Prism Johnson Ltd.'s commercial paper rating reaffirmed 'Crisil A1+'

Prism Johnson Limited announced on September 03, 2025, that Crisil Ratings Limited has reaffirmed its ‘Crisil A1+’ rating for the company’s commercial paper programme of Rs. 200 Crore. The rating reflects a healthy business risk profile, supported by the company's strong position as a cement player in the central region, its established presence in the ceramic and vitrified tiles industry, and its role as a leading player in the ready-mix concrete (RMC) business.

Despite a decline in operating profits in fiscal 2025, cash accruals were bolstered by the sale of industrial land, generating a post-tax exceptional gain of Rs. 149 crore, and favorable Income Tax Appellate Tribunal rulings, which contributed Rs. 82 crore in interest income. These one-off receipts reduced net debt to Rs. 1,106 crore as of March 31, 2025, improving the consolidated net debt to EBITDA ratio to 2.4x from 2.9x in fiscal 2024.

Crisil Ratings anticipates a consolidated EBITDA margin improvement to 8-9% in fiscal 2026, driven by pricing and cost reductions in the cement division. The company's liquidity remains strong, with cash and equivalents of approximately Rs. 474 crore as of March 31, 2025, which will be used for debt reduction and capital expenditure.