Symphony Ltd Management Discussions

Global economy

The global economy remained broadly stable in 2025, growing around 3.4%, despite trade-policy uncertainty during the year. Although some measures were partially unwound through subsequent trade deals, effective tariff rates remained well above pre-2025 levels and heightened trade policy uncertainty.

Advanced economies witnessed marginal growth from 1.8% in 2024 to 1.9% in 2025, while emerging and developing economies continued to grow faster than advanced economies.

Global inflation moderated during 2025 but remained above pre-pandemic comfort levels in several economies.

Performance of the major economies, 2025

Outlook

Given the challenge of forming stable, real-time assumptions for projections, the IMF World Economic Outlook report adopted a ‘reference forecast instead of a conventional baseline, assuming the war remains contained in duration, intensity, and reach, with disruptions easing by mid-2026, in line with commodity futures as of March 10, 2026.

Under this reference view, global growth is projected at 3.1% in 2026 and 3.2% in 2027. Global inflation is expected to rise modestly to around 4.4% in 2026 before easing to approximately 3.7% in 2027.

Indian economy

India remained one of the fastest-growing major economies in FY 2025-26. As per MoSPIs provisional estimates, real GDP grew 7.7% in FY 2025-26 compared with 7.1% in FY 2024-25. Real GDP at constant prices was estimated at Rs 323.12 lakh Crores, compared with Rs 299.89 lakh Crores in the previous year. Nominal GDP grew 8.9% during the year.

Growth was broad-based. Real GVA grew 7.9%, supported by strong momentum in the secondary and tertiary sectors, which grew 8.8% and 9.3%, respectively, at constant prices. Manufacturing, trade, transport, communication, financial, real estate and professional services were among the sectors recording strong growth during the year.

On the expenditure side, both private consumption and investment remained healthy, with MoSPI indicating that Private Final Consumption Expenditure and Gross Fixed Capital Formation grew by more than 7.5% during FY 2025-26. This reflects a balanced demand environment supported by household consumption, investment activity and resilient domestic economic momentum.

Indias macroeconomic environment was also supported by benign inflation and a healthier banking system. The Reserve Bank of India maintained the policy repo rate at 5.25% in June 2026 and retained a neutral stance, while the banking sector continued to report strong asset quality and adequate capital buffers.

For Symphony, Indias macroeconomic context remains constructive. Rising incomes, expanding urbanisation, growing formalisation, increasing digital adoption and improving distribution reach continue to support long-term consumption growth. At the same time, climate variability and rising thermal-comfort needs reinforce the structural relevance of affordable and energy-efficient cooling solutions.

Growth of the Indian economy

Note: FY24 figure restated under new base year 2022-23. (Source: MoSPI)

Inflation, policy and currency dynamics

Inflation remained broadly contained during FY 2025-26, aided by favourable food price dynamics and base effects. This benign inflation trajectory supported policy-rate easing during the period, with the repo rate at 5.25% by June 2026.

Despite this macroeconomic stability, the Indian rupee experienced elevated volatility, depreciating by 9.9% during FY 2025-26 — its steepest decline in over a decade — to close near Rs 94.8 per US dollar. The movement reflected global capital flow adjustments, a strong US dollar environment, elevated crude prices, and ongoing geopolitical uncertainties.

Capital flows and market behaviour

Indian equity markets witnessed volatility during FY 2025-26 amid global risk aversion, currency weakness and shifting foreign investor allocations. Foreign institutional investors withdrew more than Rs 1.6 lakh Crores from Indian equities during the year, while domestic institutional investors provided a strong counterbalance with inflows of approximately Rs 8.5 lakh Crores. This divergence highlights the growing depth of Indias domestic capital pool and the increasing role of local institutional investors in stabilising market behaviour during periods of global volatility.

Fiscal strength and formalisation

Indias fiscal position continued to strengthen:

- Net direct tax collections remained robust in FY 2025-26, with provisional collections for the full year estimated at approximately Rs 22.5·22.7 lakh Crores. Corporate and non-corporate contributions were nearly balanced.

This reflects sustained formalisation, improved compliance, and the success of digitisation-led reforms.

Banking sector: A pillar of stability

Indias banking sector remained a source of macroeconomic stability. Asset quality improved further, with gross non-performing assets reported at multi-decadal lows, while profitability and capital adequacy remained healthy. Stronger bank Balance Sheets and improving credit conditions are expected to support consumption, MSME activity, housing and investment-led growth over the medium term.

