Acche Din under threat for Symphony? Australian subsidiary further pushes company into ₹218 Cr loss

Ahmedabad: Home appliance brand Symphony Limited has been pushed into a ₹218 crore loss in Q4FY26 on account of the impairment challenges with its Australian subsidiary. This loss has worsened over time, even as it reported a ₹79 crore net loss reported during the same period last year.

The reason behind the hit: The doomed Australian acquisition 

This loss has come mainly from its 2018 acquisition of Climate Holdings Pty Limited. The Ahmedabad-based company had acquired the Australian company to establish a cross-border cooling footprint, but the acquisition has remained a drag on the company for years, given the high operational overheads and the shifts in the global manufacturing dynamics. 

Symphony has, over the years, worked to address the challenge with its Australian subsidiary, deploying AUD 25 million (about ₹165 crores) out of its cash reserves to pay back its AUD 20 million debt and AUD 5 million in working capital borrowings. 

Despite this, the company has had to write off most of its investments in Australia as impairments, as the company has failed to complement its operations since acquiring it, even as it decided to outsource manufacturing from its in-house processes, resulting in significant severance and disposal losses. 

To prevent further losses, the company has now directly taken ownership of Climate Holdings’ profitable Bonaire brand as it looks to expand to major retail and e-commerce chains. 

Even as the company reported a 46% decline in Q4 revenues to ₹199 crore from ₹368 crore, and a decline in the earnings per share to ₹-38.6, Symphony has, nevertheless, declared a final dividend of ₹5 per share for the financial year. 

Comparative Earnings Baseline: FY26