OKAMOTO GLASS CO., LTD.
7746・Standard Market・Precision Instruments
Business
Okamoto Glass Co., Ltd., founded in 1947, is a specialty glass and thin-film products manufacturer headquartered in Kashiwa City, Chiba Prefecture, operating as a group of six companies both domestically and internationally. In its core Optics Business, the company manufactures Reflector Mirrors for Projectors and Fly-Eye Lenses, supplying the Seiko Epson Group and Epson Precision (Philippines), Inc. (its largest customer, accounting for 23.1% of net sales). The Lighting Business provides cover glass for automotive headlights, while the Functional Thin Film & Glass Business handles the Glass Polarizer "Glapola®" for optical isolators used in data centers and the High-Durability Silver Mirror "Hi-Silver®". The Others segment includes medical Dental Mirrors and pressure-resistant glass spheres for marine exploration equipment, providing specialty glass technology across diverse industrial fields.
Business Model
Centered on three core competencies—glass material development, precision molding, and thin-film vapor deposition—the company produces specialty glass products to order for a wide range of industries, including projectors, automobiles, optical communications, and medical devices. While securing stable revenue based on long-term relationships with key customers, it aims to transform its earnings structure through capital investment in growth areas such as glass polarizers for AI data centers and heat-dissipation substrates. Its Asian supply framework, leveraging consolidated subsidiaries in Taiwan and China, also underpins its revenue base.
Company Strengths
The company holds patents in Japan, China, and the U.S. for the "Glass Polarizer for Visible Light" and "Glass Polarizer and Its Manufacturing Method," establishing a dominant position in optical isolator applications. The Glass Polarizer for optical communications "Glapola®" has been adopted in optical transceivers for generative AI data centers, resulting in high technical barriers to entry.
The glass injection molding technology "G-injection®," which enables the realization of complex three-dimensional shapes, is a patented proprietary technology that allows for the molding of double-sided lenses and irregularly shaped lenses. In addition, the company has completed basic technology development for the next-generation high-precision pressing method "FP method" and is proceeding with technical verification for the transition to mass production, which is expected to significantly improve molding precision and glass utilization efficiency.
The Others segment recorded net sales of ¥894 million and segment profit of ¥222 million in FY2026 (ending March 2026), maintaining an operating margin of approximately 24.9%, the highest level within the group. Medical-use glass products such as Dental Mirror and Marine & Special Equipment Products (Edokko 1-Go, etc.) support stable high profitability, complementing the volatility risk of the core businesses.
ENVALITH's Perspective
Performance Trend
Revenue continued its declining trend after peaking at ¥5,069 million in FY2022 (ended March 2022), and in FY2026 (ending March 2026) it stood at ¥4,731 million, a marginal increase of +1.0%. On the profit side, depreciation expenses associated with the renewal of the glass melting furnace used for Fly-Eye Lens production nearly doubled, rising from ¥323 million in the previous period to ¥601 million. In addition, tight supply-demand conditions for Faraday rotators (an external factor) driven by expanding data center investment caused a sharp drop in orders for polarizers, leading to a steep decline in segment profit for the Functional Thin Film & Glass Business, from ¥93 million in the previous period to ¥3 million. As a result, the company recorded an operating loss of ¥78 million, an ordinary loss of ¥83 million, and a net loss of ¥149 million, marking its first comprehensive deficit across all profit lines in five periods. The equity ratio improved from 20.8% in the previous period to 30.1%, aided by the capital increase effect from the exercise of stock acquisition rights.
Growth Strategy
Aiming for a 10% profit margin under GROWTH28 through capacity expansion in polarizers, heat dissipation substrates, and capital investment in new light guide devices
To respond to increasing demand for Glass Polarizer used in optical communications, driven by expanding data center investment, the company plans to expand its manufacturing line and double sales volume from February 2027. Orders and production have been recovering since November 2025, and this initiative will serve as the core driver of the earnings recovery in the Functional Thin Film & Glass Business for FY2027 (ending March 2027).
An increase in sales volume of the company's heat dissipation substrates, driven by growing customer adoption, is expected to begin around September 2026. These are positioned as data center-related products, and the company plans to allocate ¥800 million raised through stock acquisition rights to new capital investment in data center-related products.
Of the ¥1,599 million raised through stock acquisition rights (11th and 12th series), ¥600 million is planned to be allocated to new capital investment related to new light guide devices. Spending is scheduled to be made in phases from July 2026 through June 2029, aiming to expand the next-generation product lineup.
Amid continued declines in sales of Cover Glass for Automotive Headlights and Fog Lights, the withdrawal from unprofitable products and other measures turned the Lighting Business segment loss (¥32 million in the prior period) into a profit (¥5 million). The lowered break-even point is expected to enhance profit contribution when sales recover going forward.
Last updated: July 19, 2026