Indias growth story is increasingly services-led

Indias growth remained broad-based during FY 2025-26, with services continuing to represent the largest contributor to economic activity. As per MoSPIs provisional estimates, real GVA grew 7.9% during the year, supported by strong momentum in both the secondary and tertiary sectors.

The tertiary sector grew 9.3% at constant prices in FY 2025-26, compared with 7.9% in FY 2024-25. Within services, Trade, Hotels, Transport, Communication and Services related to Broadcasting and Storage grew 11.0%, while Financial, Real Estate, IT, Professional Services and Ownership of Dwelling grew 10.4%. Public Administration, Defence and Other Services grew 5.0% during the year.

Services continued to account for the largest share of Indias nominal GVA. In FY 2025-26, the services-linked components of GVA comprised Financial, Real Estate, IT, Professional Services and Ownership of Dwelling at 27%, Trade, Hotels, Transport, Communication and Services related to Broadcasting and Storage at 14%, and Public Administration, Defence and Other Services at 13%.

At the same time, Indias growth was not services-led alone. The secondary sector grew 8.8% at constant prices in FY 2025-26, supported by 10.7% growth in manufacturing and 7.4% growth in construction. This combination of services momentum and manufacturing expansion reflects a more balanced growth profile, strengthening income creation, employment opportunities and consumption potential.

For Symphony, this matters because broad-based economic growth supports long-term household consumption, organised retail expansion, institutional demand and discretionary appliance ownership. Rising services activity, urban employment, formalisation and expanding commercial infrastructure are expected to reinforce demand for affordable, energy-efficient cooling and comfort solutions across residential, commercial and institutional segments.

Consumption and investment balance

Indias FY 2025-26 growth was supported by a healthy balance between private consumption and investment. As per MoSPIs provisional estimates, Private Final Consumption Expenditure (PFCE) grew more than 7.5% at constant prices during the year, compared with 5.8% in FY 2024-25. Gross Fixed Capital Formation (GFCF) grew 8.2%, compared with 6.4% in the previous year.

PFCE remained the largest component of GDP, accounting for 55.7% of GDP at constant prices in FY 2025-26. GFCF accounted for 32.3%, reflecting sustained investment activity and continued capacity creation in the economy.

Growth catalysts

Policy-led consumption boost: The Union Budget FY27s tax relief measures — particularly income tax exemptions up to Rs 12 lakh — are expected to stimulate discretionary spending and reinforce consumption-led growth.

Anticipatory Pay Commission impact: The 8th Pay Commission, though expected to be implemented from FY28, is already shaping consumer sentiment, creating a forward consumption impulse.

Monetary stability: The Reserve Bank of Indias calibrated stance, with the repo rate at 5.25%, balances inflation risks with growth support, ensuring macroeconomic stability.

Credit expansion: Improved banking health and liquidity conditions are expected to sustain strong credit growth across MSMEs, housing, and retail segments.

Fiscal prudence with growth focus: The Union Budget maintains fiscal discipline while prioritising infrastructure, MSME support, skilling, and innovation — key levers for long-term productivity.

Outlook

The year under review underscores a defining divergence: a world grappling with uncertainty, and India navigating it with confidence with growth accelerating to 7.7%.

In a global environment marked by fragmentation and caution, India stands out as a rare convergence of stability, scale, and structural opportunity. The World Bank has revised its FY27 growth estimate upward to approximately 6.6%, considering headwinds from the Middle East conflict reflecting resilient domestic momentum even as growth moderates from the previous year. India is expected to retain its position as the fastest-growing major economy.

Growth will be shaped by a combination of:

- Strong domestic demand

- Resilient private consumption supported by low inflation and GST rationalisation

- Stable export performance with improved access to key markets

- Policy support and continued economic reforms

- Demographic advantage

While risks persist, particularly from elevated energy prices, subsidy pressures on government spending, uncertainty in global demand, ongoing geopolitical conflicts, and war-related disruptions, Indias macroeconomic fundamentals remain strong.

Over the medium term, sustained consumption, gradual investment recovery, and expanding global trade linkages are expected to reinforce Indias position as a key driver of global economic growth.

