Global Surfaces Ltd posts H1 EBITDA gain but net loss remains

Global Surfaces Ltd reported H1-FY27 EBITDA of Rs 9.6 crore and a 7.66% margin, up from Rs 4.4 crore and 3.42% a year earlier, but remained loss-making with a Rs 5.3 crore profit-after-tax loss. Revenue from operations declined 2.6% to Rs 125.3 crore, while other income fell 80.9%.

How did Global Surfaces perform in H1-FY27?

Global Surfaces generated Rs 9.6 crore of earnings before interest, tax, depreciation and amortisation (EBITDA) in H1-FY27, compared with Rs 4.4 crore a year earlier, as total expenses fell faster than revenue. Revenue from operations declined by Rs 3.3 crore to Rs 125.3 crore, while total expenses fell by Rs 8.5 crore to Rs 115.7 crore. That movement lifted EBITDA margin by 424 basis points, where one basis point is one-hundredth of a percentage point, to 7.66% from 3.42%.

The operating improvement did not produce a profit after tax (PAT). Depreciation and amortisation was Rs 9.2 crore against Rs 9.1 crore in H1-FY26, while finance costs were Rs 7.1 crore compared with Rs 7.3 crore. After these charges and a tax expense of Rs 40 lakh, Global Surfaces reported a PAT margin of negative 4.23%, versus negative 3.97% in the prior-year half.

Why did Global Surfaces remain loss-making despite positive EBITDA?

Global Surfaces remained loss-making because other income dropped to Rs 1.8 crore in H1-FY27 from Rs 9.4 crore in H1-FY26, an 80.9% fall that outweighed the Rs 5.2 crore increase in EBITDA. The company specifically attributed lower other income to reduced unrealised foreign-exchange gains, saying these gains declined to Rs 2.172 crore from Rs 8.104 crore.

As a result, profit before tax moved to a Rs 4.9 crore loss from a Rs 2.6 crore loss, despite the improvement in operating earnings. PAT widened by Rs 20 lakh to a Rs 5.3 crore loss, and diluted earnings per share were negative Rs 1.21, compared with negative Rs 1.20 in H1-FY26. Total comprehensive income, which includes other comprehensive income, improved to a Rs 4.2 crore loss from a Rs 5.6 crore loss because other comprehensive income was Rs 1.1 crore rather than a Rs 50 lakh loss.

What changed in Global Surfaces’ second quarter?

Global Surfaces returned to positive quarterly EBITDA in Q2-FY27, reporting Rs 1.3 crore against a Rs 3.6 crore EBITDA loss in Q2-FY26. Quarterly revenue rose 10.7% to Rs 59.9 crore from Rs 54.1 crore, while total expenses increased only 1.6% to Rs 58.6 crore. EBITDA margin consequently improved to 2.17% from negative 6.65% a year earlier.

The Q2 result was lower than Q1-FY27, when EBITDA was Rs 8.3 crore on revenue of Rs 65.4 crore and an EBITDA margin of 12.69%. Q2 other income fell to Rs 1.5 crore from Rs 9.2 crore in Q2-FY26, and the quarter ended with a Rs 5.4 crore PAT loss, compared with a Rs 4.6 crore loss a year earlier and a Rs 6 lakh profit in Q1-FY27. Finance costs were unchanged sequentially at Rs 3.5 crore.

How does H1-FY27 compare with Global Surfaces’ recent annual record?

Global Surfaces’ H1-FY27 EBITDA of Rs 9.6 crore contrasts with a Rs 11.3 crore EBITDA loss in FY26, when its margin was negative 4.85%. The latest half-year margin of 7.66% also exceeds the 0.96% reported in FY25, although it remains below FY24’s 15.53%. Revenue was Rs 125.3 crore in H1-FY27, compared with Rs 233.2 crore for all of FY26 and Rs 207.6 crore for FY25.

Net profitability has not yet followed the operating recovery. Global Surfaces recorded a Rs 31.8 crore PAT loss in FY26 and a Rs 28.9 crore loss in FY25, following a Rs 19.8 crore profit in FY24. The H1-FY27 loss of Rs 5.3 crore was smaller than either of those full-year losses, but the source does not provide a full-year FY27 profit target or forecast.

What balance-sheet and expansion actions did Global Surfaces report?

Global Surfaces reported net worth of Rs 266.6 crore at H1-FY27, down from Rs 270.9 crore at FY26, while its debt-to-equity ratio moved to 0.58 times from 0.60 times. Non-current borrowings declined to Rs 43.3 crore from Rs 47.3 crore, but current borrowings were Rs 112.1 crore, compared with Rs 116 crore at FY26. Cash and cash equivalents fell to Rs 1.5 crore from Rs 3.8 crore, while trade receivables rose to Rs 113 crore from Rs 96.4 crore.

The board approved conversion of an additional Rs 110.44 crore of unsecured loans in Global Surfaces FZE into equity, with the amount reclassified as an advance towards equity subscription pending regulatory formalities. On market development, Global Surfaces began domestic dispatches in India in October 2026 after expanding its marketing team, and said it is pursuing further UAE market diversification using its existing manufacturing capabilities and infrastructure.

Conclusion

Global Surfaces’ H1-FY27 figures show an operating improvement, with EBITDA rising to Rs 9.6 crore and margin reaching 7.66% as expenses declined 6.8% on revenue of Rs 125.3 crore. However, the Rs 7.6 crore decline in other income, including lower unrealised forex gains, left the company with a Rs 5.3 crore PAT loss and a negative 4.23% PAT margin.

The next disclosures should show whether domestic dispatches started in October 2026 and UAE diversification can support revenue beyond the Rs 59.9 crore recorded in Q2-FY27. They should also clarify completion of regulatory formalities on the Rs 110.44 crore Global Surfaces FZE equity-subscription advance and whether other income remains below the Rs 9.4 crore reported in H1-FY26.