NIPPON KAYAKU CO.,LTD.
4272・Prime Market・Chemicals
Business
The Nippon Kayaku Group traces its roots to an industrial explosives manufacturer founded in 1916, and is now a global chemical group comprising 37 subsidiaries and 10 affiliated companies, centered on three business domains: Mobility & Imaging, Fine Chemicals, and Life Science. Its main products include automotive safety components such as Airbag Inflators and Micro Gas Generators, functional materials, dye materials, and catalysts for semiconductors and AI applications, and new drugs, biosimilars, and agrochemicals in the oncology field, with manufacturing and sales bases in Japan, Europe, China, North America, and Southeast Asia. Consolidated net sales for FY2026 (ending March 2026) reached a record high of ¥241,851 million.
Business Model
The company employs a manufacturing and sales model centered on its proprietary pyrotechnic technology, functional chemical technology, and pharmaceutical development technology, producing high value-added products in each business domain for sale to automakers, semiconductor-related companies, medical institutions, and others. In the Pharmaceuticals Business, the company expands its pipeline through in-licensing of external technologies, while in the Agro business, it supplements earnings by expanding sales of proprietary agrochemicals it develops for overseas markets. The company invests approximately ¥12.5 billion annually in R&D to maintain and enhance product competitiveness through technological innovation.
Company Strengths
Built a system to manufacture and sell Airbag Inflators, Micro Gas Generators, and Squibs at overseas bases in the Czech Republic, China, Mexico, Malaysia, South Korea, and the United States. In FY2026 (ending March 2026), sales in the Mobility & Imaging Business Domain, including the Safety Systems Business, increased 3.7% year on year to ¥94,714 million, driven by strong performance in sales to local Chinese manufacturers.
The company holds a cancer-focused portfolio comprising a lineup of new drugs including the antineoplastic agents "Ibtrozi®," "Portrazza®," "Darvias®," and "Alaglio®," as well as antibody biosimilars "Bevacizumab BS" and "Adalimumab BS," and generic drugs such as "Lenalidomide Capsules." In FY2026 (ending March 2026), segment profit in the Life Science Business Domain increased 52.3% year on year to ¥9,680 million.
The company develops and manufactures in-house functional materials such as epoxy resins, maleimide resins, resists for MEMS, and cleaners for semiconductors, as well as dye materials such as thermal color developers, industrial inkjet inks, and materials for image sensors. In FY2026 (ending March 2026), sales in the Fine Chemicals Business Domain increased 12.0% year on year to ¥74,142 million, and segment profit increased 20.5% year on year to ¥11,929 million.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal periods, from ¥184,805 million in FY2022 (ended March 2022) to ¥241,851 million in FY2026 (ending March 2026). After operating profit plunged to ¥7,337 million in FY2024 (ended March 2024), it staged a V-shaped recovery to ¥20,401 million in FY2025 (ended March 2025), and improved further to ¥22,454 million in FY2026 (ending March 2026). Profit attributable to owners of parent stood at ¥24,641 million, the highest level over the past five fiscal periods. As external factors, the recording of a foreign exchange gain of ¥1,674 million and a gain on sale of investment securities of ¥9,431 million pushed up ordinary profit and net income. On the other hand, in the Mobility business, rising raw material costs are squeezing profits, and attention should be paid to the quality of the company-wide profitability improvement. For FY2027 (ending March 2027), the company forecasts revenue of ¥260,600 million and operating profit of ¥25,400 million, but expects net income to decline to ¥22,300 million due to the drop-off of extraordinary gains.
Growth Strategy
In preparation for the next mid-term plan following the completion of KV25, the company is pursuing product expansion and capital investment across its three business domains while also implementing proactive shareholder returns
In addition to expanding sales of Airbag Inflators, MGGs, and Squibs, the company is focusing on R&D for new products leveraging its explosives-based technology. Sales to Chinese local manufacturers performed well, and results for FY2026 (ending March 2026) exceeded those of the previous fiscal year. Although there was some impact from US tariff policy, steady global automobile production provided support.
The company is advancing the development and sales expansion of high-functionality resins for substrates and encapsulation used in 5G/6G, AI servers, and data centers, epoxy resins for carbon fiber reinforced plastics, and cleaners for semiconductors. In FY2026 (ending March 2026), segment sales increased 12.0% year on year and segment profit increased 20.5% year on year, achieving notable results. Sales of new products such as dichroic dyes for smart glass also commenced.
The company is promoting market penetration of the new drugs "Ibtrozi®," "Portrazza®," "Darvias®," and "Alaglio®," and expanding its oncology-related product lineup, including antibody biosimilars and distinctive generic pharmaceuticals. Segment profit for FY2026 (ending March 2026) improved significantly, up 52.3% year on year to ¥9,680 million. Segment assets expanded to ¥104,101 million, the largest of the three business domains, laying the groundwork for future earnings.
Under the target of a dividend payout ratio of 40% or more during the KV25 period, the company implemented an annual dividend of ¥66.00 per share for FY2026 (ending March 2026) (payout ratio of 40.9%). In addition to share buybacks of ¥16,581 million, the company resolved, as a subsequent event, to conduct additional buybacks of up to ¥15,000 million and to cancel 11,300,000 shares. The company aims to improve EPS and enhance share value by reducing the total number of issued shares.
Last updated: July 19, 2026