Techno Smart Corp.
6246・Standard Market・Machinery
Business
Techno Smart Corp. is an industrial machinery manufacturer founded in 1912 (formerly Inoue Metal Industry), which changed to its current company name in 2012. Its core products are coating and drying systems that impart functional properties to base materials such as films, metal foils, and paper, and the company designs, manufactures, and installs various dryers, heat treatment equipment, chemical processing equipment, and other industrial machinery. Its main customers are leading-edge industrial companies, including manufacturers of optical films for smartphones, tablets, and LCD TVs, manufacturers of lithium-ion batteries for automotive use, and manufacturers of functional films. All products are made to order on a one-of-a-kind basis, and the company operates domestically and internationally from its Osaka head office and Shiga plant. In FY2026 (ending March 2026), the export ratio reached 54.3%, reflecting a business structure well positioned to capture global demand.
Business Model
All products are manufactured on a build-to-order basis with special specifications. As a specialist group in coating and drying technology, the company provides integrated support from design through installation in response to customer needs for "products they want to create." The company adopts a fund management approach in which advance payments are received at the time of contract, with accounts receivable collected in stages at trial operation and acceptance inspection. The order backlog serves as a leading indicator for the following period's sales, and the order backlog as of the end of FY2026 (ending March 2026) reached ¥23,703 million.
Company Strengths
Since its founding in 1912, the company has specialized for over 100 years in the design and manufacture of coating and drying equipment. It has continuously provided made-to-order production tailored to each customer for a wide range of advanced industries, including optical films, functional films, and energy-related applications, building deep technical trust with customers through joint development and strict confidentiality practices. The accumulated technical expertise, difficult for competitors to replicate in a short period, forms the core of the company's strength.
Gross profit margin improved for three consecutive fiscal periods, rising from 18.9% in FY2024 (ending March 2024) to 22.3% in FY2025 (ending March 2025) and 24.4% in FY2026 (ending March 2026). Company-led initiatives such as process efficiency improvements, subcontractor management, and specification standardization have proven effective. Even in FY2026 (ending March 2026), when net sales declined slightly, gross profit increased 5.0% year on year to ¥5,058 million.
In March 2025, a new test building was constructed within the Shiga Plant, and three test machines began operation. This has enabled swift response to customer requests for advanced technology testing, strengthening the ability to secure testing schedules and verify new products and new technologies. This has established a joint verification framework with customers that is expected to lead to order opportunities over the medium to long term.
ENVALITH's Perspective
Performance Trend
Revenue increased for four consecutive periods, from ¥16,939 million in FY2022 (ended March 2022) to ¥21,579 million in FY2025 (ended March 2025), but in FY2026 (ending March 2026) it fell to ¥20,737 million (down 3.9% year on year), marking the first decline. Operating profit also fell sharply to ¥2,971 million (down 15.4% year on year), and net profit attributable to owners of the parent declined to ¥1,792 million (down 25.1% year on year). The main external factor was a sharp 23.8% year-on-year drop in Energy-Related Equipment sales due to slowing demand in the EV market. In addition, selling, general and administrative expenses surged 60.1% year on year to ¥2,087 million, offsetting the effect of improved gross profit margin (24.4%, versus 22.3% in the previous period). On the other hand, operating cash flow improved significantly to ¥5,074 million (versus -¥1,532 million in the previous period), and cash and cash equivalents at period-end increased to ¥10,410 million (versus ¥6,896 million in the previous period). The financial structure was strengthened, with the equity ratio rising to 68.1% (versus 60.2% in the previous period).
Growth Strategy
Growth strategy centered on accumulating orders in the functional film and semiconductor fields, and deepening technology development through utilization of the new laboratory building
Orders received in FY2026 (ending March 2026) surged to ¥10,250 million (up 206.1% year on year), with order backlog reaching ¥9,979 million (up 89.1% year on year). By capturing demand for optical films used in smartphones, tablets, and notebook PCs, this business is expected to become a core driver of sales in the next fiscal period.
Orders received in FY2026 (ending March 2026) rose sharply to ¥745 million (up 362.0% year on year), with order backlog reaching ¥1,297 million (up 56.0% year on year). Through joint verification with customers utilizing three test machines in the new laboratory building, the company aims to accelerate expansion into new customers and new applications.
Three test machines have been installed in the new laboratory building, which began operations in March 2025, strengthening the company's capability to respond to customer testing needs. The company is working on the development of high-speed coating equipment and automatic control technology, and aims to create medium- to long-term order opportunities through joint verification with customers.
Due to a slowdown in the EV market, orders received for Energy-Related Equipment fell sharply to ¥1,154 million (down 61.9% year on year). The company continues joint research and development with customers on automotive lithium-ion batteries and all-solid-state batteries, preparing to capture orders once demand recovers and investment resumes. In parallel, the company is also pursuing new applications such as energy storage for data centers.
While strengthening shareholder returns with a projected dividend of ¥92 per share and a payout ratio of 75.3% for FY2027 (ending March 2027), the company is pursuing growth investment leveraging its financial base, which includes an equity ratio of 68.1% and cash and cash equivalents of ¥10,410 million. The company aims to restore profitability through operational efficiency improvements, cost reductions, and securing production volume.
Last updated: July 19, 2026