Prannoy was coming into the match after playing two three-game matches which lasted close to 70 minutes and he admitted it took a toll on his body.
The 29-year-old from Odense won eight titles in 2022, including the World Championships, All England and World Tour Finals.
Lakshya Sen lost 18-21, 15-21 in 57 minutes to the three-time world junior champion Kunlavut Vitidsarn in the summit clash.
Notwithstanding the loss, it was a brilliant achievement for Prannoy as he became only the fifth Indian men's singles player to win a World Championships medal.
Kunlavut beat Olympic champion Axelsen of Denmark in 64 minutes to claim his maiden Super 750 tournament title.
Lakshya Sen got better of Viktor Axelsen 21-13, 12-21, 22-20 in a semifinal that lasted one hour and 10 minutes.
Sen looked in control in the first game against his seeded opponent but lost his way as the match progressed to eventually go down 21-13 17-21 13-21 in a contest that lasted one hour and 15 minutes.
