Symphony Limited Q3 FY26 Earnings Call Summary

Summary

Symphony Limited - Q3 FY 2026 Earnings Call Summary Thursday, January 29, 2026, 11:00 AM IST

Event Participants

Executives 5 Achal Bakeri (CMD), Amit Kumar (Group CEO), Rajesh Mishra (CEO International), Nrupesh Shah (MD Corporate Affairs), Girish Thakkar (CFO)

Analysts 5 Aditya (UK Capital), Aditya Bhartia (Investec), Balasubramanian (Arihant Capital), Harsh Gokalgandhi (Renaissance Investment), Keshav Lahoti (HDFC Securities)

Financials & KPIs (Standalone)

Geographic & Segment Commentary

• Domestic India: The organized market share in India stands at 35% of the total ₹5,000 crore addressable market. Symphony maintains market leadership with an organized share larger than the next five players combined.
• Counter-Seasonal / Non-Core: Products selling round-the-year (large space cooling, water heaters, exports) contributed 26% of standalone top-line in 9MFY26. At a consolidated level, these categories represent approximately 50% of the revenue mix.
• IMPCO (Mexico): 9-month revenue reported at ₹101 crores with a cash profit of ₹9 crores. Management noted strong traction due to zero tariffs on air coolers between Mexico and the US despite broader 50% regional tariffs.
• Climate Technologies (Australia): 9-month revenue of ₹128 crores with an EBITDA loss of ₹8 crores. The company is working toward hitting PAT-level profitability as US-based subsidiary sales gain traction.
• GSK (China): 9-month revenue of ₹80 crores with a PAT of ₹7 crores (excluding exceptional IPR sale gains). The segment has successfully turned around operations.

Company-Specific & Strategic Commentary

• IB Transaction Rollback: Board decided to roll back the divestment of IMPCO (Mexico) and Climate Holdings (Australia) after 10 NDAs were signed. Valuation offers failed to meet management expectations and strategic sourcing requirements.
• Category Expansion (Water Heaters): Management spent over ₹10 crores on branding in Q3 to expand into 8 states. The product is now available across General Trade, Modern Retail, and D2C channels.
• Market Positioning: Symphony maintains a 4.8/5 Google rating across 34,000 reviews. Google Analytics data (July '24 - June '25) shows 2 out of 3 customers search for “Symphony” specifically when looking for air coolers.
• Accounting Adjustments: Management expects to take appropriate accounting treatments for intangible assets and financial investments in subsidiaries as of March 31, 2026, based on auditor guidance and historical performance.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

D2C and Channel Contribution

• Question: What is the sales split for modern trade/e-commerce and the status of D2C? (Balasubramanian)
• Answer: D2C has been profitable at the PAT level since last year with margins in line with General Trade. Specific channel splits are withheld for competitive reasons. (Nrupesh Shah)

Divestment Rationale

• Question: Why was the international sale rolled back despite strong initial interest? (Keshav Lahoti)
• Answer: There was a significant gap between the offered valuation and management’s internal expectations. Geopolitical shifts also make the Mexico-US corridor more strategically valuable for Symphony to hold. (Nrupesh Shah/Achal Bakeri)

Market Dynamics

• Question: Is the unorganized to organized migration continuing? (Amit Kumar)
• Answer: Yes, the primary growth driver is the migration from metal coolers to plastic branded coolers. The market is showing a K-shaped recovery where the lower end migrates while the premium end remains stable. (Amit Kumar)

Financial Reconciliation

• Question: Why is consolidated revenue lower than standalone in some segments? (Aditya Bhartia)
• Answer: This is due to the elimination of inter-company sales and unrealized profit in stock for products sold to subsidiaries but not yet sold to final customers. (Girish Thakkar)

Key Takeaway

Symphony Limited reported a flattish standalone Q3 FY26 with revenue of ₹182 crores, while EBITDA was suppressed to ₹31 crores due to strategic marketing investments of ₹11 crores in the new water heater category. A major strategic pivot occurred this quarter with the decision to cancel the divestment of its Mexican and Australian subsidiaries, citing unfavorable valuations and renewed growth potential in the US-Mexico corridor due to favorable tariff structures. The company’s core air cooler business continues to dominate the organized market with a share exceeding its top five competitors combined, supported by a “normalized” trade inventory ahead of the peak summer season. Strategic focus remains on growing the non-core/counter-seasonal portfolio, which now accounts for 26% of domestic revenue and roughly 50% of consolidated revenue. Looking forward, management remains focused on P&L-led growth and expects to take non-cash accounting adjustments on subsidiary valuations by FY26 year-end.