Revenue and Operating Performance Trends
Global Surfaces’ net sales demonstrated a mixed pattern over the last four fiscal years. After a rise from ₹178.07 crores in March 2023 to ₹225.29 crores in March 2024, sales declined to ₹207.64 crores by March 2025. This dip reflects a contraction of approximately 7.8% year-on-year, signalling potential market or operational headwinds. Total operating income mirrored this trend, as other operating income remained nil throughout the period.
Cost structures have evolved notably. Raw material costs increased from ₹85.26 crores in 2023 to ₹108.14 crores in 2025, while purchases of finished goods spiked sharply in 2024 before normalising. Employee costs more than doubled from ₹11.94 crores in 2023 to ₹28.99 crores in 2025, indicating either workforce expansion or wage inflation pressures. Other expenses also rose steadily, reaching ₹75.56 crores in the latest fiscal year.
Operating profit before other income (PBDIT excl OI) declined dramatically from ₹35.52 crores in 2023 to a marginal ₹1.93 crores in 2025, reflecting a sharp squeeze on operational efficiency. However, other income improved, contributing ₹7.24 crores in 2025, which helped the overall operating profit (PBDIT) to ₹9.17 crores, down from ₹38.69 crores in 2024.
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Profitability and Margins
Despite operational income, profitability has faced significant challenges. Interest expenses surged from ₹3.57 crores in 2023 to ₹15.44 crores in 2025, severely impacting gross profit before depreciation and tax (PBDT), which turned negative at ₹-6.27 crores in 2025 compared to positive figures in prior years. Depreciation also doubled, reaching ₹18.66 crores, further eroding earnings.
Consequently, profit before tax swung from a healthy ₹25.29 crores in 2023 to a loss of ₹24.93 crores in 2025. After accounting for taxes, the company reported a consolidated net loss of ₹28.54 crores in 2025, a stark contrast to profits exceeding ₹18 crores in the previous year. Earnings per share reflected this downturn, falling from ₹5.72 in 2023 to a negative ₹6.73 in 2025.
Margins have compressed considerably. Operating profit margin excluding other income plummeted from nearly 20% in 2023 to under 1% in 2025, while the PAT margin turned negative at nearly -14%. These figures highlight the pressing need for cost control and revenue stabilisation to restore profitability.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds increased steadily from ₹134.03 crores in 2022 to ₹302.34 crores in 2025, supported by equity capital growth and reserves accumulation. However, total liabilities also expanded significantly, reaching ₹537.64 crores in 2025, more than doubling since 2022. This rise was driven by increased long-term borrowings and short-term debt, which climbed to ₹152.10 crores and ₹99.80 crores respectively in 2025.
Asset base growth was notable, with total assets rising from ₹218.45 crores in 2022 to ₹537.64 crores in 2025. The company’s gross block of fixed assets expanded substantially, reflecting capital investments, although accumulated depreciation also increased. Net block assets stood at ₹237.70 crores in 2025, indicating a sizeable asset base to support operations.
Current assets grew to ₹242.06 crores in 2025, with inventories and sundry debtors increasing, signalling higher working capital requirements. Net current assets remained positive but declined from previous years, suggesting tighter liquidity management may be necessary.
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Cash Flow and Liquidity
Cash flow trends reveal operational strain in recent years. Cash flow from operating activities turned negative in 2024 and 2025, with outflows of ₹37 crores and ₹31 crores respectively, compared to positive inflows in earlier years. Investing activities showed a large outflow in 2023 due to capital expenditure, while financing activities provided inflows, particularly in 2023 and 2025, reflecting debt raising efforts.
Net cash inflow/outflow remained close to neutral in 2025, with closing cash and cash equivalents stable at ₹2 crores. However, the decline in operating cash flow underscores the importance of improving core business cash generation to sustain financial health.
Overall, Global Surfaces has faced a challenging period marked by revenue volatility, margin compression, and increased leverage. While the company has invested in assets and expanded its balance sheet, profitability and cash flow pressures highlight the need for strategic focus to regain growth momentum and financial stability.
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