ELAN Corporation
6099・Prime Market・Services
Business
Eran Corporation is a company that provides the "CS Set," a combination of rental clothing and towels with laundry service and provision of daily necessities, to hospital inpatients and residents of nursing care health facilities, special elderly nursing homes, and similar facilities. Founded in 1995, the company listed on the Tokyo Stock Exchange Mothers market in 2014 and transitioned to the Prime Market in 2022. In October 2024, M3, Inc. became its parent company. Through a nationwide network of 30 branch offices and sales offices, the service has been introduced at 2,830 facilities (as of the end of December 2025). The daily-rate pricing system provides users with the convenience of being able to be hospitalized or admitted to a facility "empty-handed," building a win-win ecosystem that includes hospitals, facilities, and linen supply operators.
Business Model
Eran introduces the CS Set (Care Support Set) to hospitals and nursing care facilities, collecting usage fees from users on a daily-rate basis according to the number of days of hospitalization or admission. Laundering of clothing and towels is outsourced to linen supply vendors, while daily necessities are supplied via distributors. The company pays outsourcing commissions to facilities, while maintaining a stock-type revenue structure in which sales accumulate as the number of users increases. Net increases in the number of facilities where the service is introduced (an increase of 260 facilities in the current period) are the primary driver of sales growth.
Company Strengths
Revenue grew from ¥31,636 million in FY2021 to ¥55,449 million in FY2025, achieving five consecutive periods of revenue growth. In the current period, 359 new facilities were acquired against only 99 cancellations, resulting in a net increase of 260 facilities and a cumulative total of 2,830 introduced facilities. This accumulation of facilities forms the foundation for stock-type recurring revenue.
As of the end of December 2025, the company operates 30 branches and sales offices nationwide. In the current period, a new Kobe branch was established to cover the western Kinki region. On the logistics side, the Kansai Logistics Hanshin TC was also established, reflecting planned nationwide network development in both sales and logistics.
In October 2024, M3, Inc. became the parent company, enabling the use of the group's IT and DX expertise to improve operational efficiency and strengthen sales capabilities. The SG&A ratio for the current period declined by 1.3 percentage points year-on-year to 13.7%, reflecting the effects of improved cost management.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years grew from ¥31,636 million (FY2021) to ¥55,449 million (FY2025), maintaining an average annual growth rate exceeding 15%. In 1Q FY2026, revenue reached ¥14,762 million (up 9.9% year on year), operating profit was ¥1,441 million (up 21.9% year on year), ordinary profit was ¥1,410 million (up 20.0% year on year), and quarterly profit attributable to owners of the parent was ¥949 million (up 18.7% year on year), achieving double-digit growth at every profit level. A change in accounting treatment for the Original Patient Wear (from inventory items to tangible fixed assets, depreciated using the straight-line method over 3 years) contributed to an improvement in the gross profit margin. As an external factor, the progression of population aging (the population aged 65 and over stood at 36.19 million, or 29.5% of the total population as of April 2026) is providing a tailwind for market expansion. The full-year forecast (revenue of ¥60,800 million, operating profit of ¥5,000 million) remains unchanged, with 1Q progress rates tracking steadily at 24.3% for revenue and 28.8% for operating profit.
Growth Strategy
Pursuing mid-to-long-term growth along four axes: domestic facility expansion, price pass-through, DX promotion, and overseas expansion
Leveraging a nationwide sales network of 30 locations, the company continues to acquire new contracts with hospitals and nursing care facilities. In 1Q FY2026, 70 new facilities were added against 44 cancellations, resulting in a net increase of 26 facilities, bringing the cumulative number of facilities to 2,856 at quarter-end. Against the backdrop of market expansion driven by an aging population, the company aims to expand recurring revenue by accumulating facility numbers.
Previously, the Original Patient Wear "lifte" was recorded as "supplies" and expensed in full at the time of issuance. From 1Q FY2026, it has been capitalized as a tangible fixed asset and depreciated on a straight-line basis over three years. The resulting smoothing of costs has become evident in improved gross profit margin, with the 1Q FY2026 gross profit margin improving to 23.0% (from 22.3% in the same period of the previous year).
The company continues to promote DX and strengthen sales capabilities by leveraging the M3 Group's healthcare IT infrastructure. Through digitalization and efficiency improvements in facility-oriented services, the company aims to enhance competitiveness both in deepening relationships with existing facilities and in developing new ones.
Overseas expansion has begun in earnest with the consolidation of two Vietnamese subsidiaries. However, in 1Q FY2026, an investment loss of ¥40 million was recorded under the equity method, and building a business foundation for profitability remains a challenge. Foreign exchange fluctuation risk also requires close monitoring as a factor affecting ordinary profit.
Last updated: July 17, 2026