Prism Johnson (500338) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 consolidated revenue grew 12.6% YoY, reaching ₹1,826.75 crore, driven by strong performance in Prism Cement (+22.3% YoY) and Prism RMC (+12.3% YoY), while HRJ posted a modest 2.1% YoY increase.

• EBITDA surged 224.9% YoY to ₹186 Crores, with margin expanding to 10.8%, led by improved realisations and lower operating costs, especially in Prism Cement.

• Net profit turned positive at ₹3 Crores versus a loss of ₹91 Crores in Q2 FY25, reflecting operational improvements and cost efficiencies.

• The results include the impact of exceptional items, notably a loss due to fire and gains from asset sales.

Financial highlights

• Consolidated revenue reached ₹1,966 Crores, with Prism Cement contributing 44%, HRJ 33.9%, and Prism RMC 22.1%.

• EBITDA margin improved to 10.8% from 3.7% YoY; Prism Cement EBITDA/tonne rose from ₹58 to ₹701.

• Net debt increased to ₹1,067 Crores, with Net Debt/EBITDA at 1.8x and Net Debt/Equity at 0.6x as of September 30, 2025.

• Net profit margin for the quarter was 0.09%, compared to -6.41% in the prior year quarter.

• Earnings per share for the quarter stood at ₹0.06, up from a loss per share of ₹1.78 in the same quarter last year.

Outlook and guidance

• Strong medium-term demand outlook for cement, supported by housing and infrastructure sectors, though competition is expected to intensify in Central India.

• Plans to use proceeds from potential sale of non-core assets to further reduce debt.

• Management highlighted the acquisition of additional stake in Samini Ceramics Limited, increasing shareholding from 50% to 90%, with further acquisition pending.