Crisil Ratings has reaffirmed the ‘Crisil A1+’ rating on Prism Johnson Limited’s commercial paper programme. This rating reflects the company’s healthy business risk profile, robust financial standing, and strong liquidity. The reaffirmation, dated August 26, 2026, signifies continued confidence in Prism Johnson’s creditworthiness amidst a dynamic industry landscape.
Credit Rating Reaffirmed
Crisil Ratings has announced the reaffirmation of its credit rating for the commercial paper programme of Prism Johnson Limited (PJL). The rating stands at ‘Crisil A1+’, indicating a very strong degree of safety regarding the timely servicing of financial obligations. This reaffirmation, effective August 26, 2026, underscores PJL’s consistent financial performance and credit management.
Key Strengths Supporting the Rating
The rating rationale highlights several key strengths for Prism Johnson:
- A prominent position in the cement sector, particularly in the central region, with an established presence in the domestic ceramic and vitrified tiles industry, and leadership in the ready-mix concrete (RMC) business.
- Structural improvements in manufacturing plants leading to enhanced operational efficiency across Cement, HRJ, and RMC divisions.
- A strong liquidity position and financial risk profile, supported by healthy accruals, controlled capital expenditure, and proceeds from divestment of non-core assets.
Financial Performance and Outlook
The company has demonstrated improvements in its financial metrics. Consolidated EBITDA margin improved to 9.5% in fiscal 2026 from 6.8% in the previous fiscal. Crisil Ratings expects the EBITDA margin to sustain above 9% for fiscal 2027, driven by operating efficiencies and price adjustments. The financial risk profile has been further strengthened by the sale of assets, leading to a significant reduction in the net debt to EBITDA ratio, which improved to 1.2x in fiscal 2026 and is projected to fall below 0.5x in fiscal 2027.
Liquidity and Risk Factors
Prism Johnson maintains strong liquidity, with approximately ₹548 crore in cash and equivalents as of March 31, 2026. The company’s financial flexibility is also supported by its group affiliation. However, the rating is partially offset by susceptibility to fluctuations in input costs, realisations, industry cyclicality, and intense competition.
Source: BSE
