OKAYA ELECTRIC INDUSTRIES CO.,LTD.
6926・Standard Market・Electric Appliances
Business
Okaya Electric Industries, founded in 1939, is an electronic components manufacturer whose core business is EMC (electromagnetic compatibility) countermeasures. Its mainstay Capacitor Products and Noise/Surge Suppression Products are deployed for air conditioning equipment, industrial equipment, and automotive-related applications, and the company is organized into four segments together with Display & Lighting Products (including custom products for the defense industry) and Sensor Products. The group structure comprises two domestic and three overseas manufacturing subsidiaries plus four overseas sales subsidiaries, with a sales network spanning Asia (Hong Kong, China, Thailand, Singapore) and North America. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company adopts a build-to-order production system to respond to sharp demand fluctuations while suppressing the occurrence of surplus inventory. Domestic manufacturing subsidiaries (Tohoku Okaya, OSD) and overseas manufacturing subsidiaries (Okaya Hong Kong Limited, Dongguan Okaya Electronics Co., Ltd., OKAYA LANKA) manufacture the products and supply the entire volume to the parent company. This is a vertically integrated model in which overseas sales subsidiaries purchase and sell locally, generating revenue by supplying components to air conditioning, industrial equipment, and automotive-related manufacturers.
Company Strengths
The company holds a product lineup that allows it to provide Capacitor Products, Noise Filter Products, Surge Protection Products, Display & Lighting, and Sensor Products all under one roof. By leveraging synergies between its Capacitor Products business and its Noise/Surge Suppression Products business, it can propose integrated EMC countermeasures, offering customers composite solutions from the design stage onward—a key differentiator versus competitors.
In FY2026 (ending March 2026), the company achieved multiple new product launches and standards certifications, including completion of overseas safety standard certification and transition to mass production for next-generation capacitors (High-Temperature/High-Humidity Resistant), acquisition of North American SCCR certification (for Noise Filter Products and Surge Protection Products), and commercialization of common mode choke coils using flat copper wire. R&D expenses totaled ¥258 million, confirming ongoing efforts in technology development.
The company operates manufacturing bases at two domestic companies and three overseas companies (Hong Kong, China, and Sri Lanka), with sales bases in Hong Kong, Thailand, Singapore, and the United States. In particular, sales of air conditioning equipment-related products in Thailand, Hong Kong, and China recovered to over 107% year-on-year in FY2026 (ending March 2026), demonstrating that the sales network in Asian markets is functioning effectively as evidenced by actual results.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥17,109 million in FY2023 (ended March 2023) before falling sharply, but turned to a bottoming-out/recovery trend in FY2026 (ending March 2026), reaching ¥10,229 million (up 6.6% year on year). By segment, Capacitor Products (121% of the prior period), Noise/Surge Suppression Products (107%), and Sensor Products (133%) saw increased revenue, while Display & Lighting Products (78%) declined due to lower demand from the defense industry. Operating loss stood at ¥1,738 million, only a slight improvement from the prior period (¥1,749 million), as rising raw material procurement costs and one-time expenses related to new product launches hindered earnings recovery. The recording of an impairment loss of ¥90 million (versus ¥15 million in the prior period) also weighed on profits. An operating loss of ¥540 million is forecast for FY2027 (ending March 2027) as well, with a full-fledged earnings recovery contingent on progress under the 12th Medium-Term Management Plan.
Growth Strategy
Under the 12th Medium-Term Management Plan, the company is rebuilding its earnings base in EMC countermeasures, pursuing fixed-cost reductions and new product expansion as twin pillars
Commencing April 2026. Aiming to become a 'partner for noise/surge countermeasures,' the company will rebuild a robust management foundation by strengthening earnings power and corporate functions. It will pursue a fundamental business review centered on revenue recovery and profitability improvement.
Continuing thorough reduction of fixed costs and product price revisions. In FY2026 (ending March 2026), these measures were insufficient to offset rising raw material procurement costs and increased new product launch expenses, but the company plans to continue strengthening its cost improvement efforts. It has secured near-term operating funds through financing from financial institutions.
The company is reinforcing production lines to support the supply of new Capacitor Products and Noise/Surge Suppression Products, while also promoting productivity improvements through reorganization of existing production lines. Strengthened collaboration between the Sales Division and the Technology Division will further enhance EMC countermeasure proposal capability by leveraging its extensive product lineup.
In FY2026 (ending March 2026), the company sold a portion of its cross-shareholdings, recording a gain on sale of investment securities of ¥200 million. The balance of investment securities stood at ¥2,498 million (up from ¥2,122 million in the previous fiscal year), and there remains room for further asset utilization to maintain the financial foundation.
Last updated: July 19, 2026