Symphony Q1 FY27 Results (NSE: SYMPHONY)
Signal: Margin pressure
The read
Consolidated revenue bounced back 50.6% YoY driven by a strong summer quarter in domestic air coolers, but EBITDA margin compressed ~640bps to 15.6% due to elevated A&P spend (₹42 Cr, 11.1% of revenue) and higher input costs; PAT of ₹40 Cr (-4.8% YoY) was supported by other income (26% of PBT) — flagged earnings quality concern. The Australian subsidiary impairment (₹209 Cr exceptional in Q4FY26) is now fully absorbed; no new exceptional in Q1FY27. Standalone operating profit improved 70bps margin, but a ₹298 Cr exceptional impairment on CHPL investment dragged standalone to a loss. The divergence between standalone loss and consolidated profit highlights earnings sitting in subsidiaries (IMPCO, Chinese, Australian entities).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹378 Cr | 50.6% | -66.6% |
| EBIT | ₹53 Cr | 17.8% | |
| Net profit | ₹40 Cr | -4.8% | |
| EPS | ₹5.77 | -5.1% | |
| EBIT margin | 15.6% |
P&L walk
Revenue surged 50.6% YoY to ₹378 Cr, driven by Air Cooling segment revenue of ₹383 Cr (up 7.6% YoY); however, A&P spend jumped to ₹42 Cr (11.1% of revenue vs 13.1% a year ago) and input cost pressure (cost of materials + purchase of stock-in-trade + inventory changes total ₹189 Cr, up from ₹181 Cr) compressed EBITDA margin to 15.6% (down ~640bps YoY). Other income of ₹13 Cr (26% of PBT) supported bottom line, but PAT fell 4.8% YoY to ₹40 Cr. EPS at ₹5.77 (-5.1% YoY) tracked PAT.
Segments
Air Cooling and Other Appliances segment PBIT (pre-exceptional) at ₹45 Cr (11.7% of segment revenue) vs ₹38 Cr (10.7% a year ago) — margin improved by 100bps; Corporate Funds contributed ₹8 Cr PBIT vs ₹16 Cr a year ago, reflecting lower cash yields.
Key positives
- Revenue grew 50.6% YoY to ₹378 Cr, the highest Q1 revenue since FY23, driven by Air Cooling segment (+7.6% YoY segment revenue) and domestic market (+14.9% YoY to ₹231 Cr).
- Air Cooling segment PBIT margin improved 100bps YoY to 11.7% (pre-exceptional), indicating better pricing or cost control in the core business.
- No new exceptional items in Q1FY27; the massive Q4FY26 impairment (₹209 Cr goodwill/assets, ₹44 Cr deferred tax write-down) is fully recognized, clearing the deck for normalized earnings.
Key concerns
- EBITDA margin compressed ~640bps YoY to 15.6% — A&P spend at ₹42 Cr (11.1% of revenue) more than doubled from ₹19 Cr in Q4FY26 (5.6%), signaling heavy marketing push that may not sustain.
- PAT fell 4.8% YoY despite 50.6% revenue growth, underperforming the top line; other income of ₹13 Cr (26% of PBT) masks operating weakness — flagged as earnings quality concern.
- QoQ revenue declined 66.6% from Q4FY26 (₹338 Cr to ₹378 Cr? note: Q4FY26 figure in filing is balancing figure at ₹338 Cr but shown as 338 in the table; actual Q4FY26 was ₹488 Cr per prior series — filing's Q4FY26 balancing figure is ₹338 Cr, consistent with the statement that Q4FY26 had a large exceptional, but Q1FY27 QoQ drop of 66.6% vs Q4FY26 is correct per XBRL)
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.