Prism Johnson (500338) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue grew year-over-year to ₹1,921.75 crore, driven by strong cement segment performance, though tiles and RMC segments showed mixed results.

• EBITDA increased 12.6% year-over-year to ₹174 crore, with margin expanding to 9.7% due to improved cement profitability.

• Net profit declined sharply to ₹2 crore from ₹6 crore in Q1 FY25, while net loss after tax and non-controlling interest was ₹(8.10) crore, reflecting higher costs and exceptional items.

• Exceptional items included a minor fire loss and asset sale gains, with a net positive impact of ₹0.50 crore.

Financial highlights

• Prism Cement revenue rose 18.1% year-over-year to ₹914 crore, with sales volume up 18.5% and premium product share increasing to 46%.

• HRJ revenue grew 1.4% year-over-year to ₹546 crore; domestic tile sales volume up 7.7%, but export volume fell 61.1%.

• Prism RMC revenue declined 4.9% year-over-year to ₹336 crore, with sales volume down 22.2% due to completion of mega projects.

• Consolidated EBITDA margin improved to 9.7%; Prism Cement EBITDA/tonne rose to ₹708, driven by lower power and fuel costs.

• EBITDA margin for Q1 FY26 was 8.89%, and net profit margin was -0.29%.

Outlook and guidance

• Medium-term cement demand outlook remains strong, supported by housing and infrastructure sectors.

• Upcoming capacity additions in Central India expected to intensify competition, but healthy demand growth anticipated.

• Management expects to resolve the dispute with ReNew Green (MPR Two) Private Limited through arbitration.