ENVALITH
株式会社グリムス logo

gremz,Inc.

3150・Prime Market・Electric Power & Gas

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株式会社グリムス logo
gremz,Inc.3150

Business

Grims Co., Ltd. is a comprehensive energy service company that, under the slogan "New Energy for Management," provides an integrated range of services from energy cost reduction proposals to products and services for corporate and general household customers. Its core businesses are two pillars: the sale of commercial solar power generation systems and storage batteries to corporate customers (Energy Solutions business), and electricity retailing for low-voltage and high-voltage power customers (Retail Electricity business). In addition to consulting-based sales of electronic breakers, LED lighting, energy-saving equipment, and the like, the company also operates recurring-revenue businesses such as grid-connected storage battery station operation and electricity sales from mega-solar facilities. Operating as a group that includes 4 subsidiaries, the company is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company builds relationships with customers by installing solar power generation systems on factory and building roofs and selling energy-saving equipment (flow revenue), then increases customer spending through cross-selling. In parallel, it accumulates recurring stock revenue through retail electricity (a two-company structure comprising Grims Power and GR Consulting) and the operation of grid-connected storage battery facilities. Power procurement risk is managed through multi-layered hedging, including proprietary fuel cost adjustments, market price-linked contracts, and derivative transactions, maintaining a stable profit base.

Company Strengths

The company avoids dependence on a single business by combining flow revenue from solar power and storage battery sales with stock revenue from the Retail Electricity Business (FY2026 (ending March 2026) net sales of ¥19,242 million, segment profit of ¥2,886 million) and grid-connected storage battery operations. The operating margin reached 21.1% in FY2026 (ending March 2026), with both flow and stock revenue contributing to profit growth.

Since beginning sales of electronic breakers in 2005, the company has accumulated 20 years of consulting-based sales experience targeting small and medium-sized enterprises and low-voltage electricity customers. Its customer base, centered on low-voltage customers with low load factors, also directly reduces power procurement risk, providing a structural advantage that underpins the stable earnings of the Retail Electricity Business.

As of the end of FY2026 (ending March 2026), the equity ratio stood at 68.0%, cash and cash equivalents totaled ¥16,323 million, and interest-bearing debt totaled ¥3,658 million. Operating cash flow expanded to ¥5,099 million in line with profit growth, giving the company sufficient financial capacity to fund capital investment in grid-connected storage batteries (¥2,021 million in the current fiscal year) using internal funds.

ENVALITH's Perspective

For FY2026 (ending March 2026), revenue was ¥33,936 million (up 1.8% year on year), with the growth rate decelerating, but operating profit came to ¥7,152 million (up 10.0% year on year), and the operating margin improved clearly to 21.1% (from 19.5% in the previous fiscal year). While cost of sales decreased to ¥22,184 million (from ¥22,357 million in the previous fiscal year), gross profit expanded to ¥11,752 million (from ¥10,984 million), reflecting the combined effect of cost reductions in the retail electricity business due to lower wholesale power market prices and improved profitability in the energy solutions business from its focus on corporate clients. It is commendable that both revenue and each profit line reached new record highs.

From March of FY2026 (ending March 2026), the Iga Battery Park (Unit 1) began operating in the wholesale electricity market, with a planned transition to the balancing power market in April of FY2027 (ending March 2027). Additionally, a total of six grid-scale storage battery facilities, including Toyohashi Battery Park II, are planned to come online sequentially. The grid-scale storage battery business is expected to become a new source of stable recurring revenue, but there is a risk that earnings will be affected by external factors such as trends in wholesale electricity market prices and balancing power market prices. Achieving the FY2027 (ending March 2027) earnings forecast (revenue of ¥37,174 million, operating profit of ¥7,900 million) will depend significantly on the earnings contribution from this business.

In FY2026 (ending March 2026), in response to declining profitability driven by rising event costs at large commercial facilities, among other factors, the company scaled back sales of residential solar power generation systems and storage batteries to individual consumers, recording ¥111 million in business restructuring costs as an extraordinary loss. This cost is one-off in nature, and the profitability improvement effect from the shift in focus toward corporate clients is already reflected in the results. On the other hand, as an external factor, the policy under the 7th Strategic Energy Plan promoting active use of self-consumption-type rooftop solar is a tailwind for both corporate and household segments, and investors should also be mindful of the risk that withdrawal from the residential market could result in a medium- to long-term opportunity loss. The decline in the interest coverage ratio from 313.8 times (FY2024, ended March 2024) to 172.1 times (FY2026, ending March 2026) also warrants attention as a sign of rising financial costs associated with increased borrowing.

Growth Strategy

Expanding corporate sales of Commercial Solar Power Generation Systems and establishing new stock-type revenue through the operation of six grid-connected storage battery facilities

Focusing mainly on small and medium-sized enterprises and low-voltage electricity customers, the company promotes self-consumption proposals through solar power installation on factory roofs. By expanding human resources and actively promoting partnerships with other companies, it aims to strengthen its order-taking base and drive further growth in the Energy Solutions Business in FY2027 (ending March 2027). In FY2026 (ending March 2026), revenue reached ¥14,693 million (up 5.4% year on year) and segment profit reached ¥5,032 million (up 11.0% year on year).

Iga Battery Park (the first unit) began operating in the wholesale electricity market from March 2026. It will transition to the balancing market in April 2026 to expand profitability. Subsequently, a total of six grid-connected storage battery facilities, including Toyohashi Battery Park II, will be brought online in sequence, establishing a new source of stock-type revenue. The company will leverage the growing need for power grid stabilization as a favorable external tailwind.

The company strengthens its contract acquisition capability through a two-company structure comprising Grimms Power and GR Consulting (fully operational from FY2026 (ending March 2026)). While maintaining multi-layered risk hedging, including proprietary fuel cost adjustments and derivative transactions, it aims to increase contract volume as a stable base of stock-type revenue. In FY2026 (ending March 2026), contract volume increased by approximately 10,000 units compared to the end of the previous fiscal year, and segment profit reached ¥2,886 million (up 3.1% year on year).

In response to declining profitability due to rising event costs at large commercial facilities, the company has scaled down consumer sales of Residential Solar Power Systems / Storage Batteries (Being Scaled Down) and shifted to a business structure centered on corporate sales. Business structure improvement costs of ¥111 million were recorded as an extraordinary loss in FY2026 (ending March 2026). By concentrating on corporate sales, the company aims to build a highly profitable business structure.

Last updated: July 19, 2026