So but yes. And of course from Mexico there is no tariff. So all in all it’s become a non issue at the moment.
Unidentified Participant
Okay, can you. I don’t remember seeing your slide on the performance of each of your subsidiaries, gsk, China and Mexico. Can you just give us the sales and EBITDA Numbers of these two companies, the subsidiaries?
Nrupesh Shah
Okay, so about Imco Mexico for FY26 the top line stood at 182 crore and EBITDA 21 crore. For GSK China top line was 96 crore. And EBITDA of 8 crore. And for Climate Technology Australia top line was 182 crore. And including profit of USF business. The. Fact figure I have is negative 27 crore because there we had substantial interest outflow also.
Unidentified Participant
Okay, so now the City 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 City Australia going forward?
Achal Bakeri
So there we are to begin with again, you know, changing the business model to where we will have distributors across the country who will distribute products at the moment since 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 by the products from that go anywhere from India or China and warehouse them and then sell to the local dealers. So that is the plan. As far as your specific question about 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, you know, we sort of continue to build on what we have already done without draining, you know, resources anymore.
Unidentified Participant
Yeah, because you mentioned that the board has decided not a single penny more to be given to City Australia. Just was wondering how can a loss making company survive without any funding?
Achal Bakeri
Exactly, exactly. So essentially 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 side subsidiary.
Unidentified Participant
So what is the fixed cost of Australian subsidy now in a stripped down version for a monthly fixed cost?
Achal Bakeri
As of now it is. How much? It’s about. As of now the CoDV is about 505 to 5, 5 to 600, 500 to 600,000k per month which will, which includes significant warehousing know, rental cost and all which would also further reduce. So we would essentially just have, you know, the team and some office space which will manage the affairs over there. And that’s a similar arrangement that we have say in Brazil. And so we are basically going to replicate that kind of a model.
Unidentified Participant
Thank you very much.
Achal Bakeri
Yeah, you’re welcome.
Operator
Thank you.
Achal Bakeri
And of course, sorry to continue with the previous question. This 500 or 600k per month would further go down once the warehousing costs have been eliminated.
Operator
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 ICIC Security. Please go ahead.
Manan Goel
Hi. Thank you, sir, for the opportunity. So I have one question. Like, with multiple new entrants aggressively pricing the air coolers, so what’s the company strategy to defend their market share? And are you seeing any average selling price pressure at the trade level? Yeah,
Achal Bakeri
The last part you said, what kind of pressure at the trade level?
Manan Goel
Yeah, pricing pressure at the trade level.
Achal Bakeri
So Symphony has always, you know, been considered a sort of a premium brand, a mass premium brand, whereas all our other competitors have positioned themselves, you know, lower to Symphony for equivalent products. However, you know, we have the widest range of products in the industry and our products, you know, will be sort of, you know, positioned as various price points so that we are able to aggressively defend our market share and maybe even grow the market share, you know. So the advantage that we have of our product portfolio is that we are able to sort of have products at, you know, at the value for the value segment as well as for the premium segment.
Manan Goel
Got it. And sir, another question is like, the water heater category was launched in FY26. 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?
Achal Bakeri
So 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, you know, 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. Yes. And last year, until last year, it was launched in very limited markets. So the market, the geographical spread will also be wider this year. So, you know, the revenue will grow up. The products were very well received, you know, both from customers and channel partners.
Wherever they were, they were sold. So, 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 products ranges as well. So we have a whole suite of products from the spa, which is our flagship product, to products at, you know, at value. At value price points.
Manan Goel
Understood, sir. Thank you so much.
Operator
Thank you. We will take the next question from the line of Heather Kachwala from yes, securities. Please go ahead.
Unidentified Participant
Good
Nrupesh Shah
Morning. Am I audible?
Achal Bakeri
Yeah, you are.
Nrupesh Shah
So
Unidentified Participant
Thank you for the opportunity. Could you also provide the PAT numbers for
Nrupesh Shah
Your support pad number four, the
Achal Bakeri
Subsidiary.
Nrupesh Shah
So for climate Technology Australia at PAT level it was negative 27 crore before exceptional item. For income Mexico it is positive 6 crore. For GSK China before exceptional item it is positive 6 crore. And post exceptional item it is 49 crore. And Symphony Brazil it is negative 3 crore.
