PRSMJOHNSN - Prism Johnson

📊 NSE: PRSMJOHNSN 🏢 Cement - North India 📅 Last Updated: 12/14/2025 11:17

💰 Financial Performance

Revenue Growth by Segment

Consolidated net sales for H1 FY26 reached INR 3,722.12 Cr, growing 11.2% YoY from INR 3,345.89 Cr. Segment-wise, Prism RMC EBITDA margins improved from 2.7% to 5.8% in FY25, while HRJ margins remained flattish at 5.8%. Cement EBITDA per tonne declined 26.9% to INR 351 in FY25 due to lower realizations.

Profitability Margins

Net Profit Margin decreased from 2.2% in FY24 to 0.6% in FY25. Operating Profit Margin was 5.8% in FY25, down from 6.7% in FY24. H1 FY26 Net Profit was INR 102 Cr, a 46.3% decline from INR 190 Cr in H1 FY25, primarily due to the absence of high exceptional gains seen in the previous year.

EBITDA Margin

Consolidated EBITDA margin contracted by 90 basis points to 5.7% in FY25 from 6.6% in FY24. The company expects EBITDA margins to improve to 7-8% in FY26 driven by cost reductions in the cement division and modernization in the tiles division.

Capital Expenditure

The company plans to incur a large annual capital expenditure of approximately INR 500 Cr over the medium term towards cost rationalization and modernization activities.

Credit Rating & Borrowing

CRISIL Ratings maintained a healthy financial risk profile with net debt to EBITDA improving to 2.4 times in FY25 from 2.9 times in FY24. Finance costs for Q2 FY26 were INR 44.22 Cr, representing 2.4% of total income.

⚙️ Operational Drivers

Raw Materials

Limestone, clay, feldspar, gypsum, and aggregates. Cost of materials consumed in Q2 FY26 was INR 473.21 Cr, representing 25.4% of total income.

Capacity Expansion

Modernization of kiln activities at HRJ units was largely completed in H1 FY25. The company is also scaling up an asset-light franchise model for the RMC segment to increase market reach without heavy capital investment.

Raw Material Costs

Raw material costs increased slightly by 0.8% YoY to INR 473.21 Cr in Q2 FY26. Procurement strategies focus on long-term supply stability for limestone and clay.

Manufacturing Efficiency

Modernization of kilns is expected to improve operational efficiencies and margins from FY27 onwards as utilization levels increase post-capex completion.

Logistics & Distribution

Freight outward costs in Q2 FY26 were INR 199.55 Cr, accounting for 10.7% of total income, a 17.4% decrease from INR 241.53 Cr in Q2 FY25.

📈 Strategic Growth

Expected Growth Rate

11.20%

Growth Strategy

Growth will be achieved through the completion of modernization at HRJ tile units to improve efficiency, expanding the RMC segment via an asset-light franchise model, and reducing costs in the cement division through green energy investments and waste heat recovery systems.

Products & Services

Cement bags, ceramic and vitrified tiles, ready-mixed concrete (RMC), and general insurance policies through the Raheja QBE JV.

Brand Portfolio

Prism Cement, H & R Johnson (HRJ), Prism RMC.

Market Expansion

Targeting increased domestic market share in tiles to offset moderated export demand.

Strategic Alliances

Raheja QBE General Insurance Company Ltd (Joint Venture).

🌍 External Factors

Industry Trends

The industry is shifting toward green energy and cost-efficient manufacturing. Prism Johnson is positioning itself by investing in green power and modernizing aging plants to lower fixed costs.

Competitive Landscape

Faces intense competition in the cement and tiles sectors from both large organized players and regional unorganized manufacturers.

Competitive Moat

The H & R Johnson brand provides a strong competitive advantage in the tiles segment. Cost leadership is being pursued through the modernization of kilns and the use of alternative fuels in cement production.