Why Did Prism Johnson's Profit Plunge 93% in Q1?

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Why Did Prism Johnson's Profit Plunge 93% in Q1?

Synopsis

Prism Johnson Ltd has reported a shocking 93% drop in net profit for Q1 FY26, raising questions about its financial health and future direction. Despite a year-on-year revenue increase, the company's sequential profit has alarmed investors. What led to this dramatic decline? Discover the full story.

Key Takeaways

  • Net profit of Prism Johnson Ltd drops to Rs 8.33 crore in Q1 FY26.
  • Sequential decline of 93 per cent from Rs 133.02 crore in Q4 FY25.
  • Revenue of Rs 1,781.13 crore shows a 9 per cent drop quarter-on-quarter.
  • Year-on-year revenue increase from Rs 1,646.90 crore.
  • Termination of the Power Consumption Agreement with ReNew Green.

New Delhi, Aug 7 (NationPress) The integrated building materials firm Prism Johnson Ltd announced a net profit of Rs 8.33 crore for Q1 FY26, marking a staggering drop of 93 per cent sequentially, as per its recent exchange filing on Thursday.

In the previous quarter (Q4 FY25), the company had recorded a net profit of Rs 133.02 crore, while in the same quarter last year (Q1 FY25), it faced a loss of Rs 47 lakh.

For Q1 FY26, revenue amounted to Rs 1,781.13 crore, a decline from Rs 1,951.82 crore in the preceding quarter, representing a nearly 9 per cent quarter-on-quarter decrease. However, compared to last year's corresponding quarter, revenue saw an increase from Rs 1,646.90 crore.

This decline in revenue coincided with a decrease in total expenses, which were Rs 1,769.5 crore in Q1 FY26, down from Rs 1,924.06 crore in Q4 FY25. Expenses stood at Rs 1,647.51 crore in Q1 FY25.

During its Board meeting, the company appointed Nitesh Mathur, Senior Vice President of the Johnson Bath Division, as Senior Management Personnel, as stated in the filing.

Additionally, Prism Johnson has ended its Power Consumption Agreement (PCA) with ReNew Green (MPR Two) Private Limited. This agreement, initiated on May 31, 2023, aimed to establish a special-purpose vehicle for a 24 MW wind power project to supply energy to its Cement Plant in Satna, Madhya Pradesh, where the company holds a 45 per cent share with an investment of Rs 7.28 crore.

Following the Q1 results announcement, shares of Prism Johnson were trading positively. At around 1:28 PM, shares were priced at Rs 147.49, up 1.15 per cent. Over the last five sessions, the stock dipped by more than 4 per cent, and in the past month, it has decreased by more than 7 per cent. Year-to-date, the stock has dropped by over 12 per cent.

Point of View

It is crucial to highlight the significant shifts in Prism Johnson's financial performance. The dramatic 93% decrease in profit raises valid concerns about the company's future strategies. While the year-on-year revenue growth is encouraging, the sequential decline could undermine investor confidence. It's essential to watch how management addresses these challenges moving forward.
NationPress
19/08/2025

Frequently Asked Questions

What caused Prism Johnson's profit decline?
The profit decline was primarily due to a significant drop in net profit from Rs 133.02 crore in the previous quarter to Rs 8.33 crore in Q1 FY26, despite an increase in year-on-year revenue.
How did Prism Johnson's revenue change in Q1 FY26?
Prism Johnson's revenue for Q1 FY26 was Rs 1,781.13 crore, which is a decline from Rs 1,951.82 crore in the previous quarter, but an increase from Rs 1,646.90 crore in the same quarter last year.
What is the impact of the Power Consumption Agreement termination?
The termination of the Power Consumption Agreement with ReNew Green may affect future energy supply strategies for Prism Johnson's Cement Plant, as it was intended to support a wind power project.
What is the current stock performance of Prism Johnson?
As of the latest updates, Prism Johnson's shares were trading at Rs 147.49, reflecting a slight increase of 1.15%. However, the stock has decreased by over 12% year-to-date.
Who was appointed as Senior Management Personnel?
Nitesh Mathur, the Senior Vice President of the Johnson Bath Division, has been appointed as Senior Management Personnel during the recent Board meeting.