Prism Johnson Ltd Q1 FY26 (Jun ’25) – ₹1,922 Cr Sales, ₹2.2 Cr PAT, ROCE 2.2%, and Cement-Tiles-RMC Buffet with Spicy Debt Masala
1. At a Glance
Prism Johnson turned over ₹1,922 Cr sales this quarter (+9% YoY) and somehow squeezed out ₹2.2 Cr profit after tax. A company with cement kilns, tile factories, 91 RMC plants, and bath fittings empire made less profit than a mid-sized mithai shop in Diwali season. ROE at -4% and ROCE at 2.2%? Even your savings account gives better returns.
2. Introduction
If the Indian building materials industry was a thali, Prism Johnson is the overloaded plate – cement, tiles, sanitaryware, bath fittings, ready-mix concrete, and even a flirtation with insurance JV. Incorporated in 1992, it’s now a three-decade-old player sitting awkwardly between legacy giants (UltraTech, ACC, Shree) and ambitious niche brands (Kajaria, Somany).
Their revenue split is as colorful as a Holi party: Cement 44%, Tiles/Sanitary 35%, and Ready-Mix Concrete 21%. That’s right – they don’t want to be known just as a cement wall, they want to be the full bathroom experience too.
On paper, Prism Johnson looks formidable: 7.8 MTPA cement capacity, 61 million m² tile capacity, 91 RMC plants, distribution reaching 10,000+ outlets. Yet, profitability looks like a failed IIT JEE attempt – lots of effort, little output. FY25 ended with ₹7,530 Cr sales but a loss of ₹16 Cr. With interest costs above ₹200 Cr annually, this is basically a cement factory moonlighting as an EMI payer.
And the share price? ₹168, which is about 15 times cheaper than UltraTech but still trades at 5.7× book value. Investors seem to think of it as that relative who talks big at weddings but borrows money for petrol.
3. Business Model – WTF Do They Even Do?
Prism Johnson is a conglomerate of building materials, trying to be everything for everyone:
Cement Division (44% of sales): 7.8 MTPA capacity at Satna cluster, with grinding units in UP/Bihar. Brands like Champion, Duratech, and All Weather – names sound like WWE wrestlers but are actually bags of cement.
H&R Johnson (35%): Tiles, sanitaryware, faucets, quartz. Basically, your bathroom showroom fantasies. With 10 tile plants and 2 faucet factories, they want to be Kajaria meets Cera meets Asian Granito.
RMC (21%): Among top 3 in India with 91 plants, Prism mixes your concrete fresh and delivers – like Swiggy, but for cement.
Insurance JV (RQBE): They tried to sell their Raheja QBE stake to Paytm, but the deal collapsed. So, Prism ended up buying more shares instead – because who doesn’t want an insurance business while running kilns?
So what is Prism Johnson? It’s like a buffet restaurant – too many dishes, half-cooked, and the customer still complains about indigestion.
4. Financials Overview
Metric
Latest Qtr (Jun ’25)
YoY Qtr (Jun ’24)
Prev Qtr (Mar ’25)
YoY %
QoQ %
Revenue
1,922
1,763
2,102
9.0%
-8.6%
EBITDA
168.4
132.2
187.5
27.4%
-10.2%
PAT
2.19
-18.3
121.0
NA
-98.2%
EPS (₹)
0.05
-0.15
2.57
NA
-98.1%
Annualised EPS = 0.05 × 4 = ₹0.20. At CMP ₹168 → P/E not meaningful.
Commentary: Revenue is fine, EBITDA improved YoY, but PAT crashed QoQ. In Q4 FY25, they had ₹121 Cr profit; in Q1 FY26, just ₹2 Cr. Clearly, other income and tax refunds saved last year. Without freebies, Prism struggles to shine.
👉 Question: Would you trust a cement company whose annual profits fluctuate like petrol prices?
5. Valuation Discussion – Fair Value Range
a) P/E Method
EPS annualised = ₹0.20. Meaningless. Even at 100x P/E, it’s just ₹20.
b) EV/EBITDA
EBITDA FY25 = ~₹455 Cr. EV = ₹9,942 Cr. EV/EBITDA = 21.8× vs industry ~12–16×. Fair value EV range = ₹5,500–₹7,300 Cr → per share ₹95–₹125.
c) DCF (Damp Cement Forecast)
Assume 5% revenue CAGR, 8% margin recovery, WACC 12%. Range spits out ₹100–₹140.
👉 Fair Value Range: ₹95 – ₹140.
Disclaimer: For educational purposes only. Don’t build houses based on this analysis.
6. What’s Cooking – News, Triggers, Drama
Insurance Saga: Tried to sell Raheja QBE stake to Paytm. Deal failed. Prism bought more instead. Cement company holding insurance – sounds like Ambuja trying to sell iPhones.
Tile Expansion: Added 1.2 mn m² in Morbi, working on 5.5 mn m² in Panagarh. Tile wars with Kajaria, Somany continue.
Wind Power Project Terminated: Planned 24 MW captive wind plant scrapped due to ReNew Energy breach. Guess they’ll stick to coal dust for now.
Acquisitions: Picked up more stake in Sentini (bath fittings) in Aug 2025, now 90% owned. Because why not add another bathroom brand?
Tax Refunds: Got ₹128 Cr refund in Jan 2025. Indian corporates love tax refunds more than Diwali bonuses.
ERP Upgrade: Cement division went live on Ramco ERP. Let’s hope the ERP doesn’t eat more cash than it saves.
7. Balance Sheet
Year
Assets
Liabilities
Net Worth
Borrowings
FY21
6,166
4,236
1,930
1,930
FY22
6,448
3,924
2,524
1,744
FY23
6,547
3,861
2,686
2,182
FY24
7,081
4,335
2,746
2,243
FY25
7,309
4,548
2,753
1,978
Auditor Sarcasm: Assets grew slowly, debt still ~₹2,000 Cr. Net worth stagnant like a chai stall in lockdown. Borrowings down a bit in FY25, but with ROCE at 2%, they’re effectively paying interest for charity.
