Global Surfaces Limited's Credit Ratings Downgraded by Acuité

Global Surfaces Limited (GSL) has announced a downgrade in its credit ratings by Acuité Ratings & Research Limited. The long-term bank loan facilities rating has been reduced to ACUITE BBB- Negative from ACUITE BBB+ Negative, and the short-term bank loan facilities rating has been downgraded to ACUITE A3+ from ACUITE A2.

The downgrade is attributed to a moderation in the Group's operating performance, a weakening financial risk profile, and a stretched liquidity position. While revenue increased to ₹233.24 crore in FY26 from ₹207.64 crore in FY25, driven by the Dubai facility's ramp-up, Indian operations saw a decline due to US trade policy uncertainties and slower customer off-take. The Group reported net losses in FY26, impacting its net worth which declined to ₹270.78 crore as of March 31, 2026, from ₹303.80 crore a year prior. Gearing deteriorated to 0.79 times from 0.66 times, with weak debt protection metrics including an interest coverage ratio of 0.69 times and a DSCR of 0.04 times in FY26.

Acuité highlighted that the Group's ability to improve its scale of operations, profitability, and debt protection metrics remains a key monitorable, especially given sub-unity coverage indicators. The rating is further constrained by intensive working capital requirements and a stretched liquidity position. The negative outlook reflects uncertainty in achieving sustained improvement in profitability, cash accruals, debt protection metrics, and liquidity. While the Group achieved break-even at the PAT level in Q1FY27, its sustainability is a monitorable. Geopolitical uncertainties in the Gulf region could also impact demand and costs.