F.C.C.CO.,LTD.
7296・Prime Market・Transportation Equipment
Business
F.C.C. Co., Ltd. was founded in 1939 as a manufacturer of functional components for transportation equipment, primarily engaged in the manufacture and sale of Motorcycle Clutches, Automobile Clutches, and EV/CASE Domain Products (Laminated Motor Cores, etc.). The company comprises the parent company, 22 subsidiaries, and 1 affiliated company, with production and sales sites in India, Indonesia, Thailand, Vietnam, the Philippines, China, Taiwan, the United States, Mexico, and Brazil. Major customers include leading vehicle manufacturers such as Ford Motor Company (20.1% of revenue), General Motors Company (9.2%), and Honda Motor Co., Ltd. (3.8%), and the company holds a market share of over 70% in the Indian motorcycle market. In recent years, the company has also been cultivating a Non-Mobility Business in the Environment & Energy Field Products & Services area.
Business Model
The company handles everything from R&D to production and sales of wet and dry friction materials, its core technology, operating a BtoB model that delivers directly to vehicle manufacturers in each market through a local production system. The Motorcycle Business (revenue of ¥124,691 million) and the Automobile Business (revenue of ¥135,975 million) form the pillars of earnings, with continued investment of ¥8,513 million in R&D expenses and ¥16,451 million in capital expenditure to maintain and expand technological and production capabilities. The Non-Mobility Business is currently in an investment phase, positioned to drive future revenue diversification.
Company Strengths
Maintains a market share of over 70% in the Indian market through FCC CLUTCH INDIA PRIVATE LIMITED. In FY2026 (ending March 2026), Motorcycle Business revenue was ¥124,691 million (up 3.6% year on year), steadily capturing growing demand in India. The company has also made early investments in the EV domain, having already started mass production of Laminated Motor Cores in India.
The company operates manufacturing sites in the United States, Mexico, India, Indonesia, Thailand, Vietnam, the Philippines, China, Taiwan, and Brazil, diversifying region-specific risk. Of the ¥16,451 million in capital expenditure in FY2026 (ending March 2026), investment to expand capacity in India, Vietnam, and Indonesia continued, building a production base capable of responding promptly to rising demand in the Global South.
As of the end of FY2026 (ending March 2026), equity stood at ¥206,299 million and cash and cash equivalents at ¥71,360 million. Operating cash flow secured ¥22,779 million, which covered capital expenditure of ¥16,451 million and dividends of ¥8,131 million while still increasing cash on hand. This sound balance sheet supports both growth investment and shareholder returns.
ENVALITH's Perspective
Performance Trend
Revenue continued to grow in FY2026 (ending March 2026), reaching ¥260,836 million (up 1.6% year on year), but the growth rate slowed from 6.8% in the previous period. External factors such as yen appreciation (USD/JPY at 150.78 yen, versus 152.58 yen in the previous period) and reduced purchasing due to Vietnam's gasoline motorcycle regulations acted as headwinds, while increased sales of Motorcycle Clutch in India and Brazil and increased sales of Automobile Clutch in North America provided support. Operating profit continued to increase, reaching ¥18,927 million (up 9.2% year on year), and the operating profit margin improved to 7.3% (from 6.8% in the previous period). Reductions in selling, general and administrative expenses (from ¥31,588 million in the previous period to ¥29,639 million in the current period) contributed significantly to the improvement in profit. The provision for product warranties increased to a period-end balance of ¥9,099 million (from ¥7,358 million in the previous period), and trends in quality-related expenses continue to warrant close attention.
Growth Strategy
Using core clutch profitability as a funding source to transform the business portfolio toward EV/CASE and Non-Mobility Business
Aiming to maximize profitability by deploying high value-added technology while maintaining a market share of over 70% in India. In Brazil, revenue increased 16.3% year on year in FY2026 (ending March 2026), with continued growth in emerging markets.
Promoting new business development in the EV/CASE domain within the Motorcycle Business and Automobile Business. Aiming to start mass production of Laminated Motor Cores in India and Indonesia, and to secure e-Axle (Electric Power Unit) orders through a capital and business alliance with Vietnam's DAT BIKE. R&D expenses for FY2027 (ending March 2026) are planned at ¥9,600 million (an increase of ¥1,354 million year on year), continuing aggressive investment.
Progressing with the start of mass production of Ceramic Setter for the semiconductor industry and preparations for mass production of Conductive Additive for LiB. Capital expenditure for FY2026 (ending March 2026) is ¥4,167 million, and is planned to increase significantly to ¥21,500 million (company-wide) for FY2027 (ending March 2026), continuing the phase of upfront investment. Operating loss is trending toward reduction at ¥(2,459) million, but the timing of monetization remains undetermined.
At the Board of Directors meeting on May 13, 2026, a resolution was passed for a tender offer for treasury shares (1,100,000 shares at ¥3,083 per share) and their cancellation. The purpose is to improve capital efficiency and execute agile capital policy, and the impact of this acquisition and cancellation has already been incorporated into the FY2027 (ending March 2026) forecast of earnings per share (¥315.05).
Last updated: July 19, 2026