1. At a Glance
Symphony Ltd is that rare Indian consumer company that once made investors feel cool—literally and financially. Fast forward to today, and the stock price is sweating harder than a desert cooler in May.
Market cap sits at ₹5,940 Cr, current price ₹865, down 34% YoY and 23% in the last 6 months. ROCE is still a jaw-dropping 36.8%, ROE 32.4%, debt is basically non-existent (₹5 Cr, D/E 0.01), and dividend yield is a respectable 1.52%. On paper, this looks like a poster boy of capital efficiency.
But Q3 FY26 numbers landed with the grace of a power cut in peak summer. Quarterly revenue fell 26% YoY, PAT down 23.6%, and export contribution collapsed to single digits. The market isn’t angry—it’s disappointed. And disappointment is worse.
Symphony still controls ~50% of the organised air cooler market, sells in 60+ countries, and has 27.5 million coolers installed globally. Yet, recent quarters show that even kings of summer can catch a cold. Curious why a near-monopoly with crazy margins is struggling? Good. Keep reading.
2. Introduction – From Monopoly Swagger to Seasonal Sobriety
Symphony used to be the textbook example professors love: asset-light, brand-led, high ROCE, negative working capital. The kind of company where you nodded seriously and said, “This deserves a premium multiple.”
And for years, it did.
But FY25–FY26 reminded everyone of one brutal truth: seasonal businesses don’t care about your ROCE charts. When summers underperform, inventories pile up, exports misfire, and fixed costs don’t magically evaporate.
Symphony’s story today is not about survival—it’s about expectation reset. The company is profitable, cash-rich, and dividend-paying. But growth
has stalled, exports have shrunk from 34% of revenue in FY23 to just 8% in FY24, and Q3 FY26 numbers confirmed the slowdown wasn’t a one-quarter accident.
So the big question:
Is this a temporary weather issue—or has the climate permanently changed for Symphony?
3. Business Model – WTF Do They Even Do?
At its core, Symphony does one thing extremely well: evaporative air cooling.
- 97% of revenue comes from air coolers
- Residential, commercial, and industrial (LSV – Large Space Ventilation)
- Sells under global brands like Master Cool, Bonaire, Celair, Arctic Circle
The model is simple but smart:
- Minimal manufacturing footprint
- Heavy outsourcing + vendor ecosystem
- Strong distribution (30,000+ dealers, 1,000+ distributors)
- Aggressive branding (₹59 Cr spent in FY24, ROI of 13.4x)
They don’t sell luxury. They sell value cooling—cheap to run, eco-friendly, and scalable across emerging markets.
But here’s the catch:
Coolers are seasonal, discretionary, and weather-dependent. No summer, no party. And global markets added their own drama—currency issues, channel disruptions, and failed divestment attempts.
Symphony tried to de-seasonalise with BLDC coolers, fans, kitchen ventilation, even water heaters. Sensible strategy. Execution? Still warming up.
