ENVALITH
トーソー株式会社 logo

TOSO CO.,LTD.

5956・Standard Market・Metal Products

Official website
トーソー株式会社 logo
TOSO CO.,LTD.5956

Business

Toso Co., Ltd. is a company founded in 1949 that specializes in interior decoration-related products, developing, manufacturing, and selling Curtain Rails, Interior Blinds, Roll Screens, Roman Shades, Accordion Partitions, and other products. Domestically, the company sells mainly to the residential market through its distributor network, while also expanding into non-residential fields such as accommodation facilities and medical facilities. It has manufacturing subsidiaries in Indonesia and China, and also engages in overseas sales centered on Asia. The Interior Decoration Business accounts for over 90% of consolidated net sales, with the remainder consisting of a small-scale business handling Canes and Other Welfare Products. Listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

Products manufactured at domestic factories (Tsukuba, Mitsukaido, Hyogo) and manufacturing subsidiaries in Indonesia and China are combined with purchased goods from Japan and overseas, and sold to the residential and non-residential markets through distributors. The company is pursuing profit margin improvement through the twin approaches of price revisions and cost reduction activities, with the gross profit margin for FY2026 (ending March 2026) reaching 41.3% (40.6% in the previous period). Capital expenditure was ¥668 million and R&D expenses were ¥123 million, aimed at creating demand through new product launches and transitioning to a high-profitability structure.

Company Strengths

With over 70 years of product development history since the launch of the C-type metal curtain rail in 1953, the company offers a wide range of products including curtain rails, blinds, and partitions. In FY2026 (ending March 2026), it successively launched the IoT-compatible electric curtain rail "Legato Como," the partition-dedicated rail for non-residential use "Furo," and the indoor clothesline "Laundry Bar LB-1," capturing demand in both the residential and non-residential markets.

Through P.T. Toso Industry Indonesia, established in 1988, and Toso Window Fashion (Shanghai) Co., Ltd., established in 2002, the company has built a division-of-labor structure between domestic factories and overseas bases. By combining domestic and overseas production and procurement, it maintains cost competitiveness, and consolidated production results for FY2026 (ending March 2026) increased 103.9% year on year.

At the end of FY2026 (ending March 2026), the equity ratio stood at 68.3% (66.2% at the previous fiscal year-end) and the current ratio at 291.3% (266.1% at the previous fiscal year-end), indicating high financial soundness. Against total assets of ¥23,070 million, net assets of ¥15,850 million were secured, with cash and cash equivalents of ¥4,099 million. The company has low reliance on interest-bearing debt and sufficient financial flexibility to fund capital expenditures and shareholder returns from its own resources.

ENVALITH's Perspective

In FY2026 (ending March 2026), operating profit reached ¥955 million (up 28.0% year on year) and net income attributable to owners of the parent reached ¥671 million (up 34.2%), achieving substantial profit growth. Gross profit margin improved to 41.3%, and ROE rose to 4.4% (from 3.4% in the prior period). However, this still falls short of the targeted 6% level, and the sustainability of profit growth and acceleration of capital efficiency improvement remain the ongoing focus.

In FY2026 (ending March 2026), new housing starts declined significantly due to the backlash from front-loaded demand ahead of the revisions to the Building Standards Act and the Building Energy Efficiency Act. As an external factor, the medium- to long-term contraction trend in the housing market is unavoidable, and it is a concern that management itself has acknowledged that the non-residential segment and overseas sales—pillars of the growth strategy—have "struggled to grow." The forecast for FY2027 (ending March 2027) shows operating profit of ¥850 million (down 11.0% year on year), a profit decline outlook, indicating a risk that the backlash from the strong housing market and structural challenges will become apparent.

In FY2026 (ending March 2026), a product compensation loss of ¥140 million was recorded as an extraordinary loss (zero in the prior period), putting pressure on income before income taxes and other adjustments. Although the impact on final net income was limited due to a reversal in deferred income tax adjustments (-¥148 million), this emergence of product quality risk warrants continued attention. The consolidated financial forecast for FY2027 (ending March 2027) projects net sales of ¥23,500 million (+1.1%), operating profit of ¥850 million (-11.0%), and net income of ¥560 million (-16.6%), a profit decline outlook, with dividends also expected to be reduced from ¥15.50 to ¥13.00. The upside potential in terms of valuation appears limited.

Growth Strategy

In the third phase of Vision2025, the company is pursuing diversification into non-residential, overseas, and new business areas while shifting toward a high-profitability structure

New products such as the electric curtain rail "Legato Como," wood blinds, and vertical blinds were aggressively introduced, and sales in the housing market progressed favorably. Expansion continued through the "TOSO Lab." exhibitions held in 19 cities nationwide and participation in major architectural trade shows. In FY2026 (ending March 2026), Interior Decoration Business sales reached ¥22,770 million (up 2.1% year on year).

The company rolled out non-residential products such as the partition-dedicated curtain rail "Flow," and results for lodging facilities and food service businesses exceeded the previous year. However, management assessed the non-residential field as a whole as having "struggled to grow," leaving full-scale sales contribution from FY2027 (ending March 2027) onward as a challenge.

The company holds overseas bases in Indonesia and Shanghai and is promoting sales expansion in Asian markets. Management noted that overseas sales "struggled to grow" in FY2026 (ending March 2026), and the business also carries foreign exchange rate risk. The overseas ratio of tangible fixed assets (Indonesia + Shanghai) is approximately 10%. While positioned as a medium- to long-term growth driver, progress has been slow.

Continuous cost reduction activities have been promoted as a key measure under Vision2025. In FY2026 (ending March 2026), the gross profit margin improved to 41.3% (from 40.6% in the previous period), and combined with the synergy from price revisions, the operating profit margin reached 4.1% (from 3.3% in the previous period). The company will continue to thoroughly reduce total costs and aims to reach the ROE target of 6% (currently 4.4%).

In the Canes and Other Welfare Products business, sales of ¥482 million (up 0.3% year on year) were secured through the acquisition of new business partners, but segment profit fell sharply to ¥17 million (down 45.9% year on year) due to foreign exchange effects and rising personnel costs. Application development beyond windows, such as the indoor clothesline "Laundry Bar LB-1," is also being promoted, but its profit contribution remains limited.

Last updated: July 19, 2026