Symphony

Symphony Limited reported a challenging FY26, with consolidated top line declining 28% year-on-year to ₹1,131 crores. Consolidated PBT (before exceptional item^📎s) fell significantly from ₹326 crores to ₹149 crores, leading to a negative consolidated PAT of ₹141 crores after a one-time^📎 impairment. Standalone Symphony India also experienced a revenue drop to ₹765 crores from ₹1,182 crores, resulting in a negative PAT of ₹166 crores. For Q4 FY26, consolidated revenue was ₹338 crores, down from ₹488 crores, with EBITDA margin at 15.5% compared to 21.2% in the prior year.

The Board decided on a comprehensive balance sheet reset for the Australian business, leading to the impairment of the entire cumulative equity investment of ₹348 crores, including ₹298 crores in FY26. This decision was driven by sustained losses of ₹60 crores over the last two years (₹33 crores in FY26) and the failure of the original acquisition thesis due to external factors like COVID and local regulatory changes. Symphony infused ₹165 crores in March to repay Australian long-term and working capital loans, and has committed to no further capital investment in the Australian business.

As part of the international strategy, the US business was ring-fenced and made a direct subsidiary of Symphony India, with its equity and Bonaire IPRs acquired for approximately ₹30 crores and ₹23 crores respectively. The Australian business model will transition from direct distribution to a distributor-led approach, aiming to reduce fixed costs, currently estimated at ₹500K-600K per month, by eliminating warehousing expenses. This restructuring is intended to remove the financial drag from Australia and make international operations more capital accretive.

IMPCO Mexico reported a top line of ₹82 crores and an EBITDA of ₹21 crores for FY26, with a positive PAT of ₹6 crores. GSK China demonstrated strong performance with a top line of ₹96 crores and EBITDA of ₹8 crores, and successfully repaid ₹26 crores of its loan to Symphony India, reducing the outstanding balance to ₹4 crores, which is expected to be fully repaid within six months. The USA business maintained strong momentum with ₹45 crores in sales for FY26, and profitability in line with domestic operations, despite geopolitical and tariff issues.

Symphony India's Q4 FY26 revenue was ₹199 crores, a decline from ₹368 crores, attributed to a high base in March '25 and channel caution due to inventory overhang. While South, West, and Central India showed decent performance from the third week of March, North and East India faced weather disturbances in April. Management expects a decent summer from the current week (May 3rd week onwards), anticipating a 4-6 week sales runway, with channel inventories largely rationalized in these regions.

The Beyond India Summer Products (BISP) portfolio, encompassing large space ventilated air cooling, tower fans, kitchen fans, and water heaters, played a significant role, contributing ₹558 crores (49%) to consolidated FY26 revenue and proving profitability-wise accretive. The newly launched water heater category in FY26, while not generating significant revenue in its launch year, is expected to see wider geographical spread and revenue growth in the coming year, leveraging unique product propositions like hair fall control geysers.

Despite a huge cost increase, particularly in raw materials like PVC, Symphony managed to maintain its consolidated gross margin at 46.4% in Q4 FY26, attributed to various strategies. Management indicated that while the June quarter would benefit from old inventory, the company plans to pass on the entire price increase for new production starting July 1st. The company also highlighted its strategy to offer a wide range of products at various price points to defend and grow market share against aggressive new entrants, noting that air coolers offer significant capital and electricity savings compared to ACs.