Prism Johnson (500338) Q4 25/26 earnings summary

Executive summary

• Achieved consolidated revenue of ₹7,404 crore in FY26, up 8.4% YoY, with EBITDA rising 52.1% YoY to ₹693 crore, reflecting strong operational performance across all business segments.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with auditors issuing unmodified opinions.

• Effective net debt reduced to ₹646 crore from ₹1,138 crore YoY, strengthening the balance sheet and supporting future growth.

• Significant non-recurring items included impairment losses, asset sales, and the classification of the insurance subsidiary as held for sale.

• Focused on financial discipline, deleveraging, and operational efficiencies amid industry consolidation, high gas costs, and trade receivable pressures.

Financial highlights

• FY26 consolidated revenue grew 8.4% YoY to ₹7,404 crore; EBITDA margin improved to 9.4% from 6.5% in FY25.

• Net profit for FY26 was ₹105 crore, up 13.4% YoY; Q4 FY26 net profit was ₹28 crore, down 79.4% YoY due to one-off items.

• Free cash flow (pre-capex and investments) was ₹738 crore in FY26, with operating FCF after financial obligations at ₹334 crore.

• Exceptional items in FY26 included a gain of ₹151.5 crore from asset monetisation, a loss of ₹39.8 crore from new labour code adoption, and impairment losses.

• Standalone revenue from operations for FY26 was ₹7,254.41 crore; consolidated revenue was ₹7,326.00 crore.

Outlook and guidance

• Stable medium-term cement demand outlook in Central India, supported by rural and infrastructure growth, though competition is expected to intensify.

• Insurance business classified as discontinued operations, with the sale of the subsidiary pending completion.

• HRJ expects a temporary slowdown in Q1 FY27 due to inventory rebuilding after Q4 disruptions, with gradual recovery anticipated.

• RMC business sees robust project pipeline and aims to enhance plant utilisation and value-added product share.

• Management continues to focus on operational efficiency and asset optimization.