TACHI-S CO.,LTD.
7239・Prime Market・Transportation Equipment
Business
TACHI-S Co., Ltd., founded in 1954, is a specialty manufacturer of Automotive Seats and Seat Components, listed on the Prime Market of the Tokyo Stock Exchange. The Group comprises 26 consolidated subsidiaries and 8 affiliated companies, and operates across five segments: Japan, North America, Latin America, China, and Southeast Asia. Major customers include Nissan Mexicana (18.1% of net sales), Mitsubishi Motors Corporation (15.7%), and Honda Motor Co., Ltd. (10.3%), with a business model of direct delivery to automakers. Consolidated net sales for FY2026 (ending March 2026) were ¥269,009 million. As a subsequent event, the company resolved to make the TOYO H&I Group a subsidiary, aiming for a significant expansion of its business scale.
Business Model
The company functions as a Tier-1 supplier, receiving orders from automakers on a model-by-model basis and producing seats and seat components at manufacturing bases in each region for direct delivery. Because delivery lead times are extremely short, the company does not manage order backlogs, and its revenue structure is demand-linked, moving in tandem with customers' production plans. By deploying core technologies and standard frames established in Japan on a global basis, the company achieves greater development efficiency and lower costs, while development bases in each region build a complementary structure that responds to local customer needs.
Company Strengths
The company has manufacturing and sales bases across five segments—Japan, North America, Latin America, China, and Southeast Asia—with development bases established in Michigan (US), Mexico, China, and Vietnam. It has built a system in which core technologies are established and standardized at Japan's Technology and Manufacturing Center and then deployed globally, with total sales for FY2026 (ending March 2026) reaching ¥269,009 million.
The company has developed highly versatile, lightweight, low-cost standard frames that can be commonly used across a wide range of vehicle models globally, with adoption track records in Japan, China, and Mexico. Its proposal capability as a "Global Seat System Creator" able to propose entire seat systems as a package has led to customer adoption, with production launch track records for new models such as the N-ONE e for Honda Motor Co., Ltd. and the IM LS9 for SAIC Motor.
After recording an operating loss of ¥4,203 million in FY2022 (ended March 2022), the company promoted cost reductions, profitability improvements in unprofitable businesses, and fixed-cost optimization. Operating profit for FY2026 (ending March 2026) improved for the fourth consecutive period to ¥11,604 million (operating margin of 4.3%), with the North America and China segments also turning profitable. Cash flow from operating activities also improved to ¥135,830 million (up 39.1% year on year), enhancing the company's cash generation capability.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥292,947 million in FY2024 (ended March 2024) and has declined for two consecutive periods, falling to ¥269,009 million in FY2026 (ending March 2026), down 5.7% year on year. The main cause was a 50.6% year-on-year decline in China segment revenue (including the effect of deconsolidation). Meanwhile, operating profit improved for five consecutive periods, rising from a loss of ¥4,203 million in FY2022 (ended March 2022) to ¥11,604 million in FY2026 (ending March 2026). While external factors such as yen depreciation (assumed at ¥152 to the US dollar) boosted the yen-converted value of overseas earnings, improvement in the cost-of-sales ratio and profitability across all segments underpin the structural shift in earnings. Operating cash flow improved substantially to ¥13,583 million (versus ¥9,764 million in the previous period), and the equity ratio rose to 61.6% (versus 56.0% in the previous period).
Growth Strategy
Under TVE Wave2, the company aims for revenue of approximately ¥400 billion by fiscal year 2030, centered on the three pillars of 'deepening, evolving, and creating new' (Shinka).
On April 10, 2026, the Board of Directors resolved to acquire shares of the TOYO H&I Group, which includes Toyo Seat, Toyo Seat USA, Nanjo Soubi Industry, and others. By making the holding company established through an absorption-type company split a subsidiary, the company aims to expand the scale of its seat and interior business and strengthen its customer base. The financial impact is currently under review and has not been incorporated into the FY2027 (ending March 2027) forecast.
Under the medium-term management plan TVE Wave2, the acquisition of new customers in India has been achieved as a result, driving the establishment of a business foundation in emerging markets. This is positioned as part of the effort to secure new orders toward raising revenue to approximately ¥400 billion by fiscal year 2030.
The concept model 'Smart Shell,' which offers new experiential value through private space and immersion, was exhibited at the 2025 Automotive Engineering Exposition (Jin to Kuruma no Technology Ten) and received favorable reception. This is positioned as a concrete achievement of the 'Evolving' strategy, which proposes new value in Automotive Seats.
As part of the 'Creating New' strategy to develop a new business following the Automotive Seats business, the company is at the stage of narrowing down candidate business areas and examining market entry. Specific business names, scale, and timing have not been disclosed at this time.
Under the policy of maintaining and enhancing the earnings improvement achieved through TVE Wave0/1, the company achieved profitability across all five segments in FY2026 (ending March 2026). For FY2027 (ending March 2027), operating profit is forecast at ¥12,000 million (up 3.4% year on year), and the company will continue its shareholder return policy of a minimum dividend of ¥103.8 and a total return ratio of 50% or more.
Last updated: July 19, 2026