ECONOMIC REVIEW
The global economy during FY 2025- 26 operated in a more complex and fragile setting than in the previous year, as trade frictions, policy uncertainty and tighter financial conditions continued to weigh on business sentiment and cross- border investment. The OECD projected global GDP growth to slow from 3.3% 3.3% in 2024 to 2.9% 2.9% in both 2025 and 2026, indicating a softer expansion cycle led by weaker momentum in major advanced economies. The slowdown was expected to be more visible in the United States, Canada and Mexico, while China and several other economies were projected to record milder moderation.
At the same time, inflation conditions improved gradually but remained uneven across regions. The OECD noted that annual headline inflation in G20 economies was expected to ease from 6.2% 6.2% in 2025 to 3.2% 3.2% in 2026 after moderating to 3.6% 3.6% in 2025, although some economies continued to face price pressure from higher trade costs and supply- side adjustments. Global trade growth was also expected to soften after earlier front- loading ahead of tariff actions, and this was likely to restrain capital expenditure and investment planning across a wide set of industries.
| Indicator | 2024 | 2025 | 2026 |
| Global GDP growth | 3.30% | 2.90% | 2.90% |
The near- term global outlook remains cautious. Growth is likely to stay restrained so long as elevated tariffs, geopolitical tensions and policy unpredictability continue to influence
trade and investment decisions. However, any easing in trade barriers, improvement in policy coordination or early resolution of major geopolitical conflicts could support a more stable recovery in output and business confidence.
India continued to remain one of the fastest- growing major economies during FY 2025- 26, supported by resilient domestic demand, moderated inflation and sustained public capital expenditure. The OECD projected Indias real GDP to grow by 6.3% 6.3% in FY 2025- 26 and 6.4% 6.4% in FY 2026- 27, with private consumption expected to strengthen gradually on the back of rising real incomes, tax relief and an improving labour market. Investment was also expected to receive support from declining interest rates and continued public spending, although exports were likely to remain sensitive to external tariff and demand conditions.
The broader macro environment remained constructive. Inflation was projected to stay around 4% 4% , keeping it broadly within the policy comfort range, while the Union Budget for FY 2025- 26 targeted fiscal consolidation by reducing the headline budget deficit from 4.8% 4.8% of GDP in FY 2024- 25 to 4.4% 4.4% in FY 2025- 26. Indias growth profile was also supported by structural drivers such as logistics uprates, digital infrastructure expansion, urbanisation and an ongoing shift towards higher- value manufacturing and services.
Indias medium- term outlook remains favourable, underpinned by strong internal demand, a gradual easing in financial conditions and continuing infrastructure creation. Improvements in logistics efficiency, digital connectivity and policy predictability are expected to support private investment, while a stable inflation trajectory should help preserve macroeconomic balance. Key watchpoints remain weather- related food inflation, global commodity price movements and external trade conditions.
The global engineered quartz stone industry continued to expand during FY 2025- 26, supported by demand from residential construction, renovation, hospitality, commercial interiors and institutional projects. The market was estimated at US$14.83 billion in 2025 and is projected to reach US$28.07 billion by 2034, registering a CAGR of 7.2% 7.2% over the forecast period. Engineered quartz has carved out a distinct position within the surfacing materials industry by combining the visual character of natural stone with greater consistency, predictable performance and low maintenance, supported by a non- porous, stain- resistant surface available across an
expanding range of colours, textures and patterns.
The category continues to widen beyond its traditional association with kitchen countertops, gaining traction in vanity tops, wall panels, tabletops, reception counters, work surfaces, furniture and select architectural elements. This broadening application base is bringing manufacturers into closer engagement with architects, interior designers, developers, furniture companies, hospitality operators and institutional buyers, rather than end- consumers alone.
Demand continues to be shaped differently across markets. In developed economies, ageing housing stock and replacement- led renovation of kitchens and bathrooms remain the primary growth driver, while in emerging economies, urbanisation, rising incomes, organised housing development and the spread of modular kitchens and branded bathroom solutions are expanding the addressable market. Commercial and institutional demand - from hotels, offices, retail, healthcare and education - is also gaining share, as these segments require surfaces that combine visual consistency with durability across multiple installations.