Unidentified Participant
And thank you for that sir. And what do you expect the growth like looking forward in these subsidies, what would you guide for? How should we look at them
Nrupesh Shah
So very clearly with this Australia reset balance sheet reset. Subsidiaries will incrementally contribute to the profitability. And 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 5 crore. There is no symphony outstanding loan to income Mexico since years and years. And in GSK which was in excess of 60 crore to be precise 67 crore. Now loan outstanding is just 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.
Unidentified Participant
Okay sir, thank you for that. That’s it for myself,
Operator
Thank you. We will take the next follow up question from the line of Vinay Nadkarni from Hathaway Investments Private Limited. Please go ahead.
Unidentified Participant
Yeah, thanks. Thanks for the opportunity. Again, just two questions on the Indian business. When you said overall business was around 1100 crores and 558 crores coming from BISP, so balance 542 I presume would be from the Indian operations alone. When I look at how is the EBITDA level playing in these two geographies? I mean these two segments,
Nrupesh Shah
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 3, 4 years, at EBITDA level it is in a decent high single digit margin percentage.
Unidentified Participant
Okay, 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?
Nrupesh Shah
No. So for sure it has a potential to be in line with our air cooler business
Achal Bakeri
With operating leverage and
Nrupesh Shah
With operating leverage. By the way, as far as our subsidiaries are concerned, particularly info and even US business as well as China at EBITDA level, if we normalize, they are almost in line with symphony India business.
Unidentified Participant
Okay, and what is The EBITDA for the air cooler business in India. Also the 542 crores roughly
Nrupesh Shah
Right now. But mentioned the gross margin percentage. So gross margin that is the operating margin percentage percentage on a consolidated basis was about 46 percentage in line with year before despite there has been major turmoils and summer related disturbances. So 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 our standalone level is concerned. Government gross margin percentage has taken a heat of about 3 percentage but still it’s hovering at about 45 percentage 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 and a half percent and on a standalone level it is 17 percentage. Which year before about 27 percentage. Yeah,
Unidentified Participant
Yeah, yeah. That I have just wanted to check out on. Now the competition in Indian markets, how much of gap is there between our pricing and lower end AC pricing in the market? Branded AC
Nrupesh Shah
Way that is non compatible product, non comparable segment. Actually the cooling capacity offer particular category of AC and air quality cooler should be compared. But still depending upon the brand, the capital cost difference will be almost 1/4, 1/3. Alcooler will be costing 1/4 or 1/3. And when it comes to the electricity consumption clearly the saving is more than 90 percentage. So in a way payback period is one to two years from electricity saving.
Unidentified Participant
Okay, so basically you are saying if 100 is the AC price of the lower end branded ACs your price would be around 75
Nrupesh Shah
Hours will be about 30 to 40.
Unidentified Participant
Oh okay. Okay.
Nrupesh Shah
So lower by percentage.
Unidentified Participant
Thank you. Thank you very much.
Operator
Thank you. We will take the next question from the line of Shraddha Kapadia from Smiths limited. Please go ahead.
Shraddha Kapadia
Hello, I’m audible.
Nrupesh Shah
You are?
Shraddha Kapadia
Thank you so much for the opportunity. So I just wanted to know the down your care for Q4. You have mentioned it for the full year. If you could just help with the Q4 percentage also.
Nrupesh Shah
No, you are not clearly audible. If you are using speakerphone please use the handset.
Shraddha Kapadia
Yeah, so. I needed to round your. Sorry
Operator
To interrupt in between. Shraddha, your voice is not audible. It is breaking in between.
Shraddha Kapadia
Hello. Yeah, I needed to round your portfolio percentage for Q4.
Nrupesh Shah
No, so we don’t have the separate figure for that. But as I said earlier around 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 lot of one time cost but they are totally booked to P and L in including trade channel related costs, advertisements, 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.
And in some of the categories in fact it has already reached say for example lab space, ventilator cooling, ubidita margin percentage now stands even higher than resilience category.
Shraddha Kapadia
Sure, sure. Thank you so much. Also the other expenses are significantly higher versus the historical levels. So any factors which has led to this high increase and is it like because of the deleverage or how should we look at it going forward? Plus the pvc also the PVC increase which has been witnessed recently, if you could throw some light on that also.
Nrupesh Shah
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. And 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 the first of 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.
Shraddha Kapadia
Okay, so thank you.
Operator
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 the last question. I now hand the conference to the management for the closing comment. Thank you. And over to you, sir.
Achal Bakeri
Okay, thank you very much for your participation this morning and we look forward to hosting you next quarter. Thank you and have a great summer. Bye.
Operator
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.