BML, INC.
4694・Prime Market・Services
Business
BML Inc. (BML) is a major domestic clinical laboratory testing company founded in 1955, which began its outsourced clinical laboratory testing business in 1967. Its core Testing Business handles over 4,000 test items in blood, immunology, pathology, microbiology, and other areas commissioned by hospitals and clinics. The company also operates BML Food Science, which handles Food & Hygiene Testing Services and food consulting, a Medical Information Systems business providing electronic medical records and other solutions, and Other businesses including Clinical Trial Site Support (SMO) and the Dispensing Pharmacy Business. BML has built its own laboratory network nationwide, covering regional medical institutions widely through 16 consolidated subsidiaries. The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
Specimens are received from medical institutions, tested through a nationwide laboratory network, and results are reported back. Revenue is automatically recorded based on the number of specimens multiplied by unit price, with ongoing transactions with existing customers forming the earnings base. Price optimization (unit price increases) and expansion of testing items through new customer acquisition and deeper sales engagement serve as revenue growth drivers. The Food & Hygiene Testing Services and medical information systems businesses complement earnings.
Company Strengths
The company offers more than 4,000 test items ranging from general tests to specialized and advanced tests, and has built its own laboratory network across the country. The successive commencement of operations at the new BML Research Institute building (operational from January 2025), the new BML Food Science testing building, and the new PCL Japan Tokyo laboratory has realized an expansion of testing capacity sustainable for the next ten years.
Cash flow from operating activities for FY2026 (ending March 2026) was ¥20,715 million (up ¥4,906 million year on year). Cash and cash equivalents reached ¥64,602 million, with net assets of ¥132,129 million and liabilities of ¥51,117 million, indicating high financial soundness. The company has the financial strength to fund capital expenditures with internal funds while also returning capital to shareholders.
The company has obtained ISO15189, a management system certification specialized for clinical laboratories, and thoroughly manages quality control. Through the introduction of advanced genomic analysis devices and collaboration with biotech companies and universities, it has sequentially begun accepting advanced tests such as colorectal cancer methylation detection, IDH1 gene mutation analysis, and conzumab quantitative testing. R&D expenses were ¥320 million (FY2026, ending March 2026).
ENVALITH's Perspective
Performance Trend
Revenue fell sharply from ¥186,067 million in FY2022, the peak of pandemic-related special demand, to ¥137,964 million in FY2024, before recovering for two consecutive periods to ¥143,191 million in FY2025 and ¥150,262 million in FY2026. Operating profit also bottomed at ¥9,167 million in FY2024 and has since trended upward, reaching ¥9,364 million in FY2025 and ¥10,421 million in FY2026. The revenue increase in FY2026 was driven by steady acquisition of new clients and progress in price optimization measures. As an external factor, FY2026 was a non-revision year for the medical fee schedule, meaning there was no reduction in specimen testing prices, which provided a tailwind. On the other hand, increased depreciation expenses associated with the launch of the new BML Research Institute building (January 2025) weighed on profit. The forecast for FY2027 (ending March 2027) calls for revenue of ¥155,000 million (up 3.2%) but net profit of ¥7,000 million (down 9.7%), indicating a revenue increase alongside a profit decline, with absorbing rising costs as a key challenge.
Growth Strategy
Advancing the 9th Medium-Term Management Plan through three pillars: next-generation lab construction, price optimization, and DX promotion
The new BML Research Institute building (operational from January 2025), the new BML Food Science testing building, and the new PCL Japan Tokyo Lab are now operational, establishing a foundation for sustainable testing capacity expansion over the next 10 years. Construction in progress remains at ¥5,785 million as investment continues.
Promoting appropriate pricing for services through dialogue with customers. In FY2026, revenue increased 4.9% year on year through the combined effect of new customer acquisition and price optimization, confirming the effectiveness of these measures. Continued explanation to customers ahead of the next fee schedule revision year is essential.
Planning approximately ¥10.0 billion in DX promotion investment over 10 years. Advancing in parallel the enhancement of customer-facing functions such as the Digital Reporting System (DRS) and electronic medical record integration, alongside fundamental review of specimen collection, result reporting, and billing processes to reduce operational costs.
Developing advanced testing capabilities such as various genomic tests through the introduction of cutting-edge genomic analysis devices and collaboration with biotech companies and universities. Sales of Other testing grew strongly, up 10.2% year on year. Also advancing improved balance among Clinical Laboratory Testing Services, food hygiene, and medical information systems.
In FY2026, conducted share buybacks of ¥5,376 million (versus zero in the prior period) and increased the annual dividend to ¥125 (from ¥120 in the prior period). The FY2027 dividend forecast also maintains ¥125. Working to optimize investment and returns toward achieving the target of ROE of 8.0% or higher.
Last updated: July 19, 2026