At a Glance
Symphony Ltd, the self-proclaimed Mozart of air coolers, just played a tragic tune this quarter. Q1 FY26 revenue crashed 39% YoY to ₹251 Cr, while net profit halved to ₹42 Cr (↓57%). Operating margin melted to 10% from the previous quarter’s 26%—clearly, the coolers weren’t the only things losing heat. Stock is down to ₹1,091, with a P/E of 36.7 (based on TTM), but the annualized Q1 EPS paints a much uglier number. Amid the chaos, they still declared an interim dividend of ₹1/share—because nothing says “don’t panic” like handing out pocket change.
Introduction
Symphony, the world’s largest air cooler manufacturer, is supposed to dominate summers like ice cream at a kids’ party. Instead, Q1 FY26 results look like a fan spinning in slow motion. With 97% of revenue from coolers, the company is basically hostage to summer demand—and when summers fail to scorch or distribution falters, earnings melt faster than butter on a hot pan.
To make matters dramatic, management is busy talking about strategic divestments and IP transfers worth ₹44 Cr. Great for long-term investors, but Q1 numbers scream “Houston, we have a problem.” The stock has fallen 40% from its peak, and shareholders are left wondering: is Symphony cooling down permanently or just catching its breath?
Business Model (WTF Do They Even Do?)
Symphony’s business is as simple as its product—make coolers, sell coolers, and hope for a heatwave. The company dominates in the residential segment and also supplies commercial and industrial cooling systems worldwide.
Global reach? Yes. Patents? 55+. Trademarks? 417+. Designs? 97+. But despite this intellectual property fortress, 97% of revenue still comes from air coolers—a highly seasonal, brutally competitive market. Their international play (Australia, Mexico, China, etc.) adds some diversification, but currency volatility and sluggish demand have kept that segment from truly rescuing the numbers.
In short: great brand, strong IP, but business seasonality is the real villain.
Financials Overview
The numbers this quarter hit harder than a desert storm:
- Revenue (Q1 FY26): ₹251 Cr (↓39% YoY)
- EBITDA: ₹26 Cr (margin 10%)
- Net Profit: ₹42 Cr (↓57% YoY)
- EPS (Q1): ₹6.09
TTM EPS: ₹24.22
Fresh P/E Calculation: Current Price ₹1,091 / Annualized EPS (₹6.09×4=₹24.4) ≈ P/E ~44.7
Color commentary? Margins collapsed, profits halved, and sales fell off a cliff. This isn’t a cooling business; it’s an ice age.
Valuation
Breakdown time:
- P/E Method:
- Peer median P/E ~53 (Voltas, Blue Star)
- Applying 30–35 (due to weak quarter) on FY26E EPS ₹25 → Fair Value: ₹750–₹875
- EV/EBITDA Method:
- TTM EBITDA ₹218 Cr, EV/EBITDA peer ~15x → EV ₹3,270 Cr → Fair Value ~₹800
- DCF (Quick & Dirty):
- Assuming 8% growth, 12% discount, terminal 2% → Fair Value ~₹850
Fair Value Range: ₹750–₹875 (stock at ₹1,091 is still above fair value).
What’s Cooking – News, Triggers, Drama
- Strategic Divestment & IP Transfer: ₹44 Cr deal in progress.
- Dividend: ₹1/share—symbolic more than significant.
- Demand Outlook: Linked to weather and consumer spending.
- Risks: High dependence on one product, poor quarterly performance, weak summer.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 1,322 |
| Liabilities | 419 |
| Net Worth | 761 |
| Borrowings | 142 |
Auditor Remark: Balance sheet is light and healthy. Borrowings tiny, but growth also tiny.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | 125 | 162 | 259 |
| Investing CF | -12 | 193 | -41 |
| Financing CF | -124 | -367 | -224 |
Remarks: Cash ops strong, investing volatile (due to IP and acquisitions), financing cash out because dividends flow even when profits don’t.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 32.4% |
| ROCE | 36.8% |
| P/E | 44.7 |
| PAT Margin | 18% |
| D/E | 0.19 |
Remarks: ROE and ROCE scream sexy, but P/E is stressy, especially with collapsing revenue.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,188 | 1,156 | 1,576 |
| EBITDA | 140 | 171 | 312 |
| PAT | 116 | 148 | 212 |
Remarks: FY25 was strong, but Q1 FY26 wrecked the momentum. One bad summer, and profits melted.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Voltas | 15,413 | 823 | 53.1 |
| Blue Star | 11,968 | 585 | 60.2 |
| Amber Enterp. | 11,021 | 275 | 97.8 |
| Symphony | 1,189 | 205 | 44.7 |
Remarks: Symphony trades cheaper than peers but for a reason—it’s smaller, seasonal, and just had a nightmare quarter.
Miscellaneous – Shareholding, Promoters
- Promoters: 73.42% – rock solid
- FIIs: 6.47% – slight increase
- DIIs: 8.60% – stable
- Public: 11.49% – holding tight
Promoters continue to hold majority, showing confidence (or stubbornness). No hostile drama here.
EduInvesting Verdict™
Symphony is a brand powerhouse in air cooling, but its dependence on one product and seasonal volatility makes it vulnerable. Q1 FY26 was a disaster, with revenue and profit plunging. Long-term, IP portfolio and international presence offer stability, but near-term risks are high.
Past performance? Decent margins, consistent dividends, but growth has been sluggish for years.
Upcoming tailwinds? New products, IP monetization, and international expansion.
Headwinds? Seasonal demand, competition, and valuation pressure.
SWOT Analysis
- Strengths: Market leader, strong IP, high ROE.
- Weaknesses: Single-product dependence, weak growth.
- Opportunities: Exports, new segments, digital cooling solutions.
- Threats: Bad summers, low-cost Chinese competition, high P/E.
Final Word: Great brand, weak quarter, risky valuation. For now, Symphony investors should keep their cool—because this stock might need a few hot summers to heat up again.
Written by EduInvesting Team | 01 Aug 2025SEO Tags: Symphony Ltd, Air Coolers, Consumer Durables, Q1 FY26 Results