(Source: Economic Survey 2025-26, RBI, Ministry of Finance, MoSPI, Press Information Bureau, IMF)

Indian air cooler market overview

The Indian air cooler market remains a large, underpenetrated and structurally relevant consumer category. At the primary level, the residential air cooler market is estimated at approximately Rs 5,000 Crores and is expected to double over the next five to seven years, supported by rising temperatures, improving household incomes, low category penetration and increasing demand for affordable cooling.

The categorys relevance lies in its distinct value proposition. Air coolers provide effective comfort at a substantially lower acquisition and operating cost than compressor-led cooling solutions. For a large base of value-conscious consumers across India, particularly in semi-urban and rural markets, air coolers remain one of the most practical ways to access cooling without a disproportionate increase in electricity expenses.

This makes air coolers relevant not only as a consumer appliance, but as an affordability-led and energy-efficient cooling solution for a warming India.

The category is also undergoing a structural upgrade. Traditional unorganised metal-body coolers are gradually being replaced by organised plastic-body coolers that offer better aesthetics, improved durability, lower maintenance, greater portability, quieter operation, energy efficiency and stronger after-sales support. This shift is expected to benefit branded players with product-development capabilities, quality systems, service infrastructure and distribution depth.

Regulatory developments are likely to accelerate this formalisation. BIS compliance requirements have already come into effect, while energy-rating standards are expected to be implemented in the near term. These measures are expected to raise category quality thresholds and reduce the competitiveness of non-compliant products. Over time, this should favour organised brands with compliant sourcing, reliable product validation, established quality assurance and stronger consumer trust.

The organised segment is therefore positioned to benefit from both category growth and share shift. Organised players invest in R&D, quality assurance, brand-building, warranties, service networks and multi-channel distribution across dealers, modern trade, e-commerce and direct-to-consumer channels. As consumers increasingly evaluate appliances on reliability, energy consumption, serviceability and total cost of ownership, the advantage is likely to move further towards established brands.

The residential segment remains the largest opportunity, supported by first-time adoption, replacement demand and upgradation from unorganised products. Demand remains strong in traditionally hot and dry regions, while rising temperatures, urbanisation and expanding distribution are widening the categorys relevance across Tier II, Tier III and semi-urban markets.

Beyond residential air-cooling, India also represents a large and underpenetrated opportunity in commercial, institutional and industrial air-cooling applications. This opportunity is not fully captured in the residential market-size estimate referred to above. Factories, warehouses, logistics facilities, educational institutions, religious and community spaces, hospitality establishments, retail outlets and other large-format environments increasingly require cost-efficient and energy-efficient cooling alternatives.

This segment is particularly relevant because conventional air-conditioning can be prohibitively expensive for large, semi-open or high-occupancy spaces. Large-space venti-cooling solutions offer a practical alternative by improving thermal comfort while keeping acquisition and operating costs manageable. As industrial activity, warehousing, infrastructure development, organised retail, education and institutional facilities expand, the need for scalable and economical large-space cooling solutions is expected to grow.

For Symphony, the opportunity is therefore broader than household air coolers alone. It includes participation in the natural growth of the residential category, potential share gain from migration towards branded and compliant products, and expansion into commercial and industrial air-cooling applications that remain meaningfully underpenetrated.

Indias cooling market is not a single-solution market. It requires products across price points, climates, spaces and income segments. Air coolers occupy a large and defensible position in this cooling ladder — affordable to buy, economical to run, easier to maintain and increasingly aligned with responsible consumption.

Growth drivers

Rising temperatures: According to World Meteorological Organization (WMO), 2025 was the second or third warmest year on record, about 1.43?C above the 1850-1900 average. The annual global mean temperature of 2025 was lower than the record high of 2024, consistent with the shift from a strong El Ni?o at the start of 2024 to weak La Ni?a conditions at the start and end of 2025. The ten warmest years on record have all occurred since 2015. The global surface temperature in December 2025 was 1.89?F (1.05?C) above the 20th-century average, making it the fifth-warmest December on record. Widespread warmth was observed during December, particularly across much of the Arctic and the Northern Hemisphere land areas, as well as across parts of southern South America, northern Africa, and western Australia. (Source: Assessing the Global Climate in 2025 – National Centers for Environmental Information, WMO (UN Agency))

