PRSMJOHNSN - Prism Johnson
📢 Recent Corporate Announcements
Prism Johnson Limited has been served an order by the Commissioner of CGST & Central Excise, Jabalpur, imposing a penalty of ₹87,46,339. The penalty relates to the alleged wrong availment of Cenvat Credit of Excise Duty for a brief period in late 2013. The company has clarified that this order will not have a material impact on its financial or operational performance. Prism Johnson intends to challenge the order by filing an appeal with the relevant authorities.
- Penalty of ₹87,46,339 imposed by the Office of the Commissioner of CGST & Central Excise, Jabalpur.
- The dispute involves alleged wrong availment of Cenvat Credit during October 2013 to November 2013.
- Order passed under Rule 15 of Cenvat Credit Rules, 2004 and Section 11AC of the Central Excise Act, 1944.
- Company confirms no material impact on financials or operations and plans to file an appeal.
Prism Johnson Limited has updated its list of Key Managerial Personnel (KMP) authorized to determine the materiality of events for stock exchange disclosures. This action follows the appointment of KMPs on March 2, 2026, and complies with Regulation 30(5) of SEBI LODR. The authorized personnel include the Managing Director, CEOs of the Cement, HRJ, and RMC divisions, the CFO, and the Company Secretary. This ensures a structured process for timely and accurate reporting of significant corporate developments to investors.
- Authorization of 6 Key Managerial Personnel to determine materiality of information effective March 2, 2026.
- Includes top leadership from all three business segments: Cement, HRJ (H & R Johnson), and RMC (Ready Mixed Concrete).
- Compliance with Regulation 30(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Contact details for the Managing Director and investor relations provided for stakeholder communication.
Prism Johnson has appointed Mr. Sanjaykumar Shivajee Roy as an Additional Director and Whole-time Director, designated as Executive Director & CEO for its Ready Mix Concrete (RMC) division. Mr. Roy, who has been with the company as CEO-Designate since March 2025, brings over 33 years of experience in the construction industry. He previously served as the Chief Executive of the Concrete Business at ACC Limited (Adani Group). The appointment is effective from March 2, 2026, for a period of three years, subject to shareholder approval.
- Appointment of Mr. Sanjaykumar Shivajee Roy as Executive Director & CEO (RMC) for a 3-year term starting March 2, 2026.
- Mr. Roy has over 33 years of experience in the Ready Mix Concrete and Construction industry.
- Previous leadership roles include Chief Executive - Concrete Business at ACC Limited (Adani Group) and Head of Concrete Business at Aparna RMC.
- The appointment follows a year-long transition period where he served as CEO (RMC) – Designate since March 24, 2025.
- Shareholder approval for the appointment will be sought through a postal ballot process.
Prism Johnson has approved the sale of its entire 51% stake in its material subsidiary, Raheja QBE General Insurance (RQBE), to its joint venture partner QBE Holdings. The transaction is valued at Rs 324 crore, subject to closing adjustments and regulatory approvals from IRDAI. RQBE contributed 6.82% to the company's consolidated turnover and 17.16% to its net worth as of March 31, 2025. This move marks Prism Johnson's complete exit from the general insurance business to focus on core operations.
- Divestment of 51% stake in Raheja QBE General Insurance for a total consideration of Rs 324 crore.
- RQBE reported a revenue of Rs 498.91 crore and a net worth of Rs 253.66 crore in FY25.
- The buyer, QBE Holdings (AAP) Pty Limited, is the existing JV partner and part of the Australia-based QBE Group.
- Transaction is expected to be completed within 9 months, pending shareholder and IRDAI approvals.
- The deal will result in the termination of the existing joint venture and shareholders' agreement.
Prism Johnson has launched 'Prism Chakachak' Gypsum Plaster under its Prism Cement division to strengthen its value-added product portfolio. The new product will be distributed through the company's existing network of approximately 2,400 dealers across Uttar Pradesh, Madhya Pradesh, and Bihar. This move aims to provide integrated building solutions, complementing its existing 5.6 MTPA cement capacity and extensive tile and RMC operations. The product is designed to reduce construction time and labor costs, potentially improving market penetration in the premium building materials segment.
- Launched 'Prism Chakachak' Gypsum Plaster to expand the value-added construction materials portfolio
- Product to be distributed through an established network of approximately 2,400 dealers in Central India
- Complements existing cement capacity of 5.6 MTPA and 1.37 MTPA through grinding unit agreements
- Part of a broader strategy to offer integrated solutions across cement, tiles (64 mn m² capacity), and RMC (87 plants)
Prism Johnson Limited has announced the conclusion of GST inspection and search proceedings conducted by the Maharashtra State GST officials. The search, which took place under Section 67 of the Maharashtra GST Act, targeted several offices and a manufacturing unit in the state. The company stated that the proceedings concluded on February 12, 2026, and that they provided full cooperation to the authorities. Importantly, management has confirmed that there is currently no material impact on the company's financials or business operations.