Purchasing decisions are becoming increasingly specification- led, with architects, consultants, designers and contractors playing a larger role in material selection. This is pushing manufacturers to support sales with technical documentation, physical samples, digital design libraries and installation guidance, rather than slabs alone.
Design has emerged as the industrys principal axis of differentiation. Products have moved from a focus on durability and uniformity toward marble- inspired, concrete- inspired, terrazzo- style and mineral- textured collections that replicate the visual depth and veining of premium natural materials, aided by advances in pigmentation, particle distribution and surface treatment. Digital slab visualisation and room- simulation tools are supporting this shift by helping customers evaluate colours, patterns and finishes ahead of purchase.
On the production side, engineered quartz manufacturing demands tight control over raw material proportioning, mixing, vacuum pressing, curling, calibration and polishing, since variations at any stage affect colour consistency and structural performance. Automation, digitally controlled batching, automated slab handling, and machine- assisted inspection is improving throughput, reducing rejection rates
and enabling more complex, deeper- set patterns that remain visible after cutting and edge finishing. The value chain extends from mineral, resin and pigment suppliers through to fabricators, installers and retailers, making coordination and fabricator training critical to consistent installation quality.
Occupational exposure to respirable crystalline silica during cutting, drilling, grinding and polishing has become
a defining regulatory issue for the industry. Australias prohibition on specified engineered stone products from 1 July 2024 sharpened global scrutiny of product composition and fabrication conditions, prompting regulators elsewhere to tighten exposure controls. In response, manufacturers are exploring lower- silica formulations and alternative mineral inputs, while fabricators are strengthening wet- processing, dust extraction and worker protection systems - making compliance an increasingly important factor in supplier selection rather than a purely fabrication- level concern.
Environmental considerations are gaining parallel importance, with manufacturers focused on reusing quartz particles and process residue, improving water recycling, and evaluating recycled aggregates and alternative binders. As sustainability requirements strengthen among architects and institutional buyers, credible environmental disclosures and product- level transparency are likely to become a stronger basis for specification- driven business.
Competition is intensifying as manufacturing capacity and process technology become more widely available, exposing basic colours and conventional designs to price- based competition, while proprietary patterns, curated collections and technical service increasingly define differentiation. The category also competes with granite, marble, porcelain slabs, sintered surfaces and laminates, each offering a different balance of appearance, price, weight and fabrication flexibility. Input- cost volatility in quartz feedstock, resins, pigments, energy and freight, alongside tariffs and trade
remedy measures in key markets, remain persistent risks for exporters.
Overall, the industry is moving toward a more design- led, technology- intensive and compliance- focused model. Companies combining differentiated design with disciplined manufacturing, strong safety credentials and diversified market and application exposure are best positioned for sustained growth, with scale alone no longer sufficient as a competitive advantage.
India has developed into an important manufacturing and export base for engineered quartz surfaces, supported by access to quartz minerals, an established stone- processing ecosystem and competitive manufacturing capabilities. The Indian market generated revenue of approximately US$889.6 million in 2025 and is expected to reach US$1,579.6 million by 2033, registering a CAGR of 7.6% from 2026 to 2033 thereby outpacing the global growth rate. Blocks and slabs remained the largest product segment in 2025, reflecting the continued importance of standard formats across both domestic consumption and exports. Unlike the global industry, which is largely shaped by consumer demand and renovation cycles, the Indian industry is more directly influenced by manufacturing economics, export demand, destination- market regulations and distribution access.
The industry draws on established mineral and stone- processing clusters, particularly in Rajasthan, which provide an experienced workforce and existing infrastructure in material handling, slab processing, polishing and export logistics. Indian producers have gradually expanded beyond basic slab manufacturing into a wider range of colours, patterns, textures and finishes to improve realisations and reduce dependence on price- sensitive standardised products, though manufacturing discipline and batch consistency remain critical differentiators as international buyer expectations rise.