Economic growth: Indias real GDP growth for FY 2025-26 is estimated at 7.7%, higher than the 7.1% recorded in FY 2024-25. The improvement is supported by strong domestic demand, continued momentum in private consumption, and sustained public investment in infrastructure. A rebound in manufacturing activity, healthy services sector performance, and resilient credit growth have further contributed to the acceleration. Easing inflationary pressures and supportive policy measures have also helped improve business sentiment and investment activity, reinforcing overall economic momentum. (Source: PIB)

Demographics: Individuals aged 15-64 account for 68% of Indias population in 2026, with a median age of 29.2 years — significantly younger compared to 38.7 years in the United States and 40.6 years in China. Indias large youth population represents a dynamic source of innovation, fresh perspectives, and long-term solutions. (Source: World Population Clock, Worldometer)

Urbanisation: India is witnessing a steady shift toward urban living, with a growing share of the population moving to cities. By 2036, towns and cities will be home to 600 million people, or 40% of the population, up from 31% in 2011, intensifying pressure on infrastructure, housing, and civic systems. This movement is largely driven by migration from rural areas in search of better livelihoods and opportunities. The rising urban population is also expected to boost demand for household cooling solutions, supporting growth in the air coolers market nationwide. (Source: World Bank)

Non-metro markets: Non-metropolitan cities are emerging as key growth engines, driven by strong consumption trends and rapid digital adoption. Nearly 93% of Indias future urban consumer growth is expected to come from cities beyond the top five metros, namely Delhi, Mumbai, Kolkata, Bengaluru, and Chennai, with the number of consumer cities projected to reach 499 by 2035. These trends underscore a decisive shift toward non-metro markets as major drivers of Indias consumption growth. (Source: World Economic Forum)

Digital inclusion: India had over 1.03 billion internet users in 2025, with online penetration at 70%, significantly expanding access to information and enabling more confident online purchasing. The rapid growth of e-commerce platforms, supported by competitive pricing and widespread delivery networks, has accelerated this shift. As of 2026, the country has over 270 million e-commerce users, a figure projected to exceed 375 million by 2030. Increasing adoption of digital payments, along with the rise of quick-commerce services, is further improving product accessibility, while targeted digital marketing continues to drive air cooler adoption across markets. (Source: DataReportal, GrabOn)

Rural advancement: Rural advancement remains a key driver for the air cooler industry, with around 62.4% of Indias population projected to reside in rural areas in 2026. Rising incomes and financial inclusion in rural and semi-urban regions are evident from their contribution of nearly half of life and health insurance premiums. The Union Budget 2026-27 further strengthens this momentum, allocating Rs 1,97,023 Crores to the Ministry of Rural Development, a 4% increase over the revised estimates, with PMAY-Gramin accounting for 23% of the spend. This continued focus on rural housing and infrastructure is expected to drive demand for air coolers. (Source: World Bank, Indian Budget)

Labour force dynamics: Indias large and expanding working-age population remains a key driver for the air cooler market. The demographic dividend, with the 15 to 64 age group projected to grow from 735 million in 2011 to around 988.5 million by 2036, is expected to support economic expansion, while its share of the total population is likely to remain stable at ~65% over the next decade. (Source: PIB)

Technological innovation: Consumer preferences are shifting towards advanced features such as smart control, touch-enabled digital panels, remote controls, auto-swing functions, and integrated alarms, accelerating the move away from unorganised and conventional products.

Limited adoption: Indias consumer durables market remains relatively underpenetrated compared to global benchmarks, offering significant growth potential as electronic appliances evolve from discretionary purchases to essential household needs. (Source: IBEF, Department of Commerce, India)

Modern retail expansion: The growing presence of organised retailers in Tier II, III, and IV cities is improving product accessibility and strengthening market penetration.

Financial overview

The Companys consolidated revenue from operations stood at Rs 1,131 Crores in FY 2025-26, compared to Rs 1,576 Crores in FY 2024-25. The consolidated EBITDA (excluding other income, exceptional items, and forex & MTM loss) stood at Rs 128 Crores in FY 2025-26, compared to Rs 316 Crores in the previous year. The Company registered a consolidated PAT (net of exceptional items) of negative Rs 141 Crores in FY 2025-26 compared to Rs 213 Crores in FY 2024-25.

Key ratios

Please refer to Note no. 46 of the Standalone Financial Statements.

