Credit Rating

August 27, 2026 The National Stock Exchange of India Limited The BSE Limited, Exchange Plaza, Bandra-Kurla Complex, Corporate Relationship Department, Bandra (East), Mumbai - 400 051. P. J. Towers, Dalal Street, Fort, Mumbai - 400 023. Code: PRSMJOHNSN Code: 500338 Dear Sir, Sub.: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Re-affirmation of Credit Rating Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Crisil Ratings Limited ('Crisil Ratings') has re-affirmed its ratings on the Commercial Paper programme of the Company as ‘Crisil A1+’. Rating rationale published by Crisil Ratings on its website on August 26, 2026 in this regards is enclosed herewith. The above is for your information and record. Thanking you, Yours faithfully, for PRISM JOHNSON LIMITED SHAILESH DHOLAKIA Company Secretary & Compliance Officer Encl.: As above 8/26/26, 7:43 PM Rating Rationale Rating Rationale August 26, 2026 | Mumbai Prism Johnson Limited Rating reaffirmed at 'Crisil A1+ ' Rating Action Regulator of Name Of Instrument Rating Outstanding with Outlook Instrument Rs.200 Crore Commercial Paper Crisil A1+ (Reaffirmed) RBI Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to Annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil A1+’ rating on the commercial paper programme of Prism Johnson Ltd (PJL). The rating reflects the healthy business risk profile of PJL, supported by its position as a prominent cement player in the central region, its established presence in the domestic ceramic and vitrified tiles industry along with being one of the leading players in the ready-mix concrete (RMC) business. Furthermore, PJL has undertaken structural improvements at its manufacturing plants that resulted in enhanced operating efficiency across the Cement, HRJ and RMC divisions. The rating also factors in the strong liquidity and financial risk profile aided by healthy accruals, low capital expenditure (capex) and proceeds from divestment of non-core assets. These strengths are partially offset by susceptibility to fluctuations in input costs and realisations, cyclicality in the industry and exposure to intense competition. During fiscal 2026, the consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) margin improved to 9.5%, compared to 6.8% in the previous fiscal, driven by improved performance across segments. Cement Ebitda per ton increased led by higher pricing and lower input costs, post an industry wide subdued fiscal 2025. Operating margin in the tiles division was supported by ramp up of plants post modernization activities carried out by the company. As for the RMC division, profitability improvement was driven by higher contributions from Commercial Concrete, increase in value added products in the sales mix and improved plant utilisation and operating leverage. For fiscal 2027, Crisil Ratings expects consolidated EBITDA margin to sustain at more than 9% as input cost side pressures due to the West Asia conflict are expected to be mitigated to an extent through internal operating efficiency improvements as well as price hikes undertaken by the players in tiles industry. Over the medium term, profitability is expected to gradually improve, driven by higher share of green power in cement manufacturing and higher value products and operating leverage in the tiles segment. Financial risk profile was enhanced by the sale of office premises and divestment of stake in PJL’s insurance subsidiary Raheja QBE General Insurance Company (RQBE) in fiscal 2026 and second quarter of fiscal 2027 respectively. These resulted in proceeds of around Rs 492 crore, which were utilised by the company towards prepayment of its long-term debt obligations and reduction of supplier’s credit outstanding. Accordingly, the consolidated net debt to Ebitda ratio improved to 1.2x for fiscal 2026 against 2.4x for fiscal 2025 and 2.9x for fiscal 2024. Crisil Ratings expects the net debt to EBITDA ratio to improve further in fiscal 2027 to below 0.5x and remain comfortable over the medium term, amid no significant capex plans. Financial flexibility is marked by strong liquidity (Rs 548 crore as on March 31, 2026), along with management’s intent to prepay or refinance a large part of the term debt a year in advance. Analytical Approach Crisil Ratings has combined the business and financial risk profiles of PJL and its joint ventures (JVs), associate and subsidiary companies as these have strong financial, managerial and operational linkages. Crisil Ratings has factored in support from PJL to RQBE (till fiscal 2026) and has accordingly carried out adjustments to net worth, in line with the capital allocation approach. Crisil Ratings has considered supplier’s credit as debt. https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/PrismJohnsonLimited_August 26_ 2026_RR_401173.html 1/8 8/26/26, 7:43 PM Rating Rationale Please refer Annexure: List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers - Strengths Prominent cement player in the central region, established presence in the domestic tiles business and one of the leading players in the RMC business PJL is a prominent cement player in the central region with capacity of 5.6 million metric tonne per annum (MTPA) supported by long track record of operations. Cement sales for PJL are concentrated in Uttar Pradesh (UP), Madhya Pradesh (MP) and Bihar with majority of the offtake from eastern and central UP. PJL sells cement under the brands – Champion, Champion Plus, Champion All Weather and Duratech. PJL also has supply agreements with four suppliers for supply of cement having grinding capacity of 1.37 MTPA. The company’s tiles division, HRJ, has total tile manufacturing capacity of 64 million m2 across 11 units (including JVs). The division also houses a faucet manufacturing plant each in Samba, Jammu & Kashmir, and Baddi, Himachal Pradesh. HRJ has a wide product range including tiles, sanitary ware andfaucets, and engineering marbles and quartz. HRJ has a wide distribution network of over 900 dealers and 22 large format experience centres. Prism RMC, one of the leading RMC manufacturers, operates 89 RMC plants at 46 locations across India as on March 31, 2026. Healthy operating efficiency For the cement division, profitability recovered in fiscal 2026 as reflected in Ebitda per tonne of Rs 543 against Rs 351 during fiscal 2025. Crisil Ratings expects Ebitda per tonne to remain flattish in fiscal 2027 as high input prices amid the West Asia conflict will be mitigated by price hikes. However, the company’s focus on various cost efficiency measures including AFR usage, higher share of renewables and improving power consumption of units should support gradual profitability improvement over the medium term. During fiscal 2025, HRJ division profitability was impacted due to the company undertaking modernisation activities at some of its plants. However, post the completion of these activities and subsequent ramp up of plant utilisation rates, margins improved to 7.3% in fiscal 2026 from 5.8% in fiscal 2025. Margins are expected to sustain at more than 7.5% over the medium term, as any input price increase is expected to be passed on by the players. The RMC segment is expected to generate Ebitda margins of 7-8% going forward support by franchise led cost efficient model, pan-India presence and healthy demand. Heathy financial risk profile and strong liquidity Financial leverage, as measured by net debt [Showing first 8,000 characters — download PDF for full document]