Prism Johnson's margin slips as expenses outpace revenue growth
Operating margin fell 1.62 percentage points QoQ, while reported net profit rose 84.69% despite a 49.79% decline in profit before tax.
Filed 06 Nov 2026, 12:54 IST · Prism Johnson Ltd (PRSMJOHNSN)
Key takeaways
- Consolidated operating margin fell 1.62 percentage points QoQ to 10.40% as expenses grew 3.64% against 1.77% revenue growth.
- Reported net profit rose 84.69% QoQ to Rs 208.14 cr even as profit before tax declined 49.79% to Rs 60.37 cr.
- Prism Johnson's operating margin was 2.45 percentage points below the 12.85% median for 136 reported commodities-sector peers.
Price around the results
Costs outpaced revenue in Q2FY27
Consolidated revenue grew 1.77% QoQ, but expenses increased 3.64%, reducing operating profit by 11.90%. This pushed operating margin down 1.62 percentage points to 10.40%, indicating that cost growth absorbed the modest increase in sales.
Net profit diverged sharply from pre-tax profit
Reported net profit increased 84.69% QoQ even as profit before tax fell 49.79%. Other income accounted for 20.79% of current-quarter pre-tax profit, while the tax rate rose 3.70 percentage points to 25.51%; the divergence makes the reported net-profit increase less representative of operating momentum.
Margin trails the commodities-sector median
Prism Johnson's 10.40% operating margin was 2.45 percentage points below the 12.85% median among 136 commodities-sector peers that had reported the quarter. With only one prior quarter in the available trend, the margin direction is a sequential decline rather than an established multi-quarter pattern.
Stock fell on the results date
The stock declined 1.04% on the results date and underperformed its benchmark by 3.05%. There is no past-results reaction history here to establish whether that move was typical for Prism Johnson.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,868 cr | ₹1,835 cr | +1.77% |
| Other income | ₹13 cr | ₹59 cr | -78.61% |
| Expenses | ₹1,674 cr | ₹1,615 cr | +3.64% |
| Operating profit | ₹194 cr | ₹221 cr | -11.90% |
| Operating margin (%) | 10.40% | 12.02% | — |
| Interest | ₹31 cr | ₹37 cr | -15.31% |
| Depreciation | ₹115 cr | ₹122 cr | -5.63% |
| Profit before tax | ₹60 cr | ₹120 cr | -49.79% |
| Tax | ₹15 cr | ₹26 cr | -41.27% |
| Net profit | ₹208 cr | ₹113 cr | +84.69% |
| EPS (₹) | ₹4.09 | ₹2.07 | +97.58% |
Operating margin of 10.40% compares with a Commodities sector median of 12.85% across 136 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.04% | -3.05% |
Volume on the results session was 14.12× its 20-day average.
What to watch
- Whether operating margin recovers from 10.40% after the 1.62-percentage-point QoQ decline.
- Whether expense growth moderates from 3.64% against revenue growth of 1.77%.
- Whether other income remains a material contributor after accounting for 20.79% of pre-tax profit.