Thank you. On behalf of ICICI Securities, we welcome you all to Q4 and FY26 results 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.

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&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 and as is our custom, my colleague Nrupesh Shah, 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 Nrupeshbhai.

Hello, good morning to everybody. Thanks for joining Symphony's FY26 investor call and earnings presentation coupled with Q4 '26.

We'll take you through performance highlights. Second is Australia reset, US business, and related IPR consolidation.

Coming to financials, on a consol basis for the year FY26, top line stood at ₹1,131 crore, down by 28 percentage YoY leading to PBT of ₹149 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 ₹141 crore.

The capital employed in the core business on a consol 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 ₹1,182 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. 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 '26 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, that is March quarter, on a consolidated basis, revenue is ₹338 crore, 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, EBITDA 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, now we have short-formed it as a BISP portfolio or BISP products, which includes large space ventilated air cooling, tower fan, kitchen fan, water heater, exports from India, and sales in rest of the world, that is the product portfolio not dependent on Indian summer, that constituted ₹558 crore of sales out of about ₹1,100 crore plus, that is 49 percentage of FY26 revenue. In a way, through partly 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, 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 '26, 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 IMPCO 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 Technologies Australia is concerned, I will come to it later on.

Board of Directors has declared final dividend of ₹5 on a face value of ₹2, amounting to total annual payout of ₹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 ₹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 31st December, high base and to an extent extended billing to next quarter.

There was until 31st 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 4 to 6 weeks of decent summer sales. 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 above 25 percentage 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, US 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 ₹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 ring-fenced US business by making it a direct subsidiary of Symphony India, and Bonaire equity has been bought over by Symphony India at a valuation of ₹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. Company fully recognizes investors' concern about the performance of Australia, its capital efficiency, year after year the losses it has posted, 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 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 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 we also reduced the overheads to less than half, also integrated manufacturing facility converted into outsourced business model, also tie-based to enhance and expand marketing network.

In nutshell, despite all that, in last 2 years, Australia business has registered losses of ₹60 crore, including ₹35 crore 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. To 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.

At the cost of repetition, nothing more to impair or in other words nothing more to lose. At a consol level, where technically accounting assets are different, all put together, the impairment is ₹259 crore, including goodwill, 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 has 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 USA business directly in Symphony India amounting to ₹29 crore, and IPRs worth of ₹23 crore, totally ₹52 crore.

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 proceeds will be used to repay the working capital loan. Next.

Thereafter these are the financial statements more for your reference, standalone as well as consolidated on quarterly and annual basis. We can have Q&A.

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 part?

No, 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 preseason, 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 we expect a double-digit type growth, 10, 15, 20% growth? How should we look at it?

No, if you can give me for next 2, 3 weeks what's going to be the precise weather, then I can make some analysis and give that forecast.

Right. Sure, sir.

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 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 USA company, isn't it?

By doing this balance sheet reset.

Sir, given our stock price is quite low compared to 1, 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. Of course, at a right time, it can and will happen again with change in regulation.

Sure, sir. Thank you and all the best.

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?

What is the loan outstanding?

The size of US business in last 5 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 achieved.

In FY26, US business sales was about ₹60 crore and 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 2 or 3 companies, but ultimately that is the level of EBITDA margin from US business.

What sells most in USA and what are the products that you sell there? Is it the same thing that you do in India or is there something addition sold there?

It is air cooler, mainly air cooler.

Okay. 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 coolers essentially.

Okay. This tariff, because of your Mexico, the tariff will not be a 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, and of course from Mexico, there is no tariff. All in all, it's become a non-issue at the moment.

Okay. I don't 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. About IMPCO 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. For Climate Technologies Australia, top line was ₹182 crore and including profit of USA business, the PAT figure I have is negative ₹27 crore because there we had a substantial interest outflow also.

Okay. Now this CT Australia, 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 CT 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 winding it up, that is something which we are not at the moment considering. At the moment, we're 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.

Because you mentioned that the board has decided not a single penny more to be given to CT Australia. Just was wondering how can a loss-making company survive without any funding?

Exactly. Exactly.

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 subsidiary.

What is the fixed cost of Australian subsidiary now in a stripped-down version for a monthly fixed cost roughly?

As of now, it is how much? As of now, the CODB is about 500 5 to 600, 500 to 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, and that's a similar arrangement that we have say in Brazil, and so we are basically doing to replicate that kind of a model.

