SYMPHONYNSEQ2FY26November 11, 2025

Symphony Limited

5,577words

91turns

9analyst exchanges

5executives

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Management on call

Achal Bakeri

CHAIRMAN AND MANAGING

Nrupesh Shah

MANAGING DIRECTOR,

Amit Kumar

GROUP CHIEF EXECUTIVE

Rajesh Mishra

CHIEF EXECUTIVE OFFICER,

Manoj Gori

EQUIRUS SECURITIES PRIVATE LIMITED

Key numbers — 40 extracted

rs,

e either counter seasonal or year-round products such as our industrial coolers or our water heaters, our tower fans, our kitchen coolers, exports from India. So, we are working on v

₹155 crore

upesh Shah: Thank you, Achal bhai, and good afternoon. So, for the quarter, the top line has been ₹155 crores on a stand-alone basis vis-a-vis ₹259 crores for September '24, while EBITDA stood at ₹27 cror

₹259 crore

fternoon. So, for the quarter, the top line has been ₹155 crores on a stand-alone basis vis-a-vis ₹259 crores for September '24, while EBITDA stood at ₹27 crores versus ₹72 crores and profit after tax stood

₹27 crore

₹155 crores on a stand-alone basis vis-a-vis ₹259 crores for September '24, while EBITDA stood at ₹27 crores versus ₹72 crores and profit after tax stood at ₹28 crores versus ₹67 crores. As Achal bhai ment

₹72 crore

tand-alone basis vis-a-vis ₹259 crores for September '24, while EBITDA stood at ₹27 crores versus ₹72 crores and profit after tax stood at ₹28 crores versus ₹67 crores. As Achal bhai mentioned, this is spi

₹28 crore

r September '24, while EBITDA stood at ₹27 crores versus ₹72 crores and profit after tax stood at ₹28 crores versus ₹67 crores. As Achal bhai mentioned, this is spillover of subdued summer or bad summer of

₹67 crore

hile EBITDA stood at ₹27 crores versus ₹72 crores and profit after tax stood at ₹28 crores versus ₹67 crores. As Achal bhai mentioned, this is spillover of subdued summer or bad summer of '25 and on top of

21%

and Exports from India. In all, to an extent, it has saved the day as they have contributed about 21% of the top line for the quarter and ~ 26% of the top line in trailing 12 months. And hence, that

26%

nt, it has saved the day as they have contributed about 21% of the top line for the quarter and ~ 26% of the top line in trailing 12 months. And hence, that has led to first 6 months top line, third

₹50 crore

g to the update about the pathway recovery, which we had completely provided for by Dec’24, about ₹50 crores. So earlier, we received ₹4.5 crores and in October, post 30th September, we have recovered addi

₹4.5 crore

covery, which we had completely provided for by Dec’24, about ₹50 crores. So earlier, we received ₹4.5 crores and in October, post 30th September, we have recovered additional ₹4 crores. And all legal steps

₹4 crore

arlier, we received ₹4.5 crores and in October, post 30th September, we have recovered additional ₹4 crores. And all legal steps are being pursued aggressively, in addition to creation of charge in our fa

Guidance — 19 items

Achal Bakeri

opening

“Not that it matters as far as all of you are concerned, what you really expect from us is to deliver growth every quarter, quarter-on-quarter and Y-o-Y.”

Achal Bakeri

opening

“We are here to make sure that we'll be trying our best to deliver better performance going forward.”

Achal Bakeri

opening

“So, with that, all I would like to say is that we expect good times in the future, while accepting that what we have gone through has been disappointing to put it mildly.”

Nrupesh Shah

opening

“And in that respect, in the past, we have seen the quarters like this, and we have always rebounded much stronger, much better, and that's what we expect.”

Nrupesh Shah

opening

“While coming to round the year products, we expect that there is a huge potential and growth momentum.”

Shraddha Kapadia

“And by how or by when do we expect the full channel to get normalized?”

Shraddha Kapadia

“So, when do we expect this to normalize?”

Amit Kumar

“At the same time, post especially the festive season sales that have happened, the channel we anticipate is getting better.”

Amit Kumar

“And we see that the buildup to the season going forward should start smoothening the overall channel sentiment.”

Keshav Lahoti

“Is it a fair understanding you mean by the time the season comes, so you mean there will be higher channel inventory maybe possibly by FY '26 end.”

Risks & concerns — 12 flagged

Also, are the distributors very cautious in placing the orders?

— Shraddha Kapadia

So, will there be margin pressure over there?