GLOBAL SURFACES LIMITED 01 36 37 114 115 248 Corporate Overview Statutory Reports Financial Section
The industry remains substantially export- oriented, with overseas demand strongly influencing capacity utilisation, specifications and production planning — a dependency that also creates sensitivity to housing cycles, distributor inventories, tariffs and trade- remedy measures in destination markets. Overseas buyers are placing growing emphasis on certification, traceability and compliance readiness alongside price, rewarding manufacturers who combine competitive production with consistent quality and credible documentation.
The domestic market, while smaller, is gradually becoming more organised, supported by premium residential construction, modular kitchens, hospitality projects and rising awareness of branded surface materials. Architects, designers, kitchen solution providers and retailers increasingly shape product selection, and customers are showing growing interest in colour consistency, natural- looking patterns and stain resistance — though price sensitivity, uneven fabricator quality, and competition from granite, marble and porcelain continue to constrain broader domestic adoption.
Key operating challenges include raw material and resin cost volatility, energy and freight expenses, breakage risk during transportation of heavy slabs, and geographic concentration in a limited set of export markets. Rising global scrutiny of respirable crystalline silica exposure is also becoming increasingly relevant for Indian exporters, requiring greater
investment in safer formulations, labelling and customer education, while smaller and less- organised manufacturers may struggle to fund the automation, testing and compliance systems needed to compete internationally.
The outlook for the industry remains linked to its ability to shift from cost- based manufacturing toward design- led, compliant and technologically advanced production. Manufacturers that diversify market exposure, strengthen domestic distribution, invest in safer formulations and build stronger fabricator relationships are best positioned to benefit from the next phase of growth, supported by Indias strong mineral base, processing knowledge and established export capabilities.
The global natural stone industry continued to retain its relevance across construction, architecture and interior applications during FY 2025- 26, with demand supported by premium residential development, commercial projects, hospitality spaces, public infrastructure, and renovation activity across both developed and emerging markets. Unlike India, where the market remains one of the fastest- growing globally, the worldwide industry reflects a more mature growth profile, with the global natural stone market estimated at US$41.82 billion in 2025 and projected to reach US$56.31 billion by 2034, registering a CAGR of 3.4% from 2026 to 2034.
At a segment level, granite continues to dominate the global product mix with a 36% market share, while flooring remains the leading application at 45% of global demand, followed by wall cladding and memorial arts. By construction type, new construction represents 60% of global demand, indicating that unlike Indias renovation and premiumisation-led growth story, much of the worlds natural stone consumption is still tied to fresh building activity in large emerging economies.
Regionally, Asia- Pacific led the global market with a 30% share in 2025, supported by its quarrying infrastructure, urban development and domestic consumption, while Europe followed with strength in heritage restoration and luxury construction in countries such as Italy, Spain and Turkey, and North America contributed through renovation- led granite countertop and marble flooring demand. According to the
US Geological Survey, Brazil, Italy, China and India together accounted for roughly 73% of dimension stone import value into the United States between 2021 and 2024, with Brazil and India dominating granite supply specifically at 41% and 25% of import value respectively thereby underscoring how global trade flows remain concentrated among a small set of major producing nations.
Globally, growth opportunities are increasingly concentrated in renovation- led demand in mature markets, where ageing residential and commercial stock continues to generate steady replacement volumes, particularly for granite countertops and marble flooring in North America and heritage restoration work across Europe. In the Middle East and Africa, luxury construction and religious architecture are creating a distinct demand pocket, with the region importing meaningfully from Turkey and India to meet decorative and premium material requirements.
Beyond regional demand pockets, the global industry has room to move up the value chain through precision- cut, ready- to- install and digitally designed stone products, which can help exporters serve specification- driven projects in developed markets more efficiently than bulk block or slab shipments.