Thanks. Thank you very much.

You're welcome.

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.

Hi, thank you, sir, for the opportunity. I have one question, with multiple new entrants aggressively pricing the air coolers, what's the company's strategy to defend their market share and are you seeing any average selling price pressure at the trade level?

Yeah. What's the last part you said?

What kind of pressure at the trade level?

Price pressure.

Pricing pressure at the trade level. Symphony has always been considered a sort of a premium brand, a mass 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 at value for the value segment as well as for the premium segment.

Got it. Sir, another question is, the water heater category was launched in FY26, 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 where revenue wasn't anything to write home about, but in the coming year, 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.

[unclear] very limited market.

Yes, and last year until last year, it was launched in very limited markets, the market the geographical spread will also be wider this year. The the revenue will grow up.

The products were very well received, both from customers and channel partners wherever they were they were sold. 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.

In terms of technology, our product is the most advanced, but at the same time, we have launched value products product ranges as well. We have a whole suite of products from the Spa which is our flagship product to products at at value at value price points.

Understand, sir. Thank you so much.

You're welcome.

Good morning, sir. Am I audible?

You are.

Sir, thank you for the opportunity. Could you also provide the PAT numbers for the subsidiaries?

PAT number for the subsidiaries.

Subsidiaries.

For Climate Technologies Australia, at PAT level, it was negative ₹27 crore before exceptional item. For IMPCO 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. Symphony Brazil, it is negative ₹3 crore.

Thank you for that, sir. What do you expect the growth by looking forward in these subsidiaries?

What will you guide for? How should we look at them?

No, very clearly with this Australia reset, balance sheet reset, subsidiaries will incrementally contribute to the profitability. As 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 IMPCO Mexico since years and years.

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 metrics, 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.

Sir. Thank you for that.

That's it from my side.

Thanks for the opportunity again. Just two questions on the Indian business.

When you said overall business was around ₹1,100 crore and ₹558 crore coming from BISP, balance ₹542, I presume, would be from the Indian operations alone. When I look at how is the EBITDA level playing in 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 3, 4 years, at EBITDA level, it is in a decent high single-digit margin percentage.

Okay. You see that growing through operating leverage going forward or how exactly will BISP EBITDA margin cross and come closer to your normal EBITDA margins?

Operating leverage.

No, for sure, it has a potential to be in line with our air cooler business.

With operating leverage.

With operating leverage. By the way, as far as our subsidiaries are concerned, particularly IMPCO and even US business as well as China, at EBITDA level, if we normalize, they are almost in line with Symphony India business.

Okay. What is the EBITDA for the air cooler business in India?

Out of the ₹542 crore, what would be the EBITDA percentage?

I don't have that handy right now, but

Ballpark.

we have mentioned 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 consol 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 link with operating leverage and that has taken a hit.

On a consol level, it is 15.5% and on a standalone level, it is 17% which year before was about 27%.

Yeah. That I have.

Just wanted to check out 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?

In a way, there is non-comparable product, non-comparable segment. Actually, the cooling capacity of a particular category of AC and air cooler should be compared.

Still, depending upon the brand, the capital cost difference will be almost 1/4, 1/3. An air cooler will be costing 1/4 or 1/3.

When it comes to the electricity consumption, clearly the saving is more than 90%. In a way, payback period is 1 to 2 years from electricity saving.

Okay. Basically, you're saying if 100 is the AC price of the lower-end branded ACs, your price would be around 75?

Ours will be about 30 to 40.

Oh, okay.

Lower by that percentage.

Yeah. Thank you very much.

Hello, am I audible?

You are.

Thank you so much for the opportunity. I just wanted to know the round-the-year share for Q4.

You have mentioned it for the whole year. If you could just help with the Q4 percentage also.

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 consol level is high single-digit percentage.

This is despite we are intentionally building with a lot of one-time cost, but they are totally booked to P&L, including trade channel related cost, advertisement, sales promotion cost, and variety of other launching costs. 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 ventilated cooling, EBITDA margin percentage now stands even higher than residential air cooler category.

Sure. Thank you so much.

Also, the other expenses are significantly higher versus the historical levels. Any factor which has led to this high increase?

Is it because of the deleverage or how should we look at it going forward? Plus 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. 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. Sure.

Thank you so much.

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.