Prism Johnson Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing remarkable profit growth driven by exceptional gains from strategic asset sales and improved operational performance across key business segments. The company also released a comprehensive investor presentation on February 6, 2026, highlighting its recovery trajectory and operational improvements.

Outstanding Profit Performance

The company delivered exceptional standalone financial results for Q3FY26, with net profit surging 62% to ₹77.25 crores compared to ₹47.67 crores in the corresponding quarter of the previous year. This significant improvement was primarily driven by exceptional gains from the sale of office premises and enhanced operational efficiency.

Exceptional Items Drive Performance

The quarter's performance was significantly boosted by exceptional items totaling ₹112.41 crores in income. The company concluded the sale of its office premises located in Mumbai for a total consideration of ₹165.91 crores, generating a gain of ₹151.46 crores. However, this was partially offset by ₹39.05 crores in additional expenses related to the implementation of new labour codes notified by the Government of India.

Consolidated Results Show Steady Growth

On a consolidated basis, the company reported net profit of ₹49.93 crores for Q3FY26 compared to ₹46.03 crores in Q3FY25, representing an 8.5% increase. Consolidated revenue from operations reached ₹1,843.96 crores, up from ₹1,820.65 crores in the previous year. The consolidated results include contributions from subsidiaries, associates, and joint ventures across the cement, HRJ, RMC, and insurance segments.

Segment-wise Performance Analysis

The company's diversified business portfolio showed improved performance across segments during Q3FY26. The cement segment generated revenue of ₹782.91 crores with segment results of ₹17.21 crores before exceptional items. The HRJ division contributed ₹566.21 crores in revenue with segment results of ₹8.92 crores, while the RMC segment recorded revenue of ₹390.99 crores with segment results of ₹2.46 crores.

Recovery Trajectory Across Business Segments

According to the investor presentation, the company has transitioned from industry headwinds to sustained recovery. Prism Cement saw meaningful improvement in profitability, with EBITDA per tonne increasing to ₹625 in 9M FY26 from ₹255 in 9M FY25. H&R Johnson delivered margin expansion with EBITDA margin improving to 6.2% in 9M FY26 from 4.8% in 9M FY25. Prism RMC also reported improved profitability, with EBITDA margin rising to 7.2% in 9M FY26 from 5.6% in 9M FY25.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, the company demonstrated strong recovery with standalone net profit of ₹103.43 crores compared to a loss of ₹30.83 crores in the corresponding period of the previous year. Revenue from operations for the nine-month period stood at ₹5,220.01 crores, showing growth from ₹4,786.88 crores in the previous year.

The Board of Directors approved these results at their meeting held on February 6, 2026, with the statutory auditors completing their limited review of the financial statements.

Prism Johnson Limited has achieved a significant victory in its ongoing tax litigation, with the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) ruling in favor of the company on January 10, 2025. The tribunal set aside a substantial tax demand of Rs.34.10 crores, including penalties of Rs.26.40 crores, that had been raised by the Commissioner CGST & Central Excise, Jabalpur against the company and its employees.

CESTAT Ruling Details

The appellate tribunal's decision was comprehensive, addressing both the primary demand and associated penalties. The CESTAT ruled that the entire demand was time-barred, effectively nullifying the tax authorities' claims. Additionally, the tribunal set aside all penalties imposed on both the company and its employees in their entirety.

High Court Appeal Process

Despite the favorable CESTAT ruling, the tax dispute has entered a new phase. The Commissioner CGST & Central Excise, Jabalpur, filed an appeal with the Hon'ble High Court of Madhya Pradesh, Principal Seat at Jabalpur on July 21, 2025, challenging the tribunal's decision. The High Court has admitted the appeal and issued a notice dated January 12, 2026, which was served to Prism Johnson and other respondents on January 23, 2026.

Upcoming Legal Proceedings

The legal timeline for this case continues to progress with specific milestones established by the court system.

Company's Position and Outlook

Prism Johnson has maintained a confident stance regarding the litigation outcome. The company has stated that it remains hopeful of a favorable outcome in the High Court proceedings and does not reasonably expect any material financial impact from this ongoing legal matter. This disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as part of the company's commitment to transparency with stakeholders.

The case represents a continuation of tax litigation that has been ongoing since the original disclosure made by the company on August 14, 2023. Regular updates on this and other tax litigations have been provided through the company's Integrated Governance Reports, demonstrating consistent communication with investors and regulatory authorities regarding material legal developments.