At a global level, the industrys structural challenge is trade concentration: with import demand in large markets like the United States dominated by just four or five source countries, any shift in tariffs, shipping costs or bilateral trade relations can disproportionately affect global supply chains. Quarry regulation, energy- intensive cutting and polishing processes, and rising environmental compliance costs are common pressures across producing nations, while competition from engineered quartz and porcelain slabs is steadily eating into standardised, cost- sensitive application segments worldwide, particularly in markets where uniformity and large- volume consistency matter more than natural variation.
India remains an important participant in the global natural stone value chain, supported by extensive stone reserves, established quarrying and processing clusters and capabilities across granite, marble, sandstone, limestone, slate and other dimensional stones. The Indian natural stone market was valued at approximately US$751.5 million in 2025 and is projected to reach US$1,320.8 million by 2033, registering a CAGR of 7.4% during 2026-2033. Granite remained the largest revenue- generating product segment in 2025, while marble is expected to record the fastest growth over the forecast period.
Industry growth is being supported by sustained residential and commercial construction, infrastructure development, renovation activity and increasing demand for natural materials in flooring, facades, countertops and architectural applications. Indias established processing ecosystem, skilled workforce and access to a diverse range of stone varieties further strengthen its ability to address both domestic demand and international market requirements. Based on comparable 2025 estimates, India represented approximately 7.1% of the global natural stone market, highlighting its relevance within the broader industry landscape.
Looking ahead, several structural tailwinds are likely to support continued expansion in the sector. Rapid urbanisation, sustained investment in physical infrastructure, and the steady growth of the premium real estate segment are together expected to keep demand for natural stone products buoyant over the medium term. Alongside this, a discernible shift in consumer taste toward design- led renovation and higher- quality surfacing materials is opening new avenues for value- added, aesthetically differentiated stone products, moving the industry gradually up the value chain.
This opportunity landscape is further reinforced by Indias inherent structural strengths. A well- entrenched processing base, a skilled and experienced stoneworking workforce built up over generations, and improving domestic awareness around quality and finish are collectively positioning Indian players to capture a larger share of both local and export demand. As these capabilities mature, the industry is likely to see incremental improvements in product quality, pricing power and overall competitiveness on the global stage.
That said, the industrys growth path is not without its share of headwinds. Navigating environmental approvals and quarry- related regulatory requirements remains an ongoing operational challenge, often influencing project timelines and cost structures for stone producers. Logistics and freight costs, which form a meaningful part of the overall cost base for a heavy, bulk- transported product like natural stone, continue to be a source of margin pressure, particularly in a volatile fuel- price environment.
Price volatility in raw material and finished stone segments adds a further layer of unpredictability for businesses planning capacity expansion or long- term contracts. At the same time, the industry faces gradually intensifying competition from engineered and composite materials, which are increasingly being adopted in standardized, cost- sensitive applications where natural stone was traditionally the default choice.
Finally, given the meaningful export orientation of several Indian stone producers, businesses with significant overseas exposure remain sensitive to shifts in global demand patterns, currency movements and evolving trade regulations in key destination markets are factors that require continuous monitoring and adaptive strategy on the part of industry participants.
Indias countertop industry is growing at a considerably faster pace than the global average, driven by rapid urbanisation, rising disposable incomes and a boom in organised housing and interior design. Grand View Research valued the Indian countertops market at USD 12,846.9 million in 2025, with expectations of reaching USD 25,071.0 million by 2033, translating into a CAGR of 8.7% 8.7% between 2025 and 2033 - nearly double the pace projected for the global countertop market. This growth is closely intertwined with the expansion of modular kitchens across Indian households, with the modular kitchen segment itself valued between USD 3.62 billion and USD 6.17 billion in 2025 depending on methodology, and growing at CAGR ranging from roughly 3% 3% to over 12% 12% through the early 2030s as brand- led, organised retail formats gain share over unorganised carpentry- based kitchens.
Bathroom applications form another important growth pillar, with the India bathroom countertop segment valued at USD 1.35 billion in 2025 and expected to reach USD 2.0 billion by 2030, growing at a CAGR of 7.5% 7.5% . Countertops, within the broader modular kitchen product mix, have also been identified as the fastest- growing product category, ahead of cabinets and accessories, reflecting a consumer shift toward premium, durable and design- forward surfacing choices in both kitchens and bathrooms.
