Financial Performance Highlights

Consolidated Financials (FY 2025-26 vs FY 2024-25)

  • Revenue from Operations: ₹2,332.39 million (up 12.3% from ₹2,076.44 million)
  • EBITDA: ₹(113) million (negative, down from positive ₹20 million)
  • Profit After Tax: ₹(318.39) million (wider loss from ₹(289.00) million)
  • Total Comprehensive Income: ₹(328.27) million (wider loss from ₹(284.84) million)
  • Earnings Per Share (Basic & Diluted): ₹(7.18) (from ₹(6.73))

Standalone Financials (FY 2025-26 vs FY 2024-25)

  • Revenue from Operations: ₹748.36 million (down significantly from ₹1,419.12 million)
  • Other Income: ₹373.93 million (includes management fees from subsidiaries)
  • Profit Before Tax: ₹164.41 million (up from ₹118.78 million)
  • Profit After Tax: ₹76.12 million (slightly down from ₹78.33 million)
  • Total Comprehensive Income: ₹76.98 million (from ₹78.44 million)
  • EPS (Basic & Diluted): ₹1.80 (from ₹1.85)

Operational Performance & Strategic Developments

Geographic Revenue Diversification

Significant strategic shift in geographic revenue mix:

  • USA: 77.21% of revenue (down from approximately 89% in FY25)
  • MENA (Middle East/North Africa): 13.16% (up from 7.9%)
  • Canada: 5.01% (up from 0.11%)
  • India (Domestic): 4.56% (up from 3.25%)

Manufacturing Capacity & Utilization

  • Total Combined Capacity: 11.44 lakh square meters annually across Jaipur and Dubai facilities
  • Jaipur SEZ Unit: 5,21,454 sqm capacity, 23% average utilization
  • Dubai Unit (Global Surfaces FZE): 6,22,895 sqm capacity, 44% average utilization (peaked at 66% in November 2025)
  • Premium-grade Output: 87.3% at FZE, 84.9% at SEZ
  • Scrap Rate: Below 0.6% at both facilities

Bagru Unit Discontinuation

Board approved discontinuation of natural stone processing operations at Bagru Unit effective March 31, 2026, due to sustained financial and cash losses, significant under-utilization of capacity, and adverse market conditions. Assets with carrying value of ₹42.91 million classified as held for sale. The unit has been treated as a discontinued operation.

Loan to Equity Conversion

Board approved conversion of ₹1,028.14 million (USD 11,120,997) inter-company loan to Global Surfaces FZE into equity shares at AED 700 per share. Transaction pending JAFZA approvals and formalities as of March 31, 2026.

Subsidiary Performance

Global Surfaces FZE (Dubai)

  • Revenue: AED 59,616,797 (113% growth from AED 27,948,666)
  • Gross Profit: AED 32,426,365 (54.4% margin)
  • Loss After Tax: AED 16,333,223 (from AED 15,576,939)
  • Remained cash profitable before non-cash provisions despite 45 days of regional conflict disruption

Global Surfaces Inc. (USA)

  • Revenue: USD 4,563,119 (48.6% decline from USD 8,870,774)
  • Loss After Tax: USD 8,887 (from profit of USD 6,942)
  • Impacted by US tariff uncertainty and buying pattern disruptions

Superior Surfaces Inc. (USA)

  • Revenue: USD 1,364,097 (31.1% growth from USD 1,040,881)
  • Loss After Tax: USD 319,598 (wider from USD 86,235)
  • Inventory reduced from USD 1,854,251 to USD 954,366

Capital Structure & Significant Accounting Treatments

Share Capital & Warrants

  • Authorized Share Capital: Increased to ₹65 crores (6.5 crore shares of ₹10 each)
  • Issued, Subscribed & Paid-up: ₹42.38 crores (4,23,81,818 equity shares of ₹10 each)
  • Convertible Warrants: 95,00,000 warrants lapsed on June 3, 2025, with ₹49.87 crores forfeited to capital reserve

MAT Credit Write-off

Recognized ₹50 million write-off on MAT credit entitlement due to evaluation that it will not be utilizable under the New Income Tax Act, 2025, charged to statement of profit and loss.

Risk Factors & Forward Outlook

Primary Risks Identified

1. US tariff uncertainty and trade policy changes

2. Geopolitical disruptions in Middle East affecting logistics

3. Input cost volatility and currency fluctuations

4. Competitive pressure in engineered quartz market

Management Commentary

Company is leveraging multi-shore manufacturing capabilities, realigning supply chains, and expanding sales organization while pursuing diversification into new international and domestic markets to mitigate geopolitical and trade policy risks.

Governance & Compliance

Board Changes

  • Mr. Ashish Kumar Kachawa resigned as Non-Executive Non-Independent Director effective March 30, 2026
  • Mr. Rakesh Grover appointed as Additional Independent Director effective March 30, 2026
  • Mr. Yashwant Kumar Sharma redesignated as Non-Executive Non-Independent Director effective July 1, 2026

Auditor Information

  • Statutory Auditor: M/s Ummed Jain & Co., Chartered Accountants appointed for 5-year term
  • Secretarial Auditor: M/s Pinchaa & Co., Company Secretaries appointed for 5-year term

AGM Matters

35th Annual General Meeting scheduled for September 19, 2026 with key resolutions including adoption of financial statements, re-appointment of directors, and appointment of auditors.