— Siddhant

And there's always a point where there is channel pressure on pricing using one way or the other.

— Amit Kumar

So possibly the 3/4th portfolio definitely have to decline by more than 50% to derive at such a sharp decline.

— Keshav Lahoti

So of course, there is a sharp decline, but it is lower than 50% during the quarter.

— Nrupesh Shah

Achal Bakeri: And it's more or less in line with the decline of the overall industry, the air cooler industry.

— Nrupesh Shah

But our decline is more or less in line with our peers and the overall industry.

— Nrupesh Shah

So, is it possible to attribute like how much would this decline be because of channel inventory and how much would be because of weak demand?

— Keshav Lahoti

So what I'm trying to understand, whatever the decline the company has reported 40% - 50%, whether the unorganized have also declined by a similar number or whether their decline would be lower than this?

— Keshav Lahoti

But just to repeat it, as there was a hangover of subdued summer and hence, carryforward of inventory, as on 30th September '25, the channel inventory was, by and large, in line with something here and there as on 30th September '24 because whatever was the carryforward of inventory to that extent, sales decline happened in September quarter.

— Nrupesh Shah

And you are referring to working capital pressure.

— Nrupesh Shah

So, October also witnessed double-digit decline?

— Mahesh

Q&A — 9 exchanges

So actually, this is mainly with regards to the inventory. So, what is the current inventory holding in the GT and the B2B channel versus the normalized levels? And by how or by when do we expect the full channel to get normalized?

Achal Bakeri

So, while the inventory is a little higher than the previous year, but we have to understand that, that is despite a much lower sale from us. So, there has been a decompression in sales at the GT level, which is causing sort of a negative sentiment amongst the players for the moment until the season picks up. And what was your second question? So, when do we expect this to normalize? So that would get normalized, as I said in my opening remarks, as we get closer into the season. Okay. Perfect. Yes. That is normal phenomena every year. Otherwise also, during the off-season, whatever is the offt

Sir, as you highlighted, channel inventory is slightly higher than normal. So, can you please quantify like normally how many days it is now in terms of Q3 sales? And just a follow-up on this. Is it a fair understanding you mean by the time the season comes, so you mean there will be higher channel inventory maybe possibly by FY '26 end. So, your Q3 and Q4 performance still would be impacted by higher channel inventory?

Amit Kumar

So Keshav, let's say, may be if I look at last 2 years, typically, the first quarter billing that we do is, give or take, about 20% to 25% of the full year number, which said differently, let's say, end of the Q2, the channel carries about, let's say, anywhere between 25% to 30% of the season sales as part of the inventory. At this point in time, it's slightly higher than that. And typically, starting January to February, this inventory level starts going down because the materials start moving both at the retailer level as well as to some extent to the consumer level. Also, January - February

Sir, a couple of questions. One, when I look at the product mix, obviously, we did launch some of the mass segment products. So probably, is it for the time being and probably in the coming quarters or for the season of next year, we should relatively see a better product mix and probably the product mix should return back to those normalized levels. And accordingly, the gross margins also should come back to normal levels. Is that the right assumption? Or any insight there?

Amit Kumar

So, Manoj, that's an interesting question. And if I were to just delve into this slightly differently, the expanded product portfolio that we are talking about is basically from the perspective of capturing a larger share of the metal air cooler market that is slowly converting into plastics. So, we are actually trying to gain a chunk of that market. So, from an overall top line perspective, this is clearly accretive. If this portfolio becomes a significant share of our total numbers, then at the GM level, maybe there is 1% or 2% point kind of impact. But at the absolute value level, this is g

I just had one question. What is the channel saying about customer feedback on the AC GST cut because now the delta between a cooler and AC has come down, right? So, will there be margin pressure over there?

Amit Kumar

So that's an interesting question, Siddhant. And there's always a point where there is channel pressure on pricing using one way or the other. So that's something we have to live with and we handle. But I wouldn't say that's a material impact in our case. Those points come and they are part of the discussions we handle on a day-to-day basis in any case. And yes, the overall pricing gap is still pretty wide between, let's say, an average air cooler that we sell and an average AC that is there in the market.

Just a follow-up. As I can see your total top line has declined by more than 40% if 1/4th of your portfolio has grown. So possibly the 3/4th portfolio definitely have to decline by more than 50% to derive at such a sharp decline. So, am I seeing in the right way?