- Inspection conducted by Deputy Commissioner of State Tax, Maharashtra, under Section 67 of the GST Act.
- Search proceedings concluded on February 12, 2026, at 6:00 p.m. across multiple offices and units.
- Company confirms no material impact on financials, business operations, or other activities.
- Prism Johnson has agreed to provide additional documents as requested by the GST Authority in due course.
Prism Johnson reported a strong recovery in Q3 FY26, with consolidated EBITDA jumping 241.4% YoY to ₹158 crore, driven by a significant turnaround in the cement business. The cement segment's EBITDA per tonne recovered to ₹458 from just ₹11 in the previous year, aided by a higher premium product mix of 57.5%. H&R Johnson also saw margin expansion to 8.0% due to lower input costs and plant modernization. The company successfully reduced its effective net debt to ₹964 crore from ₹1,138 crore in March 2025.
- Consolidated revenue grew 5.9% YoY to ₹1,759 crore, while EBITDA margins expanded from 2.8% to 9.0%.
- Cement EBITDA per tonne surged to ₹458 from ₹11 YoY, supported by a 57.5% premium product mix.
- H&R Johnson's EBITDA margin improved by 290 bps YoY to 8.0% despite flat tile sales volumes.
- Effective net debt decreased by ₹174 crore since March 2025, with Net Debt/TTM EBITDA improving to 1.1x.
- Prism RMC EBITDA margin rose to 7.2% in 9M FY26 from 5.6% in 9M FY25.
Prism Johnson reported a standalone net profit of ₹77.25 crore for Q3 FY26, up from ₹47.67 crore YoY, largely driven by a ₹151.46 crore gain from selling its Mumbai office premises. Revenue from operations grew 6.3% YoY to ₹1,734.92 crore, with the Cement segment showing a significant turnaround in EBIT. Despite the bottom-line boost, the company recorded a loss of ₹9.25 crore before exceptional items and tax, though this is an improvement from the ₹31.59 crore loss in the previous year. A one-time provision of ₹39.05 crore was also made for new Labour Code compliance.
- Standalone Revenue from operations increased 6.3% YoY to ₹1,734.92 crore for the quarter.
- Net Profit of ₹77.25 crore includes an exceptional gain of ₹151.46 crore from asset sales, offset by ₹39.05 crore in labor code provisions.
- Cement segment EBIT turned positive at ₹17.21 crore versus a loss of ₹59.59 crore in Q3 FY25.
- Operating Margin improved significantly to 8.48% compared to 2.31% in the corresponding quarter last year.
- Total outstanding debt stood at ₹1,195.72 crore with a Debt-Equity ratio of 0.75 as of December 31, 2025.
Maharashtra State GST officials initiated an inspection and search proceeding at Prism Johnson's offices and manufacturing unit on January 30, 2026. The action was taken under Section 67 of the Maharashtra Goods and Services Tax Act, 2017, with officials arriving around 11:30 a.m. While the search is currently underway, the company has stated there is no immediate material impact on its financial or business operations. Investors should monitor for further disclosures regarding any potential tax demands or penalties that may arise from this proceeding.
- Inspection initiated by the Deputy Commissioner of State Tax, Maharashtra, on January 30, 2026
- Proceedings conducted under Section 67 of the Maharashtra Goods and Services Tax Act, 2017
- Search covers multiple company offices and a manufacturing unit within the State of Maharashtra
- Company reports no current material impact on business operations or financial performance
- Prism Johnson is extending full cooperation to the GST officials during the ongoing process
Prism Johnson Limited has received a notice from the High Court of Madhya Pradesh regarding an appeal filed by the tax department. The appeal challenges a previous CESTAT order that had set aside a tax demand of Rs 34.10 crores, including a penalty of Rs 26.40 crores. While the tribunal had earlier ruled the demand as time-barred, the tax authorities are now contesting this in the High Court. The company expects a favorable outcome and does not anticipate a material financial impact at this stage.
- High Court of Madhya Pradesh admitted an appeal against the CESTAT order dated January 10, 2025
- The dispute involves a Service Tax and Excise Duty demand totaling Rs 34.10 crores
- The demand includes a significant penalty component of Rs 26.40 crores against the company and employees
- CESTAT had previously set aside the entire demand on the grounds of being time-barred
- The High Court hearing for the appeal is scheduled for February 23, 2026
Prism Johnson Limited has designated Mr. Anil Madlani, Senior Vice President – Morbi Operations, as Senior Management Personnel effective January 1, 2026. He succeeds Mr. Rajshekhar Shettar, who retired on December 31, 2025, upon reaching the age of superannuation. Mr. Madlani is a seasoned professional with over 29 years of experience in the cement and building materials industry. Notably, he previously managed an annual procurement spend of approximately ₹1,800 crore at Orient Cement, highlighting his expertise in large-scale operations.