Information technology

During the year, we took a significant step forward in our digital transformation journey by focusing on improving how users interact with technology and how efficiently our processes run.

The Company implemented a comprehensive, robust user adoption monitoring system that brings together user feedback, performance insights, and utilisation data — enabling continuous optimisation, a more intuitive user experience, and increased organisational efficiency.

Customer journey takes centre stage

By placing the customer journey at the core of its digital strategy, the Company continued to enhance engagement and transparency across all touchpoints. It expanded the use of AI within its Dealer Management System and strengthened its chatbot capabilities to deliver improved and more responsive customer service.

Information security strengthened

While driving digital transformation, the Company remains steadfast in its commitment to information security. The Company maintained ISO/IEC 27001 certification and undertook transition / audit-related actions aligned with the updated ISO 27001:2022 standard. This ensures that information security risks are identified, quantified, and mitigated, safeguarding the organisations valuable data assets.

Human resource management

As of March 31, 2026, the Companys global workforce, including overseas subsidiaries, comprised approximately 700 employees. The Company believes that its people are a key driver of long-term value creation and remains committed to building an inclusive, collaborative and high-performance workplace anchored in equal opportunity, meritocracy, open communication and continuous employee engagement.

Aligned with its commitment to sustainable and inclusive growth, the Company follows merit-based and bias-free recruitment practices supported by structured interviews, standardised evaluation criteria and gender-neutral job descriptions. The Company continues to strengthen its talent pipeline through outreach across diverse geographies and talent pools, including women candidates and first-generation graduates, while encouraging greater gender diversity across operational, functional and leadership roles.

The Companys Equal Opportunity, Diversity & Inclusion Policy provides the framework for promoting a respectful, equitable and non-discriminatory workplace. Diversity and inclusion initiatives are supported by HR leadership and management oversight, with periodic employee awareness and sensitisation programmes reinforcing expectations around equal opportunity, respectful conduct and inclusive workplace behaviour.

Employee development and engagement remain central to the Companys people strategy. AARAMBH, the Companys structured induction and mentorship programme, supports effective integration of new employees into the organisation. Recognition initiatives such as SHABAASH encourage collaboration, innovation and a culture of appreciation, while employee engagement forums provide channels for communication, feedback and participation across the organisation.

The Company places significant emphasis on employee health, safety and well-being through defined managerial accountability and integrated governance processes. Workplace safety measures, emergency preparedness, first-aid awareness programmes, periodic drills and employee wellness initiatives are implemented under management oversight and supported by established business continuity and disaster management frameworks.

Integrity and ethical conduct are embedded across the organisation through an independent Whistle Blower mechanism. The mechanism is supported by a confidential 24x7 reporting hotline, accessible reporting channels, periodic awareness initiatives and clear communication of the Companys policy framework. Employees and stakeholders are encouraged to report concerns in good faith without fear of retaliation.

The Companys people-centric culture continues to receive external recognition. In February 2026, Symphony was certified as a Great Place to Work? for the fourth consecutive year. The Company was also featured among Indias Top 30 Best Workplaces in Manufacturing 2026 and Indias Top 100 Best Mid-sized Workplaces 2025. These recognitions reflect Symphonys sustained focus on building an inclusive, engaged and high-performing workforce.

Internal control systems and their adequacy

The Company has an adequate internal control system designed to safeguard assets and ensure proper authorisation and recording of transactions. The system also supports maintenance of reliable financial records and compliance with applicable laws and regulations.

The framework is supported by documented procedures, internal and external audits, periodic management reviews, and monitoring of Information Technology General Controls. The compliance function monitors adherence to applicable legal and regulatory requirements and provides timely feedback for corrective actions, wherever required.

The Audit Committee reviews the effectiveness of internal controls, audit, and compliance framework. In the opinion of the Board of Directors and senior management, the Companys internal control systems are adequate and operating effectively.

Cautionary statement

The Management Discussion and Analysis report presents your companys objectives, projections, estimates, and expectations, which may include statements considered forward-looking under relevant laws and regulations.

Actual outcomes may vary significantly from those stated or implied. Key factors influencing the Companys operations encompass raw material availability and pricing, cyclical market demand, product pricing in key markets, regulatory changes, tax frameworks, fluctuations in forex markets, as well as economic developments, both domestically and internationally, where the Company conducts business, along with other incidental factors.