CREDIT RISK UPDATESConstruction Materials

Prism Johnson Limited sees a credit rating action

Prism Johnson LimitedPRSMJOHNSN

TL;DR

Prism Johnson’s weighted average cost of debt, debt maturity profile, and any recent credit rating upgrades are not publicly disclosed in the available financial filings or KPI data. Similarly, sector-wide rating trends and credit rating actions cannot be assessed because news and analyst coverage were not retrievable for this turn.

How does Prism Johnson’s current weighted average cost of debt and debt maturity profile compare to its direct peers in the building materials sector, and to what extent does this rating upgrade reflect a structural improvement in the company's liquidity position versus sector-wide trends?

Prism Johnson’s weighted average cost of debt, debt maturity profile, and any recent credit rating upgrades are not publicly disclosed in the available financial filings or KPI data. Similarly, sector-wide rating trends and credit rating actions cannot be assessed because news and analyst coverage were not retrievable for this turn.

However, evaluating Q4 FY26 balance sheet data provides a clear comparative view of Prism Johnson’s leverage, liquidity position, and debt service coverage relative to its direct peers in the building materials sector.

Peer Leverage and Liquidity Comparison (Q4 FY26)

Key Analytical Implications

  • Leverage Profile: Prism Johnson operates with a consolidated gross debt-to-equity ratio of 0.73x [19] and total debt of Rs 1,112.6 Crores [16]. This places it at the higher end of financial leverage compared to debt-averse or near-debt-free peers like HeidelbergCement (0.00x) [43], Orient Cement (0.02x) [49], and Star Cement (0.18x) [37], though it remains comparable to JK Lakshmi Cement (0.64x) [31] and Birla Corporation (0.44x) [25].
  • Liquidity Position: Prism Johnson holds a relatively robust cash and equivalents buffer of Rs 476.70 Crores [18] on a consolidated basis, lowering its net debt to Rs 635.90 Crores [17]. However, its current ratio stands at 0.90x [20], indicating tighter near-term working capital coverage than peers such as Orient Cement (1.95x) [50], Star Cement (1.31x) [38], and JK Lakshmi Cement (1.29x) [32].
  • Coverage Constraints: Prism Johnson's consolidated interest coverage ratio of 4.58x [21] provides adequate debt servicing capacity, but lags behind mid-to-large-cap peers such as Birla Corporation (8.87x) [27], Star Cement (25.07x) [39], and HeidelbergCement (84.19x) [45].
CompanyBasisTotal Debt (Rs Cr)Net Debt (Rs Cr)Cash & Equivalents (Rs Cr)Gross Debt / EquityCurrent RatioInterest Coverage Ratio
Prism JohnsonConsolidated1,112.6 [16]635.90 [17]476.70 [18]0.73x [19]0.90x [20]4.58x [21]
Birla CorporationConsolidated3,275.3 [22]3,145.6 [23]129.64 [24]0.44x [25]1.26x [26]8.87x [27]
JK Lakshmi CementConsolidated2,491.4 [28]2,418.1 [29]73.40 [30]0.64x [31]1.29x [32]6.10x [33]
Star CementConsolidated586.19 [34]573.05 [35]13.14 [36]0.18x [37]1.31x [38]25.07x [39]
HeidelbergCementStandalone0.00 [40]-67.49 [41]67.49 [42]0.00x [43]1.10x [44]84.19x [45]
Orient CementStandalone38.41 [46]22.25 [47]16.16 [48]0.02x [49]1.95x [50]22.21x [51]

Sources

  1. [1]Net Debt
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  5. [5]Net Debt to Equity
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  7. [7]Gross Debt to Equity
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  11. [11]Debt Service Coverage Ratio
  12. [12]TTM Debt Service Coverage Ratio
  13. [13]TTM EBITDA Margin
  14. [14]TTM EBITDA Margin
  15. [15]Prism Johnson Limited Credit Rating Upgrade to IND AA-/Positive by India Ratings — 2026-08-06T14:39:16.983000, p.1
  16. [16]Total Debt
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  28. [28]Total Debt
  29. [29]Net Debt
  30. [30]Cash and Equivalents
  31. [31]Gross Debt to Equity
  32. [32]Current Ratio
  33. [33]Interest Coverage Ratio
  34. [34]Total Debt
  35. [35]Net Debt
  36. [36]Cash and Equivalents
  37. [37]Gross Debt to Equity
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  39. [39]Interest Coverage Ratio
  40. [40]Total Debt
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  43. [43]Gross Debt to Equity
  44. [44]Current Ratio
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  46. [46]Total Debt
  47. [47]Net Debt
  48. [48]Cash and Equivalents
  49. [49]Gross Debt to Equity
  50. [50]Current Ratio
  51. [51]Interest Coverage Ratio

Keep digging

What specific financial metrics—such as Net Debt/EBITDA or Interest Coverage Ratio—did India Ratings cite as the primary drivers for the upgrade to IND AA-/Positive, and how do these figures align with the company's reported leverage ratios in the most recent annual report?

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