Global Surfaces Q2 FY27 results: net loss widens to ₹5.40 crore, revenue up 10.7%

How did Global Surfaces perform in Q2 FY27?

Global Surfaces reported consolidated revenue of ₹59.88 crore for Q2 FY27, up 10.7% from ₹54.08 crore in Q2 FY26. EBITDA was ₹1.26 crore, against a loss of ₹3.55 crore a year earlier, and the EBITDA margin improved to 2.1% from negative 6.6%. The company reported a net loss of ₹5.40 crore and basic EPS of negative ₹1.25, compared with a net loss of ₹4.55 crore and basic EPS of negative ₹1.1 in Q2 FY26.

Against Q1 FY27, consolidated revenue fell 8.5% to ₹59.88 crore from ₹65.42 crore. EBITDA declined 84.9% to ₹1.26 crore from ₹8.33 crore, while the margin fell to 2.1% from 12.7%. PBT moved from a profit of ₹0.48 crore to a loss of ₹5.41 crore, and PAT moved from a profit of ₹0.06 crore to a loss of ₹5.40 crore; basic EPS was negative ₹1.25 against ₹0.04. On a standalone basis, Q2 FY27 revenue was ₹19.64 crore and PAT was ₹0.05 crore.

What changed in Global Surfaces' costs and profit?

Total expenses were ₹66.87 crore in Q2 FY27, up 1.3% from ₹66.02 crore in Q2 FY26. Cost of materials rose 17.5% to ₹26.37 crore from ₹22.45 crore, while other expenses fell 9.0% to ₹20.08 crore from ₹22.06 crore. Employee cost was ₹8.09 crore against ₹8.32 crore, finance costs were ₹3.54 crore against ₹3.67 crore, and depreciation was unchanged at ₹4.72 crore; there was no exceptional item.

Other income fell 82.7% to ₹1.59 crore from ₹9.17 crore, while tax was ₹0 crore compared with ₹1.78 crore in Q2 FY26. The filings do not state the reason for the fall in other income. EBITDA improved despite the lower other income, but the reported PBT was a loss of ₹5.41 crore, compared with a loss of ₹2.78 crore a year earlier; the net loss was ₹5.40 crore, compared with ₹4.55 crore.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹125.3 crore, down 2.6% from ₹128.58 crore in H1 FY26. Total income fell 7.9% to ₹127.08 crore from ₹137.97 crore, while PBT was a loss of ₹4.92 crore against a loss of ₹2.66 crore. PAT was a loss of ₹5.34 crore, compared with a loss of ₹5.12 crore, and basic EPS was negative ₹1.21 against negative ₹1.2.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹542.14 crore, compared with ₹540.69 crore at 31 March 2026. Total equity was ₹266.65 crore against ₹270.89 crore, borrowings were ₹155.44 crore against ₹163.3 crore, and cash was ₹1.47 crore against ₹3.78 crore. Inventories were ₹81.93 crore against ₹87.41 crore, trade receivables were ₹112.98 crore against ₹96.42 crore, and trade payables were ₹50.83 crore against ₹41.72 crore.

H1 FY27 operating cash flow was ₹12.37 crore, compared with ₹9.02 crore in H1 FY26. Investing cash flow was ₹0.03 crore against a negative ₹4.45 crore, financing cash flow was negative ₹14.7 crore against negative ₹2.52 crore, and capital expenditure was ₹0.09 crore against ₹3.11 crore.

How has Global Surfaces done over the last 8 quarters?

Revenue reached its highest level in the reported series at ₹74.5 crore in Q1 FY26 and fell to ₹54.08 crore in Q2 FY26 before recovering to ₹65.42 crore in Q1 FY27. It then declined to ₹59.88 crore in Q2 FY27, while the latest EBITDA margin was 2.1%.

PAT was lowest at a loss of ₹23.38 crore in Q4 FY26 and turned positive at ₹0.06 crore in Q1 FY27 before moving to a loss of ₹5.4 crore in Q2 FY27. The EBITDA margin bottomed at negative 41.8% in Q4 FY26, recovered to 12.7% in Q1 FY27, and eased to 2.1% in the latest quarter.

