Global Surfaces puts 98% of H1 revenue in engineered stones

In H1-FY27, Global Surfaces Limited reported that engineered stones represented 98% of segmental revenue after its Bagru natural-stone unit ceased operations from March 31, 2026. Global Surfaces disclosed Rs 125.3 crore of engineered-stone revenue and Rs 1.9 crore from natural stones for the half year, underlining the scale difference between the two reported businesses.

Why did Global Surfaces close its Jaipur natural-stone unit?

Global Surfaces closed the natural-stone unit after its Board of Directors approved the discontinuation on February 3, 2026, effective March 31, 2026. The unit was located at Industrial Area, Bagru, Jaipur. After the effective date, the company said it carried out only limited activities to orderly close existing orders, rather than continuing normal natural-stone operations.

The closure did not cover all Jaipur manufacturing. Global Surfaces operates Unit 1 at Mahindra World City Special Economic Zone, Jaipur, for engineered stones, with stated annual capacity of 521,454 square metres and a research and development facility. The discontinued Bagru business had offered granite, marble and quartzite products using a cut-to-size technology setup.

Natural-stone revenue had fallen from Rs 18 crore in FY24 to Rs 12.7 crore in FY25, before reaching Rs 13.3 crore in FY26. It then declined to Rs 1.9 crore in H1-FY27, while reported natural-stone volume moved from 37,377 square metres in FY24 to 6,701 square metres in H1-FY27. The H1-FY27 result includes the period following the March 31, 2026 operating discontinuation.

How dominant are engineered stones in Global Surfaces revenue?

Engineered stones accounted for 98% of Global Surfaces' H1-FY27 segmental revenue, compared with 2% for natural stones. This reported mix is the presentation's direct measure of the business composition during the half year in which the natural-stone operation was being closed.

Global Surfaces reported Rs 125.3 crore of engineered-stone revenue in H1-FY27, against Rs 1.9 crore for natural stones, and reported volumes of 185,147 square metres and 6,701 square metres, respectively. Engineered stones include quartz-based slabs made from 90% ground quartz and 10% pigments and binders, whereas natural stones were sourced from quarried rock categories.

Engineered-stone revenue increased by Rs 75.9 crore between FY24 and FY26, while reported volume rose from 290,915 square metres to 395,886 square metres. Over the same full-year comparison, natural-stone revenue declined by Rs 4.7 crore and volume fell from 37,377 square metres to 27,575 square metres. The period comparison shows growth in the engineered-stone business while the natural-stone business remained below its FY24 level.

Where will Global Surfaces make engineered stones after Bagru?

Global Surfaces will make engineered stones at its Jaipur Unit 1 and through Global Surfaces FZE in Dubai. The Jaipur facility has stated capacity of 521,454 square metres a year, while the Dubai facility has 622,895 square metres, giving a calculated combined capacity of 1,144,349 square metres a year.

The presentation gives a second total engineered-stone capacity of 1,144,540 square metres a year, which differs by 191 square metres from the sum of the two facilities. The Dubai plant occupies a leased 39,657.63-square-metre site in Jebel Ali Free Zone and is close to Jebel Ali Port, while the Jaipur facility occupies 24,139 square metres. Global Surfaces cites port access and free-trade-zone privileges for Dubai, but does not quantify their financial effect.

Global Surfaces reported that exports generated 96% of H1-FY27 geographical revenue and domestic activity generated 4%. Its US subsidiaries, Global Surfaces Inc. and Superior Surfaces Inc., undertake distribution-related activities in the US market; Global Surfaces holds a 50% equity stake in Superior Surfaces Inc. and says it retains board-level and key-policy control.

What products and licensed technology support engineered stones?

Global Surfaces sells engineered quartz in five series: Aurora, Kalm asa, Prismatic, Stratum and Quartzite. The company markets customised slabs and countertops for applications including flooring, indoor wall cladding, vanity tops, reception desks, table tops and staircases, with H1-FY27 engineered-stone volume reported at 185,147 square metres.

Global Surfaces FZE entered into a licence agreement on July 10, 2024 with SQIP, LLC and Veegoo Technology Co. Ltd. for certain licensed engineered-quartz products. The company says the arrangement grants exclusive, non-transferable and non-sublicensable rights to use licensed patents and know-how in the Middle East and North Africa, known as MENA, and FROR in India, as described in the presentation.

The Marquartz range uses technologies identified as Non-Push-Up Vein Technology, Push-Up Vein Technology, RIFT VEIN technology and CONVERGENCE technology. Global Surfaces says these methods are intended to create random-looking veining and colour patterns in quartz slabs. The presentation also cites more than 20 utility patents secured over the preceding seven years, but does not disclose Marquartz revenue, volume or a sales target.

How did Global Surfaces revenue and EBITDA margin change?

Global Surfaces reported operational revenue of Rs 125.3 crore and an earnings before interest, taxes, depreciation and amortisation, or EBITDA, margin of 7.66% in H1-FY27. This followed Rs 233.2 crore of operational revenue and an EBITDA margin of negative 4.85% in FY26, although H1-FY27 covers only six months and is not directly comparable with a full financial year.

Operational revenue decreased by Rs 17.7 crore from FY24 to FY25, then increased by Rs 25.6 crore in FY26. EBITDA margin moved from 15.53% in FY24 to 0.96% in FY25 and negative 4.85% in FY26, before the 7.66% H1-FY27 result. Global Surfaces provides no FY27 operational-revenue or EBITDA-margin target in the presentation.

The presentation separately lists H1-FY27 operational revenue of Rs 125.3 crore, engineered-stone revenue of Rs 125.3 crore and natural-stone revenue of Rs 1.9 crore. It does not provide a reconciliation between the operational-revenue table and the segment-revenue disclosures. The stated 98% and 2% segment mix should therefore be read as the company's reported segmental breakdown.

Conclusion

Global Surfaces has concentrated its reported H1-FY27 revenue mix in engineered stones, which accounted for 98% of segmental revenue as the Bagru natural-stone unit moved into orderly closure after March 31, 2026. The company retains engineered-stone manufacturing in Jaipur and Dubai, while exports represented 96% of H1-FY27 geographical revenue.

The next disclosed execution point is the use of the July 2024 licence by Global Surfaces FZE for Marquartz and other licensed engineered-quartz products in MENA and FROR in India. Investors can also watch whether the company clarifies the 191-square-metre difference between its stated total capacity of 1,144,540 square metres and the 1,144,349-square-metre sum of its two facility capacities.