Nissan Chemical Corporatiom
4021・Prime Market・Chemicals
Business
Nissan Chemical Corporation is a specialty chemicals manufacturer listed on the Tokyo Stock Exchange, founded in 1887, forming a group with 36 subsidiaries and 9 affiliated companies. Its business consists of six segments: Functional Materials (Anti-Reflective Coating for Semiconductors, display materials, inorganic colloids), Agricultural Chemicals (agrochemicals, active pharmaceutical ingredients for veterinary medicines), Chemicals (basic chemicals, fine chemicals), Healthcare (active pharmaceutical ingredients, contract manufacturing), Wholesale, and Other (fertilizers, landscaping, transportation, etc.). Its main customers include semiconductor manufacturers, agrochemical distributors, and pharmaceutical manufacturers, and the company operates globally with manufacturing, sales, and R&D bases both domestically and overseas.
Business Model
Leveraging proprietary core technologies in precision organic synthesis, functional polymer design, and fine particle control, the company independently develops and manufactures hard-to-replace, high-value-added products such as semiconductor materials and agrochemical active ingredients, which it sells globally. The Functional Materials segment maintains an operating margin exceeding 30%, and the Agricultural Chemicals segment also maintains a high level above 28%. The company sustains its technological edge through continuous investment in R&D expenses (¥21,376 million in FY2026 (ending March 2026)), underpinning a profit structure built on sustained technological advantage.
Company Strengths
The Functional Materials segment achieved net sales of ¥113,377 million and operating income of ¥35,331 million (operating margin of 31.2%) in FY2026 (ending March 2026). ARC® (Anti-Reflective Coating for Semiconductors) and OptiStack® (Multilayer Materials) saw substantial sales growth driven by strong customer utilization rates, exceeding the earnings forecast by ¥3.7 billion in net sales and ¥3.2 billion in operating income. The start of operations at the Toyama No. 2 Analysis Building has also expanded the analysis and evaluation technology infrastructure supporting advanced lithography and packaging materials.
The Agricultural Chemicals segment achieved net sales of ¥96,243 million and operating income of ¥26,043 million (operating margin of 27.1%) in FY2026 (ending March 2026). The company markets proprietary active-ingredient products both domestically and overseas, including the insecticide "Grasia," the paddy rice herbicides "Altea" and "Verdad," and the fungicide "Raimei." Active ingredient manufacturing has also commenced at the Indian joint venture Nissan Bharat Rasayan Pvt., Ltd., strengthening supply capacity. Fluralaner, an active pharmaceutical ingredient for veterinary medicines, serves as the API for Bravecto®, which is sold in over 100 countries worldwide, securing stable earnings.
R&D expenses in FY2026 (ending March 2026) totaled ¥21,376 million (7.6% of net sales). In addition to three domestic research laboratories (Materials Science, Materials Engineering, and Life Sciences), R&D centers have been established in South Korea, Taiwan, and China. Based on five core technologies—precision organic synthesis, functional polymer design, fine particle control, biological evaluation, and light control—the company is advancing development of next-generation products such as EUV materials, packaging materials, nucleic acid pharmaceuticals, and biopesticides, with high technological barriers to entry serving as a source of competitive advantage.
ENVALITH's Perspective
Performance Trend
Revenue expanded 34.4% over five fiscal years, from ¥207,972 million in FY2022 (ended March 2022) to ¥279,586 million in FY2026 (ending March 2026). Operating profit increased 24.7% over the same period, from ¥50,959 million to ¥63,552 million, while net income for the period rose 28.2%, from ¥38,776 million to ¥49,707 million. Although there was a temporary profit decline in FY2024 (ended March 2024) (operating profit of ¥48,201 million), performance has recovered and accelerated since FY2025 (ended March 2025). Externally, growing demand for semiconductor materials driven by expanding AI-related investment and the effects of yen depreciation have served as tailwinds. By region, sales to China showed the largest increase, reaching ¥57,954 million (up 21.7% year on year).
Growth Strategy
Accelerating global expansion in Functional Materials and Agricultural Chemicals and new technology investment under "Vista2027"
Establishment of a new semiconductor material manufacturing base in South Korea to strengthen the supply capacity of lithography materials such as ARC®. This will accelerate the capture of demand for AI and advanced semiconductors, sustaining growth in the Functional Materials segment.
Promoting the adoption of "Glacia" and "Raimei" in Asia, the Middle East, and Africa. Backed by strengthened supply capacity through active ingredient manufacturing at the Indian joint venture (since March 2023), the company aims to expand overseas agrochemical sales.
Utilizing AI-driven MI to accelerate the development speed of new materials, thereby speeding up the creation of new products in Functional Materials and Agricultural Chemicals. The aim is to maintain and strengthen technological advantages over competitors.
By expanding sales of generic active pharmaceutical ingredients and increasing sales of high-value-added chemicals such as Finoxocol, the company aims to raise the earnings contribution of segments other than Functional Materials and Agricultural Chemicals, improving portfolio stability.
Last updated: July 19, 2026