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Defending champion Lakshya Sen and former champion Saina Nehwal suffered contrasting defeats in their respective second round matches.
Second see Lee Zii Jia, and Denmark's Antonsen registered hard-fought wins on the day.
This was Prannoy's second career win over Axelsen, whom he had beaten during the Indonesia Masters last year.
With two losses, Prannoy's chances of making it to the knockout stage is as good as over and rests on results of multiple calculations.
India's singles ace went down to the rising Japanese star in an hour-long contest.
He became only the fourth Indian to win a silver medal in the competition.
The world No. 8 Indian pair dished out an attacking game and also controlled the net well to outwit the Korean combination of Choi Sol Gyu and Kim Won Ho.
The Indian duo will face the Korean pair of Choi Sol Gyu and Kim Won Ho in the semifinals.
The singles star fired Kerala to a 3-1 win over Assam in the quarterfinals.
The two stars met in Thiruvananthapuram on Wednesday.