Osaki Electric Co., Ltd.
6644・Prime Market・Electric Appliances
Business
Osaki Electric Co., Ltd., founded in 1937, is a manufacturer of electricity meters listed on the Prime Market of the Tokyo Stock Exchange. Domestically, the company's core business is the manufacture and sale of electricity meters and smart meters, alongside solutions businesses such as switchboards & distribution boards, smart locks, and energy management services. Overseas, through the EDMI Group (headquartered in Singapore), the company sells smart meters and upstream systems in Oceania, the UK, the Middle East, and Africa. Major customers include domestic power companies (Kansai Transmission and Distribution Co., Inc., the largest customer, accounting for approximately 19.5% of net sales) and overseas power utilities. The group consists of the company and 25 subsidiaries, and upholds the purpose of "making the invisible visible, creating new value for society."
Business Model
Domestically, the core of earnings is the large-volume order intake, manufacturing, and sale of smart meters for electric utilities, with continuous demand for replacements from 1st Gen to 2nd Gen supporting steady sales. Overseas, the EDMI Group, mainly through build-to-forecast production, bundles meters with upper-level systems for sale to government agencies and electric utilities in various countries, accumulating solution revenue. The Real Estate Business provides a complementary source of stable, high-margin earnings (operating margin of 48.1%) through the leasing of assets held by the Group.
Company Strengths
Since beginning production of electricity meters in 1948, the company has built up a strong supply track record with major domestic electric power companies. In FY2026 (ending March 2026), sales in the Domestic Metering & Control Business totaled ¥59,732 million, with Kansai Transmission and Distribution alone accounting for ¥19,657 million (19.5% of total company sales). The company has completed capital investment in production facilities for Smart Meters (1st Gen / 2nd Gen) (¥4,155 million in FY2026) and has begun deliveries to all power companies nationwide.
R&D expenses in FY2026 (ending March 2026) totaled ¥2,846 million (¥1,219 million domestic, ¥1,627 million overseas). Domestically, the company is advancing new technology development including DC metering, AIoT, and the battery utilization solution "SmaRe:C." Overseas, the company has developed the next-generation smart meter "NEOS" and has consolidated its product development structure in Australia to enable the provision of high-value-added solutions through next-generation wireless technology support and edge intelligence.
At the end of FY2026 (ending March 2026), the equity ratio stood at 56.9% (up 5.0 percentage points year on year), and the interest-bearing debt to operating cash flow ratio declined to 0.3 years, significantly strengthening the financial base. ROE reached 10.6%, achieving the medium-term management plan target of 10%. The company implemented capital efficiency improvements through the sale of cross-shareholdings and real estate, resolving the sub-1x PBR issue with a PBR of 1.31x.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal years, rising from ¥76,184 million in FY2022 (ended March 2022) to ¥100,900 million in FY2026 (ending March 2026), surpassing ¥100,000 million for the first time. Operating income temporarily declined slightly in FY2025 (ended March 2025) (from ¥5,874 million to ¥5,701 million), but recovered and expanded to ¥6,526 million in FY2026 (ending March 2026). Net income for the period rose sharply to ¥5,777 million from ¥3,504 million in the previous fiscal year, marking the highest level in the past five fiscal years. The full-scale rollout of Smart Meters (1st Gen / 2nd Gen) is believed to have driven the domestic business. Note that, following the correction dated May 21, 2026, cash flow from financing activities was revised to ¥-8,807 million (previously ¥-5,828 million), but the fiscal year-end balance of cash and cash equivalents remained unchanged at ¥18,408 million (versus ¥13,085 million in the previous fiscal year), and the company's cash-generating capability remains robust.
Growth Strategy
Aiming for FY2027 (ending March 2027) operating profit of ¥9,000 million through 2nd-generation smart meters, GX/DX solutions, and higher value-added overseas operations
Full-scale deployment of 2nd-generation Smart Meters (1st Gen / 2nd Gen) for domestic power utilities will begin from FY2026 (ending March 2026). This key initiative aims to capture new demand and replacement demand from the existing customer base, driving growth in revenue and profit for the Domestic Metering & Control Business.
The company will expand Energy Management System (GX Service) offerings to new customers in other industries, and alongside expanded adoption of Smart Lock in rental housing and corporate offices, will promote diversification of solution revenue streams.
Within the EDMI group, the company will promote bundled sales of smart meters and upstream systems, and aim to improve operating margin through the introduction of next-generation meters and next-generation Industrial Meters combined with organizational restructuring to reduce selling, general and administrative expenses.
The company has set medium-term targets of ¥100,000 million in net sales and ¥9,000 million in operating profit. The net sales target was already achieved in FY2026 (ending March 2026); improving profitability in both the domestic and overseas businesses remains a challenge toward achieving the ¥9,000 million operating profit target.
Last updated: July 19, 2026