OSAKA SODA CO., LTD.
4046・Prime Market・Chemicals
Business
Osaka Soda Co., Ltd. traces its origins to a Chlor-Alkali manufacturer founded in 1915, and has since grown into a research and development-oriented chemical corporate group operating four segments: Basic Chemicals, Functional Chemicals, Healthcare, and Trading Division. While producing Basic Chemicals such as caustic soda and Epichlorohydrin, the company has cultivated high value-added Functional Chemicals including Allyl Ethers (world's top share), Epichlorohydrin Rubber (EC Rubber), and DAP Resin & DAP Monomer, as well as a Healthcare business encompassing Pharmaceutical Purification Materials and Active Pharmaceutical Ingredients & Intermediates. The group, including 12 consolidated subsidiaries, has built manufacturing and sales networks both domestically and internationally, with a customer base spanning diverse industries such as pharmaceuticals, automobiles, and electronic materials.
Business Model
The company forms a revenue base in which the Basic Chemicals business accounts for approximately 42% of net sales, while Functional Chemicals and Healthcare push up overall profitability with high margins. In particular, the Healthcare segment achieved a segment operating margin of 48.9% in FY2026 (ending March 2026), recording segment profit of ¥7,156 million on net sales of ¥14,635 million. Through a vertically integrated model combining in-house manufacturing, group sales subsidiaries, and overseas local subsidiaries, the company provides consistent value from manufacturing through to sales.
Company Strengths
The Healthcare segment achieved a segment operating profit margin of 48.9% in FY2026 (ending March 2026). Against a backdrop of expanding demand for Pharmaceutical Purification Materials used in diabetes and obesity treatment drugs, the company expanded production capacity to approximately twice the FY2023 level through enhancements at the Matsuyama Plant (completed September 2024) and the Amagasaki Plant (completed September 2025). Furthermore, an additional expansion plan totaling over ¥10 billion is being executed through February 2028, with advance investment in supply capacity forming a competitive advantage.
In the Functional Chemicals segment, the company holds the world's top share in Allyl Ethers. It is planning and executing a production capacity expansion to approximately 1.2 times current levels by March 2027, continuing advance investment aimed at maintaining and expanding its share. For DAP Resin & DAP Monomer as well, progress in replacement in the European, US, and Chinese markets is underway, and holding multiple global niche top product lines serves as a differentiating factor versus competitors.
Centered on the research center in Amagasaki City, Hyogo Prefecture, R&D expenses of ¥2,991 million were recorded in FY2026 (ending March 2026). The company is advancing R&D across multiple advanced fields, including high ionic conductivity materials for all-solid-state batteries, next-generation communication materials, and biopharmaceutical manufacturing and purification technologies. The proprietary technology accumulated over more than 60 years since the research institute was established in 1961 forms the foundation for creating global niche top products.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal periods, net sales trended as follows: FY2022 ¥88,084 million → FY2023 ¥104,208 million (peak) → FY2024 ¥94,557 million (decline due to higher raw material costs and lower demand) → FY2025 ¥96,434 million → FY2026 ¥99,961 million, showing a gradual recovery trend. Operating profit bottomed out at ¥10,492 million in FY2024, then recovered sharply to ¥13,246 million in FY2025 and ¥17,634 million in FY2026, with the profit margin improving substantially from 11.1% in FY2024 to 17.6% in FY2026. External factors such as the expansion of the diabetes and obesity treatment drug market, improvement in overseas Epichlorohydrin market conditions, and the resolution of supply issues at the Mizushima Plant provided tailwinds. Cost of sales decreased from ¥67,487 million in the previous period to ¥66,232 million in the current period, and the improvement in gross profit from ¥28,946 million to ¥33,728 million was the main driver of profit expansion. Comprehensive income was ¥21,675 million (up 118.8% year on year), also boosted by an increase in valuation gains on investment securities.
Growth Strategy
Targeting operating profit of ¥30.0 billion in FY2030 through three pillars: expanding Healthcare production capacity, deepening niche positions in Functional Chemicals, and commercializing next-generation materials businesses
Production capacity has already expanded to approximately double the FY2023 level through enhancements at the Amagasaki and Matsuyama plants. The company has decided to invest a further ¥10 billion or more by February 2028 to raise capacity to approximately double the current level. Against a backdrop of continued growth in demand for diabetes and obesity treatment drugs, the company aims to maintain and expand its top global market share.
Capacity enhancement of shipping facilities was implemented in FY2026 (ending March 2026). The company is promoting a plan to expand production capacity to approximately 1.2 times the current level by March 2027. While capturing the recovery in the Chinese market, it aims to further strengthen its position as the world's top share holder.
Development of the ultra-high ionic conductivity polymer for all-solid-state batteries, adopted as a NEDO Green Innovation Fund project, is progressing steadily. The company has decided to construct pilot facilities toward establishing a mass production system. Under the new medium-term management plan, this is positioned as the next Global Niche Top product, with the goal of commercialization by 2030 and growth into a new pillar of earnings by 2035.
Formulated as a five-year plan covering FY2026 to FY2030. Under the three pillars of "rebuilding the value of existing businesses and accelerating growth in the Healthcare domain," "creating new businesses by mobilizing the full strength of the company," and "strengthening the management foundation to flexibly respond to changes in the business environment," the company aims to achieve operating profit of ¥30.0 billion in FY2030.
The annual dividend for FY2026 (ending March 2026) is ¥28 (a substantial increase compared to the previous fiscal period), with a dividend payout ratio of 22.5%. The FY2027 (ending March 2027) forecast also maintains ¥28. During the current fiscal period, the company carried out share buybacks of ¥6,005 million and introduced a progressive dividend policy. It has also decided to grant restricted stock to its employee stock ownership plan, aiming to improve capital efficiency while enhancing employee engagement.
Last updated: July 19, 2026