Which businesses drove the quarter?

India reported revenue of ₹19.64 crore in Q2 FY27, up 19.0% from ₹16.51 crore in Q2 FY26, with EBIT of ₹0.27 crore and an EBIT margin of 1.4%. The United States of America reported revenue of ₹12.48 crore, up 4.8% from ₹11.91 crore, with EBIT of ₹0.02 crore and an EBIT margin of 0.1%.

The United Arab Emirates reported revenue of ₹40.06 crore, up 22.3% from ₹32.76 crore, but EBIT was a loss of ₹5.65 crore, compared with a loss of ₹9.96 crore, and the EBIT margin was negative 14.1%.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, together with the statement of assets and liabilities and statement of cash flows, on the recommendation of the audit committee. It also took note of the limited review reports issued by Ummed Jain & Co.

The board approved Sudhir Baxi’s re-appointment as a non-executive independent director, not liable to retire by rotation, for a second term of 5 consecutive years from 20 December 2026 to 19 December 2031. The appointment requires members’ approval by special resolution, and the board approved a postal ballot notice seeking that approval through remote e-voting. The company also filed a revised Q2 and first-half FY27 earnings presentation on 3 November 2026, correcting the sign convention for the year-on-year percentage change without changing the reported financial figures.

What did the auditors point out?

The limited review report included an emphasis of matter concerning the conversion of existing loans given to wholly owned subsidiary Global Surfaces FZE. The company approved conversion of loans amounting USD 10,857,591 and AED 3,000,000, equivalent to INR 1112.11 million based on the reference rate of 10 August 2026, into equity shares on 10 August 2026. The loans were reclassified from non-current loans to non-current other financial assets in the unaudited balance sheet as of 30 September 2026 because the requisite formalities of the conversion process were under way.

The auditors stated that their conclusion was not modified in respect of this matter. They also stated that nothing had come to their attention indicating that the standalone interim financial statements had failed to disclose the information required under Regulation 33 of the Listing Regulations or contained a material misstatement. This was a limited review, not an audit, and the report did not express an audit opinion.

What did Global Surfaces' management say?

Management said a quarterly revenue run rate of ₹70-80 crore was more realistic for Q4 FY27 if geopolitical conditions stabilised. It did not provide formal FY27 revenue or margin guidance. Domestic dealer distribution was planned for Q3 FY27, with dispatches scheduled from November 2026, and receivables were expected to return to regular levels toward the end of Q3 FY27 after UAE dispatches resumed and the 90-150-day collection cycle unwound.

Management said it expected EBITDA margin to improve as utilisation increased and geopolitical conditions stabilised, but gave no FY27 margin target. It said some continuing input and freight inflation could be passed on after the market adjusted to Section 201 pricing. Chairman and Managing Director Mayank Shah said: “We have not been able to pass on much of the cost to the customer. Most of the cost at this point of time is already being absorbed by the company.”

Management identified U.S. Section 201 safeguards, raw-material inflation of 25%-50%, nearly fivefold freight inflation, geopolitical tensions and pending ODI/FEMA and Jebel Ali formalities as risks. It said U.S. quartz safeguards set a 13 million sqm first-year quota, with 25% duty inside it and 50% above it, and that a ₹110.44 crore subsidiary loan was approved for equity conversion, with regulatory formalities still pending.

How did Global Surfaces shares react?

Global Surfaces’ shares were down 3.2% from the previous close by the close of the first session that could trade on the filing, after being up 1.1% at 15 minutes and down 4.7% at 30 minutes. By the next day’s close, the stock was down 2.4% from its pre-results close. The Granites & Marbles industry median was down 1.0% on the reaction day and negative 0.7% by the next day, while the Nifty Microcap 250 was up 0.3% and 2.4%, respectively.

The stock underperformed the industry median by 2.2 percentage points on the reaction day and by 1.7 percentage points by the next day’s close. Earlier results-day moves were mixed: the stock rose 4.2% on 10 August 2026, fell 0.8% on 25 May 2026, rose 0.8% on 3 February 2026 and rose 2.7% on 13 November 2025.