- Mr. Anil Madlani designated as Senior Management Personnel effective January 1, 2026
- Succession follows the retirement of Mr. Rajshekhar Shettar on December 31, 2025
- Mr. Madlani brings 29 years of industry experience from firms like L&T Cement and Orient Cement
- New appointee previously oversaw annual procurement spends of approximately ₹1,800 crore
Prism Johnson Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI insider trading regulations. This closure is ahead of the declaration of the unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain shut until 48 hours after the financial results are officially announced to the exchanges. This is a standard regulatory procedure for all listed Indian companies to prevent insider trading during sensitive periods.
- Trading window closure effective from January 1, 2026.
- Closure pertains to the unaudited financial results for the quarter and nine months ended December 31, 2025.
- Window will reopen 48 hours after the results are declared.
- Complies with SEBI (Prohibition of Insider Trading) Regulations, 2015.
Prism Johnson Limited has responded to a clarification request from the National Stock Exchange regarding a significant increase in its trading volume. The company stated that there is no undisclosed price-sensitive information or impending announcements that could have triggered the surge. Management attributes the increased activity to prevailing market conditions rather than any internal developments. The company reaffirmed its commitment to making all necessary disclosures under SEBI Regulation 30.
- NSE issued a surveillance query on December 23, 2025, regarding a spurt in trading volume.
- Company confirmed no material information or events remain undisclosed to the exchanges.
- Management attributed the significant volume increase solely to prevailing market conditions.
- The company remains in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Prism Johnson Limited has announced the sale of its office premises located in Kalina, Mumbai, for a total consideration of Rs 165.91 Crores. The buyer, Windsor Realty Private Limited, is a related party involving Director Mr. Akshay Raheja, but the company has stated the transaction is at arm's length. The sale includes the 7th-floor office space, terrace area, and car parking on an 'as is where is' basis. The transaction is expected to be completed by December 31, 2025, providing a significant cash inflow to the company.
- Sale of Mumbai office premises for a total consideration of Rs 165.91 Crores
- Buyer is Windsor Realty Private Limited, a related party to the company's directors
- Transaction is confirmed to be conducted at arm's length and approved by the Board
- Expected completion date for the execution of the Sale Deed is December 31, 2025
- Asset monetization includes office space, terrace area, and designated car parking
Prism Johnson Limited has announced its participation in an investor conference organized by Phillip Capital scheduled for December 19, 2025. The event will take place physically in Mumbai and will involve both one-on-one and group meetings with institutional investors. The company has explicitly stated that no unpublished price sensitive information will be shared during these interactions. This is a standard regulatory disclosure under SEBI's Listing Obligations and Disclosure Requirements.
- Investor conference scheduled for Friday, December 19, 2025, in Mumbai.
- Organized by Phillip Capital featuring 1x1 and group meeting formats.
- Disclosure made under Regulation 30 of SEBI (LODR) Regulations, 2015.
- Company confirms no unpublished price sensitive information (UPSI) will be disclosed.
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.
Macro Economic Sensitivity
Highly sensitive to fuel price inflation (coal and gas) and infrastructure spending cycles in India.
Consumer Behavior
Increasing preference for branded tiles and ready-to-use concrete solutions in urban construction.
Geopolitical Risks
Moderation in export demand has led to increased competition in the domestic tile market, impacting HRJ's pricing strategy.
Regulatory & Governance
Industry Regulations
Operations are subject to mining lease regulations for limestone and environmental pollution norms for cement and tile manufacturing.
Environmental Compliance
Ongoing investments in green energy and waste heat recovery to comply with tightening emission norms and reduce carbon footprint.
Taxation Policy Impact
The company received a favorable order from the ITAT resulting in additional interest income of INR 82 Cr in FY25.
Legal Contingencies
Pending Service Tax demand of INR 22.57 Cr including penalties. The company has filed a Rectification of Mistake Application regarding this demand.
Risk Analysis
Key Uncertainties
Volatility in fuel prices (gas/coal) and fluctuations in cement demand and realizations pose significant risks to margin stability.
Third Party Dependencies
Dependency on gas suppliers for tile manufacturing and coal/power utilities for cement production.
Technology Obsolescence Risk
Aging plants in the cement division lead to higher fixed costs; modernization is critical to maintaining competitiveness.
Credit & Counterparty Risk
Receivables quality is monitored as debtors increased to INR 840 Cr in FY25, with debtor days rising to 41.9.