Daiki Axis Co.,Ltd.
4245・Standard Market・Chemicals
Business
Daiki Axis Co., Ltd. is a comprehensive environmental infrastructure company founded in 1958 (established under its current structure in 2005) and headquartered in Matsuyama City, Ehime Prefecture. With 18 consolidated subsidiaries (10 domestic, 8 overseas), the company's core operations center on the Environmental Equipment-Related Business (net sales of ¥24,681 million), which handles the development, manufacturing, construction, sales, and maintenance of Septic Tanks & Wastewater Treatment Systems on an integrated basis. It also operates the Housing Equipment-Related Business (¥20,631 million), covering housing equipment wholesale sales and construction工事, as well as the Renewable Energy-Related Business (¥2,430 million), spanning solar, wind, BDF, and hydrothermal treatment. Major customers include the DCM Group (accounting for 12.9% of sales performance), construction-related contractors, municipalities, and industrial operators, among others. The company is also advancing its overseas expansion into emerging Asian markets, including India, Indonesia, Sri Lanka, Bangladesh, and China.
Business Model
In the Environmental Equipment-Related Business, the company proposes maintenance contracts as a package at the time of new construction work on septic tanks and wastewater treatment equipment, accumulating continuous stock-type revenue. In the Groundwater-to-Drinking-Water System business, the ESCO Contract structure (the company bears the equipment costs and recovers them through monthly usage fees) results in a substantial improvement in profit margin after 10 years of depreciation. In the Renewable Energy-Related Business, stable earnings are secured through long-term power sales contracts under the Solar Power Business (FIT/PPA) and Wind Power Business (FIT). The Housing Equipment-Related Business combines wholesale sales with construction work, and is driving margin improvement based on its trading relationship with the DCM Group.
Company Strengths
The company possesses a vertically integrated structure that completes development, manufacturing, installation, sales, and maintenance in-house. The number of maintenance contracts has steadily increased, forming the foundation supporting the expansion of the stock business both domestically and internationally. Installation performance in the Environmental Equipment-Related Business reached ¥8,584 million in the current period (up 6.5% year on year).
Sales to DCM Group, the largest home center chain, totaled ¥6,242 million in the current period (12.9% of total sales performance). The company is creating synergies across multiple segments, including rooftop installation of solar power generation equipment (193 sites under FIT, 36 sites under PPA) and expanded new orders in the Comprehensive Building Management Business.
The company has established local subsidiaries in India, Indonesia, Sri Lanka, Bangladesh, China, and Singapore. In Sri Lanka, it received the Presidential Environment Award and obtained Green Label product certification, while in India, its own factory began operations in June 2025. Involvement in the development of water quality regulations with local governments forms a barrier to entry for competitors.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal years, from ¥37,824 million in FY2021 to ¥48,321 million in FY2025. Operating profit had recovered from a trough of ¥660 million in FY2023 to ¥1,272 million in FY2025. However, in Q1 of FY2026 (ending December 2026), while revenue increased to ¥13,276 million (up 3.7% year on year), maintaining top-line growth, operating profit fell sharply to ¥619 million (down 16.6% year on year), ordinary profit to ¥645 million (down 19.9% year on year), and quarterly net profit attributable to owners of the parent to ¥390 million (down 13.6% year on year), with all profit levels declining significantly. The main causes were the drop-off of a large-scale industrial wastewater treatment project in the Environmental Equipment-Related Business and a temporary deterioration in profit due to the application of the cost-recovery method in the Housing Equipment-Related Business. Gross profit margin declined from 23.6% in the same period of the previous year to 21.7%, and the impact of rising raw material and subcontracting costs also continued. The full-year forecast remains unchanged, premised on a recovery in the second half.
Growth Strategy
Three pillars: deepening domestic stock business, transforming overseas operations into growth engines, and concentrated investment in the high-growth renewable energy field
Propose integrated maintenance contracts at the time of new installation work for septic tanks and industrial wastewater treatment equipment, steadily building up the number of contracts. Continue price negotiations with existing contract holders as needed, aiming to improve gross margin by passing through cost increases. In Q1 of FY2026 (ending December 2026), maintenance-related revenue and profit increased, and initiatives are progressing steadily.
Promote material cost reduction and production efficiency improvement through revised manufacturing methods and labor hours in India, establishment of an order-receiving system for factory wastewater treatment in Indonesia, and initiation of local production and efforts to win government projects in Bangladesh. Continue to lobby for the development of water quality regulations in each country. In Q1 of FY2026 (ending December 2026), overall overseas revenue declined due to the drop-off of a large-scale project, but the operating loss amount improved slightly.
Steadily accumulate operating sites with 191 solar power (FIT) sites, 36 solar power (PPA) sites, and 36 wind power (FIT) sites (up 5 sites year-on-year), expanding the stable power sales revenue base. The Green Data Center Business has begun operations at 2 sites and recorded new revenue. In the BDF business, sales channels in the Kanto region are expanding through the opening of the East Japan office (Ibaraki Prefecture) and the start of B5 supply to the Tobu Group. As an external tailwind, the target for expanding the renewable energy ratio under the 7th Strategic Energy Plan is providing support.
In January 2026, transferred the bottled water server business to a newly established spin-off company (Cliclla Ehime Co., Ltd.), concentrating management resources on the fully automatic "Axis Water" system. Build up recurring revenue through increased contract numbers under the subscription model. In Q1 of FY2026 (ending December 2026), the number of Axis Water contracts increased, and the household drinking water business as a whole saw a decline in revenue but an increase in profit.
Last updated: July 17, 2026