Growth is being propelled by rising urban housing completions, a shift from unorganised carpenters to branded modular kitchen and countertop players, and growing consumer preference for engineered quartz and premium granite over conventional cement or laminate surfaces. North India currently leads countertop and modular kitchen demand with roughly a 31- 32% share, while tier- 2 and tier- 3 cities, along with East India, are emerging as the fastest- growing regional pockets as branded players expand distribution beyond metro markets. Residential demand continues to dominate, accounting for close to 78- 79% of modular kitchen and countertop- linked spending, supported by nuclear family formation, rising real estate completions and growing willingness to invest in kitchen and bathroom upgrades during both new construction and renovation cycles.
The Indian countertop industry continues to grapple with a highly fragmented, unorganised base of local fabricators that compete aggressively on price, making it difficult for organised, quality- certified players to scale margins quickly. Raw material cost volatility for quartz aggregates, resins and granite, coupled with regional disparities in skilled installation capacity, also affects consistency of supply and finish quality across Indias diverse geographic markets. Additionally, affordability remains a constraint in Indias price- sensitive mass housing segment, meaning that the pace of premiumisation will depend on the industrys ability to offer durable, aesthetically appealing surfaces at accessible price points while still meeting rising expectations around safety, certification and after- sales service.
Global Surfaces Limited is a leading manufacturer and exporter of engineered quartz and natural stone products. With manufacturing facilities in Jaipur and Dubai, the Company serves residential, commercial and architectural applications across domestic and international markets. Its product portfolio combines manufacturing scale, design capability and advanced surface technologies.
During FY26, consolidated revenue increased by 12.3% 12.3% to INR 2,332 million. Profitability was affected by uncertainty relating to United States tariffs, higher input costs and operational disruption arising from the regional geopolitical environment. Despite these pressures, the Company maintained financial discipline.
The Dubai facility continued to improve its utilisation during the year while the Company strengthened its presence across MENA, Canada and the domestic market. Going forward, Global Surfaces remains focused on improving capacity utilisation, expanding its premium product portfolio, diversifying its geographic presence and restoring sustainable profitability.
The Companys financial statements for FY26 have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed by the Ministry of Corporate Affairs under the Companies Act, 2013, ensuring transparent and comparable reporting across periods and alignment with global disclosure practices. Total assets stood at INR 5,407 million at FY26- end, with net worth of INR 2,709 million, a base that has absorbed two consecutive years of net losses without erosion from panic- driven decisions.
Backed by a diversified geographic footprint, a scalable dual- shore capacity base, and a demonstrated willingness to change course inside a difficult year rather than after it, Global Surfaces enters FY27 with more built capacity - physical, financial and strategic than it had going into FY26.
Standalone Financial Summary:
| Particulars | Year ended March 31, 2026 | Year ended March 31, 2025 |
| Revenue from Operations | 748.36 | 1,419.12 |
| EBITDA | (113.37) | 19.29 |
| Interest and Financial Charges | 35.68 | 45.40 |
| Tax expenses | 88.29 | 40.45 |
| Net Profit | 76.12 | 78.33 |
Consolidated Financial Summary:
| Particulars | Year ended March 31, 2026 | Year ended March 31, 2025 |
| Revenue from Operations | 2,332.39 | 2,076.44 |
| EBITDA | (127.31) | (4.51) |
| Interest and Financial Charges | 149.95 | 154.39 |
| Tax expenses | 88.37 | 39.72 |
| Net Profit | (318.39) | (289.00) |
Key Financial Ratios:
| Ratios | 2025-26 | 2024-25 |
| Debtors Turnover (Days) | 175.35 | 208.78 |
| Inventory Turnover (Days) | 142.54 | 150.74 |
| Debt Coverage Ratio (Times) | 0.03 | 0.20 |
| Current Ratio (Times) | 1.27 | 1.58 |
| Debt Equity Ratio (Times) | 0.80 | 0.66 |
| Operating Profit Margin (%) | -11.38% | -4.94% |
| Net Profit Margin (%) | -14.07% | -13.72% |
| Return on average Net Worth (%) | 11.42% | 8.95% |
The Company maintains an internal control framework designed to safeguard assets, ensure accuracy of accounting records, and secure compliance with applicable laws, calibrated to the scale and complexity of its dual- shore operations across Jaipur (SEZ) and Dubai (FZE). During FY26, this framework was strengthened through a mid- year reconstitution of the Board via shareholder postal ballot, bringing in a new Independent Director with a finance background specifically to chair the Audit Committee.
