ENVALITH
レカム株式会社 logo

RECOMM CO.,LTD.

3323・Standard Market・Wholesale Trade

Official website
レカム株式会社 logo
RECOMM CO.,LTD.3323

Business

RECAM Co., Ltd. is a group enterprise with 22 consolidated subsidiaries and 3 affiliated companies, operating three segments: the Domestic Solutions Business, which provides LED lighting and other decarbonization products, business phones, digital MFPs (multifunction printers), etc. in Japan together with leasing/sales and maintenance services; the Overseas Solutions Business, which deploys energy-saving solutions and information and communication equipment across ASEAN, China, and India; and the BPR Business, which handles DX promotion utilizing RPA and AI as well as BPO Outsourcing Services. Its main customers are domestic small and medium-sized enterprises as well as Japanese companies expanding overseas and local companies abroad. Consolidated revenue for FY2025 (ending September 2025) was ¥13,088 million, with the Overseas Solutions Business accounting for approximately 64% of the total, growing into the group's largest segment.

Business Model

In Japan, the company combines lease sales and direct sales through three channels—directly-operated stores, franchise stores, and agency stores—building a stable earnings model that accumulates stock-type revenue such as post-sale maintenance income. Overseas, local subsidiaries in ASEAN, China, and India conduct direct sales, agency sales, and e-commerce sales, expanding into local markets through M&A and alliances. In the BPR Business, the company maintains competitiveness through low-cost operations by embedding RPA and AI into BPO centers.

Company Strengths

In FY2025 (ended September 2025), the Overseas Solutions Business posted revenue of ¥8,417 million (up 27.2% year on year) and segment profit of ¥485 million (up 42.0% year on year), achieving substantial growth in both revenue and profit. In addition to multi-location expansion across ASEAN, China, and India, new contributions from an AI server sales subsidiary in Singapore and the full-scale launch of SpaceCool sales drove growth.

Domestically, the company operates three channels—directly-operated stores, franchise stores (16 stores), and agencies—and conducts cross-sell proposal sales leveraging its accumulated customer database. The Domestic Solutions Business showed a recovery trend in Q1 of FY2026 (ending March 2026)*, up 13.3% year on year, while the directly-operated store channel secured revenue of ¥2,549 million in FY2025 (ended September 2025), up 3.6% year on year. *Note: The source figures reference a fiscal year ending in September, translated here as provided.

The company offers energy-saving and decarbonization products such as LED lighting, commercial air conditioners, SpaceCool, and ReSPR both domestically and overseas. Amid growing demand from companies to advance carbon neutrality, the company is strengthening proposal-based sales both at home and abroad, with energy-saving solutions serving as a key driver of revenue growth overseas.

ENVALITH's Perspective

For the first half of FY2026 (ending September 2026), operating profit was ¥26 million (down 86.3% year on year), and profit before tax turned negative to a loss of ¥15 million. While temporary M&A-related expenses are cited as the main cause, the adjustment amount (companywide expenses) expanded sharply to negative ¥341 million from negative ¥102 million in the same period of the previous year, leaving concerns about the profitability of the core business. EBITDA also fell 50% year on year to ¥144 million. Achieving the full-year operating profit forecast of ¥550 million (up 34.8% year on year) would require a substantial profit recovery in the second half, with progress against the full-year forecast standing at only 4.8%.

Total assets as of the end of March 2026 stood at ¥15,297 million (up ¥2,592 million from the end of the previous fiscal year), and total borrowings reached ¥5,905 million (current ¥3,041 million plus non-current ¥1,865 million), up ¥1,566 million from the end of the previous fiscal year. The ratio of equity attributable to owners of the parent declined to 35.9% (39.8% at the end of the previous fiscal year). Goodwill of ¥3,087 million equates to 56% of equity attributable to owners of the parent of ¥5,491 million, heightening the risk of goodwill impairment as the M&A strategy continues. Operating cash flow was a significant outflow of negative ¥751 million, and the sharp increase in inventories (up ¥885 million from the end of the previous fiscal year) is also a point requiring attention in working capital management.

The Overseas Solutions Business, which accounts for approximately 66% of revenue, is highly sensitive to external factors such as US tariff policy, Middle East conditions, and China's economic slowdown. As an external factor, a weaker yen boosts the yen-converted sales of overseas subsidiaries, but it can also be a factor pushing up procurement costs. The DX Business posted revenue of ¥248 million (down 23.2% year on year) for the first half of FY2026 (ending September 2026), with a segment loss of negative ¥9 million, remaining in the red. Spot projects and business volume continue to decline, and it is taking time for the business to become profitable as the company's third pillar.

Growth Strategy

Under the Global Specialized Trading Company concept, the company is pursuing three pillars: overseas expansion, AI/DX promotion, and expansion of decarbonization product sales.

Expanding sales of energy-saving solutions such as LED lighting, commercial air conditioners, and SpaceCool in China, India, and ASEAN. Acquired Lumitron Pte. Limited of Singapore in January 2026 to strengthen the sales network. Revenue for the first half of FY2026 (ending September 2026) continued to grow, increasing 7.5% year on year to ¥4,581 million.

Promoting the expansion of sales of business automation services utilizing RPA and generative AI, as well as BPO Outsourcing Services. Reorganized RPA services from Recomm DX Solutions and integrated them with the BPO business to form the new "DX Business". However, in the first half of FY2026 (ending September 2026), performance remains weak, with revenue down 23.2% year on year due to a decrease in spot projects, among other factors.

Expanding sales of decarbonization products such as LED lighting, commercial air conditioners, and SpaceCool both domestically and internationally. Domestically, strengthening cross-selling of proprietary MFP plans and environmental products through directly-operated stores and franchise channels. Results are becoming visible, with segment profit in the Domestic Solutions Business increasing 119.3% year on year to ¥162 million.

Last updated: July 17, 2026