Global Surfaces Reports Q2 FY26 Loss Amid Challenging Market Conditions

Global Surfaces Limited , a prominent player in the natural stones and engineered quartz products industry, has reported a consolidated net loss of INR 46.00 million for the second quarter of fiscal year 2026. The company's performance reflects the ongoing challenges in the market, particularly in its India operations.

Financial Highlights

Revenue: The company posted a consolidated revenue of INR 541.00 million for Q2 FY26, marking a 15.1% increase year-over-year from INR 470.00 million in Q2 FY25. However, this represents a 27.4% decrease from the previous quarter's revenue of INR 745.00 million.
EBITDA: The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) turned negative at INR -36.00 million, with margins at -6.65%. This is a significant drop from the positive EBITDA of INR 17.00 million and 3.62% margin in the same quarter last year.
Net Loss: The company reported a net loss of INR 46.00 million, an improvement from the INR 62.00 million loss in Q2 FY25, but a decline from the INR 6.00 million loss in the previous quarter.

Operational Performance

The company's performance in Q2 FY26 was marked by contrasting trends across its global operations:

Dubai Facility: The manufacturing unit in Dubai showed meaningful improvement, with utilization rising to approximately 53%. This facility experienced stronger traction in the Middle East and North America markets.
India Operations: The domestic operations remained soft, primarily due to uncertainty surrounding US tariffs on Indian products.

Market Diversification Strategy

Global Surfaces is actively pursuing a strategy to diversify its market presence:

Scaling up operations in the Middle East and North Africa (MENA) region
Expanding its low-silica product portfolio
Strengthening its position in various markets to build a more resilient growth pathway

Half-Yearly Performance

For the first half of FY26, Global Surfaces reported:

Metric	Value	YoY Change
Revenue from operations	INR 1,286.00 million	23.5% growth
EBITDA	INR 43.00 million	53.8% decline
Net loss	INR 51.00 million	Improved from INR 75.00 million loss in H1 FY25

Looking Ahead

As Global Surfaces continues to adapt to market conditions, the company's diversification strategy and operational improvements, particularly in its Dubai facility, will be crucial factors to watch. The company's ability to manage costs, improve utilization rates, and capitalize on growth opportunities in international markets will be key in its efforts to return to profitability.

Note: All financial figures are in Indian Rupees (INR) and are based on the consolidated financial results for Q2 FY26 as reported by Global Surfaces Limited.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.69%	+0.48%	+43.97%	-1.94%	-25.89%	-23.29%

Global Surfaces Limited (GSL) has reported a consolidated net loss of Rs. 45.53 crore for the quarter ended September 30, 2025, as the company grapples with market challenges and undergoes significant corporate changes.

Financial Performance

The company's financial results for Q2 FY2026 paint a challenging picture:

Particulars (in Rs. crore)	Q2 FY2026	Q2 FY2025	H1 FY2026	H1 FY2025
Revenue from Operations	540.75	469.65	1,285.79	1,041.13
Total Income	632.41	480.08	1,379.71	1,058.48
Loss Before Tax	(27.76)	(49.86)	(26.59)	(47.32)
Loss After Tax	(45.53)	(61.99)	(51.25)	(74.61)

Despite a year-on-year increase in revenue, the company's losses have widened compared to the previous year. The loss per equity share (face value of Rs. 10 each) stands at Rs. 1.10 for the quarter, compared to Rs. 1.51 in the same quarter last year.

Market Challenges

Global Surfaces Limited faces uncertainty due to elevated US tariffs on India-bound goods. This situation is particularly concerning given the company's significant exposure to the US market. However, GSL maintains multi-shore manufacturing capabilities, including operations in Dubai's Jebel Ali Free Zone, which may potentially help mitigate some of these challenges.

Corporate Developments

In a significant development, the company announced the resignation of its statutory auditor, B. Khosla & Co., Chartered Accountants (Firm Registration No. 000205C). The resignation is effective from the close of business hours on November 13, 2025, and applies to both Global Surfaces Limited and its material subsidiary, Global Surfaces Inc.

The Audit Committee and Board of Directors have noted that there are no concerns raised by the resigning auditor regarding the company's management. The resignation appears to be due to certain pre-occupations of partners and lack of alternative resources pertaining to the rotation of partners as stipulated in auditing standards.

Looking Ahead

The company's Board of Directors has initiated the process to fill the casual vacancy arising from the auditor's resignation. This change, coupled with the ongoing market challenges, suggests a period of transition for Global Surfaces Limited.

As the company navigates these challenges, investors and stakeholders will be closely watching how GSL adapts its strategies to improve its financial performance and address the market uncertainties, particularly in relation to its US market exposure.