A broader set of governance strengthening initiatives completed during FY26, including enhanced Board and Committee documentation, a reviewed Corporate Governance Report under SEBI LODR, a subsidiary governance framework spanning the India- Dubai- US entity structure, and a dedicated enterprise risk review covering US tariff exposure and overseas operations.
Related Party Transaction governance, Regulation 30 disclosure processes, and Secretarial Audit procedures were also reviewed and strengthened during the year, alongside
governance documentation supporting the Dubai equity conversion and restructuring and the Bagru units planned strategic restructuring. Together, these measures reflect an internal control environment that was not merely maintained but actively adapted in response to the specific pressures tariff shocks, regional disruption, and cross- border structural changes that defined FY26.
Global Surfaces Limited operates in a business environment subject to a range of risks that could affect its operational and financial performance. The Company has established a structured risk management framework to identify, assess, and mitigate potential business, operational, financial, and compliance- related risks in a timely and effective manner.
Market and Economic Risk: Fluctuations in global demand, changes in international trade policy, tariffs, and macroeconomic conditions in key export markets could impact revenue and profitability. The Company seeks to mitigate this through geographic diversification and continuous monitoring of market trends.
1 Input Cost and Currency Risk: Volatility in raw material prices and foreign exchange fluctuations, given the Companys export- oriented and multi- geography operations, may affect margins. Cost optimisation measures and prudent financial management are employed to manage this exposure.
Operational Risk: Disruptions to manufacturing operations, whether from supply chain constraints, geopolitical developments, or other unforeseen events, could affect production continuity. The Company maintains business continuity practices and operational flexibility across its manufacturing facilities to address such contingencies.
Regulatory and Compliance Risk: Changes in environmental, safety, trade, and other regulatory requirements across the jurisdictions in which the Company operates could necessitate adaptation of products, processes, or disclosures. The Company monitors regulatory developments closely and adjusts its practices to maintain compliance.
Competition Risk: The surfaces and building materials industry is competitive, with both established and emerging players. The Companys focus on product innovation, quality, and customer relationships is intended to sustain its competitive position.
Credit and Liquidity Risk: Risks relating to customer creditworthiness and working capital management are managed through structured credit policies and active monitoring of receivables and cash flows.
The Audit Committee and the Board periodically review these risk areas, along with emerging risks, and oversee the implementation of appropriate mitigation measures. Through this ongoing process of risk identification, assessment, and response, the Company aims to safeguard business continuity and support sustainable long- term growth.
Global Surfaces Limited was supported by a workforce of more than 550 people as at 31 March 2026. During the
year, the Company focused on manpower training, safety awareness and practical skill development aligned with operational requirements. Training initiatives and in house line modifications supported improvements in productivity, process discipline and quality. The Company continued to maintain constructive employee relations across its operations and acknowledges the commitment of its workforce in sustaining business continuity during a challenging year.
The Company continued to strengthen the use of technology across its manufacturing and business processes. Its technology framework includes SAP ERP, CNC automation, rubber mould press technology and advanced machinery from BRETON and KEDA. These systems support better process control, production consistency, operational efficiency and timely availability of information. The Company remains focused on expanding automation and digital integration to improve traceability, resource utilisation and management decision making.
Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material cost and availability, changes in Government regulations, tax regimes, economic developments within India and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revise any forward- looking statements on the basis of any subsequent developments, information or events.
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