SYMPHONY - Symphony

📊 NSE: SYMPHONY 🏢 Domestic Appliances 📅 Last Updated: 12/14/2025 14:02

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 34.5% to INR 1,622.73 Cr in FY25. Standalone revenue grew 45.9% to INR 1,231.23 Cr. However, Q2 FY26 standalone revenue declined 40% YoY to INR 155 Cr due to channel inventory overhang. The Round-The-Year (RTY) portfolio recorded respectable growth and contributed 26% of H1 FY26 sales.

Geographic Revenue Split

The company operates across four continents. In Q2 FY26, Rest of World (ROW) revenue dropped sharply to INR 20 Cr from INR 50 Cr YoY. GSK China revenue grew 31% to INR 32 Cr in Q2 FY26.

Profitability Margins

Consolidated PAT for FY25 was INR 212.50 Cr (13.1% margin), up 43.5% from INR 148.13 Cr. Standalone PAT for Q2 FY26 was INR 28 Cr (18.3% margin), down 58% from INR 67 Cr (26.1% margin) in the previous year.

EBITDA Margin

Consolidated EBITDA (excluding other income/forex) for FY25 was INR 316 Cr (19.5% margin), up 82.7% YoY. Standalone EBITDA margin for Q2 FY26 declined to 17.3% from 27.8% YoY due to operating deleverage and product mix shifts.

Capital Expenditure

Core capital employed in the business is INR 16 Cr. The company maintains a negative or negligible working capital model. Total treasury surplus stood at INR 577 Cr as of September 30, 2025.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company is sitting on a surplus treasury of INR 577 Cr and is advancing towards debt-free status in subsidiaries like GSK China through IPR monetization of INR 45 Cr.

⚙️ Operational Drivers

Raw Materials

Plastic (PP/ABS) and Metal components represent the primary material costs. The company is actively shifting the market from metal air coolers to plastic air coolers to gain market share.

Import Sources

Not specifically disclosed, though global operations in China, Mexico, Brazil, and Australia suggest diversified sourcing.

Capacity Expansion

Current capacity not disclosed in units; however, the company expanded its SKU range from 3 to 7 in specific premium categories to reinforce agility.

Raw Material Costs

Gross margin softness in Q2 FY26 (48.2% vs 49.5%) reflects product mix shifts. Management notes that expanded metal-to-plastic conversion products may impact gross margins by 1-2% but remain absolute-value accretive.

Manufacturing Efficiency

ROCE on core capital employed is in the 'high 4 digit' percentage range due to the negative working capital model and low core capital requirement of INR 16 Cr.

📈 Strategic Growth

Expected Growth Rate

34%

Growth Strategy

Achieving growth through the 'Round-The-Year' ecosystem (LSV, fans, heaters), precision-led GTM strategies targeting semi-urban/rural markets, and omnichannel acceleration. The company is also monetizing IPR (INR 45 Cr) and divesting non-core subsidiaries.

Products & Services

Residential Air Coolers, Industrial/Commercial Coolers (LSV), Tower Fans, Kitchen Cooling Fans, and Water Heaters.

Brand Portfolio

Symphony, Silenzo, Arctic Circle.

New Products/Services

Super-premium launches like Silenzo and Arctic Circle; Kitchen coolers and Water Heaters are part of the RTY portfolio contributing 26% to H1 sales.

Market Expansion

Targeting semi-urban and rural markets in India and expanding export-led revenue streams to mitigate domestic seasonality.

Market Share & Ranking

Management claims market share has remained stable among top 5-7 players, despite a 'long tail' of over 100 smaller competitors.

Strategic Alliances

Subsidiaries include GSK (China), IMPCO (Mexico), Climate Holdings (Australia), and SCL (Brazil).

🌍 External Factors

Industry Trends

The industry is seeing a shift from unorganized metal coolers to organized plastic coolers. Consumer durables are evolving from luxuries to essential household commodities in India.

Competitive Landscape

Fragmented market with over 100 players; Symphony competes primarily with 5-7 organized brands.

Competitive Moat

Brand leadership, extensive dealer network, and a negative working capital model provide a sustainable cost and distribution advantage.

Macro Economic Sensitivity

Highly sensitive to GST rate changes; a recent GST rate cut helped rationalize trade channel inventory and improve trade partner cash flows.

Consumer Behavior

Shift toward premiumization (Silenzo) and year-round utility (Water Heaters/Fans) to reduce seasonal dependence.

Geopolitical Risks

US-China trade tariffs are monitored; Symphony is less impacted than Chinese competitors, providing a relative advantage in the US market.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (Listing Obligations and Disclosure Requirements) and Indian Accounting Standards (Ind AS). GST rate cuts are a significant regulatory driver for demand.