Nrupesh Shah

So of course, there is a sharp decline, but it is lower than 50% during the quarter. And if we talk about first 6 months, it is even lower than that. But there is a sharp decline. Achal Bakeri: And it's more or less in line with the decline of the overall industry, the air cooler industry. Of course, the air conditioner industry and the fan industries have declined, but not as sharply as the air cooler industry. But our decline is more or less in line with our peers and the overall industry. Nrupesh Shah: And in the past, when there was subdued summer like this, I think this has always happene

Just one understanding. Can you quantify what is the inventory in rupee terms that we are holding? And how was it compared to last year same time?

Nrupesh Shah

We haven't got much inventory because our business model is like this. So, if you are referring that at a company level, inventory is by and large in line with previous year. But in the channel? No, channel, we already answered in a different way. But just to repeat it, as there was a hangover of subdued summer and hence, carryforward of inventory, as on 30th September '25, the channel inventory was, by and large, in line with something here and there as on 30th September '24 because whatever was the carryforward of inventory to that extent, sales decline happened in September quarter. Okay. T

Yes. So last year, when we had a strong summer, we missed out on some sales because it was one-of-a-kind summer. So, this year and going forward, are we better prepared to ramp up production in case such a season comes up? So, what have we done for that?

Amit Kumar

So absolutely, Siddhant, that's something that we have very clearly worked on and prepared for. So, at the back end, building that kind of scalability and operational agility is something that we are fully geared for.

So, what is the current demand scenario, is there any improvement in demand?

Amit Kumar

See, Mahesh, for the core category that we operate in at this point in time, there's hardly much consumer demand. Most of this is basically advanced planning jointly with our channel partners and placing materials as primary sales from our side. But the consumer demand will only be clearer or will only start sort of coming into the market mostly from January, February out there. However, if we can consider until GST rate cut, even at a channel level, across channel, across consumer durables, there was a high inventory because of GST cut and good festive demand, by and large, trade channel has

Thank you very much, everybody, for your participation and your interest in our company, and we look forward to having you back with us in 3 months. Thank you. Bye-bye. Have a pleasant afternoon.

Nrupesh Shah

And also thanks to Equirus for hosting this conference call. Thank you.

Speaking time

Nrupesh Shah

Achal Bakeri

Keshav Lahoti

Amit Kumar

Moderator

Manoj Gori

Shraddha Kapadia

Vinay Nadkarni

Mahesh

Siddhant

Opening remarks

Manoj Gori

Yes. Thank you, Rutuja. Hello. Good afternoon, everyone. Welcome to 2Q and H1 of FY '26 earnings call of Symphony Limited. From management side today, we have with us Mr. Achal Bakeri, Chairman and Managing Director; Mr. Nrupesh Shah, Managing Director, Corporate Affairs; Mr. Amit Kumar, Executive Director and Group CEO; and Mr. Rajesh Mishra, CEO, International Business. I would now request Mr. Achal sir to start with the opening remarks. Over to you, sir.

Achal Bakeri

Thank you very much, Manoj, and a warm welcome to all the participants to this call of Symphony today. Thank you very much for being here. To begin with, let me be upfront that our performance of last quarter has been very disappointing, very much for us and as I'm sure as it is for you. But to put things into perspective and sort of set the context, for the first 6 months i.e. H1FY26, this was still the third highest performance that the company has delivered. And for the previous quarter, which ended in June ‘25, it was the second highest in the company's history. Not that it matters as far as all of you are concerned, what you really expect from us is to deliver growth every quarter, quarter-on-quarter and Y-o-Y. So that's our job, and that's what we are supposed to do. But being in a seasonal business, the nature of the beast is such that you are dependent on factors beyond your control. And while we had a phenomenal summer in 2024, the summer was phenomenally bad in 2025. As I'm s

Nrupesh Shah

Thank you, Achal bhai, and good afternoon. So, for the quarter, the top line has been ₹155 crores on a stand-alone basis vis-a-vis ₹259 crores for September '24, while EBITDA stood at ₹27 crores versus ₹72 crores and profit after tax stood at ₹28 crores versus ₹67 crores. As Achal bhai mentioned, this is spillover of subdued summer or bad summer of '25 and on top of it, high base of last year. And it is on account of Round The Year (RTY) product portfolio, which we have very carefully developed and nurtured over a period of time, which includes Large Space Venti cooling, Tower Fan, Kitchen Cooling Fan, Water Heaters and Exports from India. In all, to an extent, it has saved the day as they have contributed about 21% of the top line for the quarter and ~ 26% of the top line in trailing 12 months. And hence, that has led to first 6 months top line, third highest, even though Y-o-Y, there is a major degrowth. So, this is based on the compilation of the data we have done for last 11 years,

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