Chichibu Railway Co., Ltd.
9012・Standard Market・Land Transportation
Business
Chichibu Railway Co., Ltd. was founded in 1899 and operates a railway network with 75.4 km of operating track within Saitama Prefecture, serving as a provider of regional public transportation. Centered on its Railway Business, the company operates a group of six companies encompassing the Tourism Business (pleasure boats, cableway, food & beverage, etc.) in the Nagatoro area, real estate leasing and contracted construction business around stations, a Wholesale & Retail Business closely tied to the rail line area (Chitetsu Shoji Co., Ltd.), and the Bus Business and Construction & Electrical Work Business. Its main customers are residents along the rail line (commuter and student commuter pass users), tourists visiting the Nagatoro and Chichibu areas, and freight shipper companies led by Taiheiyo Cement. The company is listed on the Standard Market of the Tokyo Stock Exchange and has set the development of regional society and the establishment of a sustainable management foundation as its basic management policy.
Business Model
Approximately 65% of revenue comes from the Railway Business (operating revenue of ¥3,648 million in FY2026 (ending March 2026)), with passenger fares, freight fares, and Miscellaneous Transport Revenue (Contracted Work, etc.) as the main income sources. This is complemented by the high-margin Real Estate Business (operating margin of 54.9%), the Tourism Business, which captures tourism demand (revenue up +20.9% year-on-year), and the Wholesale & Retail Business, including convenience stores along the railway line. Within the group, internal transactions such as facility leasing and outsourced operations supplement stable revenue, forming a structure in which each business shares the customer-drawing power generated by the railway infrastructure along the line.
Company Strengths
The passenger fare revision implemented in October 2024 contributed for a full fiscal year, expanding passenger revenue in FY2026 (ending March 2026) to ¥2,063 million (+10.7% year on year). Even as the number of commuter pass passengers declined by 1.8% year on year, commuter pass revenue secured an increase of 7.6%, demonstrating the revenue-defensive power of the fare revision. In the freight segment as well, despite a 5.1% decline in transport volume, freight revenue increased by 3.7%, supplemented by the fare revision.
In FY2026 (ending March 2026), operating revenue of the Tourism Business expanded sharply to ¥597 million (+20.9% year on year), with operating income surging to ¥106 million (+142.4% year on year). The effect of the opening of "SUSABINO Terrace" in July 2025 and increased media exposure of the Nagatoro area drove customer traffic. In October 2025, the company absorbed and merged with its consolidated subsidiary, Hodo Kogyo Co., Ltd., unifying the operational structure of the Tourism Business to achieve greater efficiency.
The Real Estate Business is a highly profitable segment, maintaining operating income of ¥189 million against operating revenue of ¥344 million in FY2026 (ending March 2026), for an operating margin of 54.9%. Although profit declined 16.1% year on year due to a decrease in occupancy rates at rental buildings, stable internal revenue from leasing facilities within the group provided support, complementing the group's overall profit structure.
ENVALITH's Perspective
Performance Trend
Operating revenue increased for five consecutive periods, rising from ¥4,352 million in FY2022 to ¥5,637 million in FY2026. Operating profit turned positive at ¥17 million in FY2024, following losses of ¥287 million in FY2022 and ¥361 million in FY2023, then expanded rapidly to ¥305 million in FY2025 and ¥539 million in FY2026. The sharp increase in profit in FY2026 (ending March 2026) was driven by a combination of factors: the full-year contribution of the passenger and freight fare revisions implemented in the previous period, strong tourism demand (an external factor), and the deferral of repair expenses to the following period. On the other hand, for FY2027 (ending March 2027), a substantial decline in operating profit to ¥260 million (down 51.8% year on year) is forecast due to the implementation of repair works and increases in personnel costs, electricity costs, and depreciation expenses, making it reasonable to view the FY2026 profit level as temporarily elevated.
Growth Strategy
Sustainable growth through fare and rate optimization, consolidation of the tourism business, real estate utilization, and safety-related investment
The passenger fare revision implemented in October 2024 contributed for the full fiscal year in FY2026 (ending March 2026), achieving total passenger revenue of ¥2,063 million (up 10.7% year on year). A freight fare revision was also implemented, offsetting a decline in transport volume (down 5.1% year on year) through the price revision and securing freight revenue of ¥1,251 million (up 3.7% year on year).
In October 2025, the company absorbed and merged Hodo Kogyo Co., Ltd., consolidating the Tourism Business. The effect of the opening of "SUSABINO Terrace" (opened in July 2025) and increased media exposure of the Nagatoro area drove Tourism Business operating revenue of ¥597 million (up 20.9% year on year) and operating profit of ¥106 million (up 142.4% year on year). Facility and environmental improvements at the summit of Mt. Hodosan are planned for FY2027 (ending March 2027).
Interlocking equipment renewal work, centralized train control system renewal work, and safety measures for Class 4 railway crossings were implemented to improve transport safety. Investment related to the transportation IC card system is being advanced to improve convenience. Related depreciation expenses are expected to increase in FY2027 (ending March 2027), but an uplift effect on passenger demand is anticipated.
High-priority renewal projects for aging facilities that were postponed during the COVID-19 pandemic are planned to be implemented in FY2027 (ending March 2027). Railway-related repair work carried over from the previous fiscal year is also planned, and the company has explicitly stated that a significant cost increase is unavoidable in FY2027 (ending March 2027). Leveling out medium- to long-term facility maintenance costs remains a challenge.
Through the absorption merger of Hodo Kogyo Co., Ltd. (October 2025), the group companies were reorganized, promoting efficiency and optimization of organizational operations. This is positioned as an initiative toward building a sustainable management foundation, and cost optimization through inter-segment internal transactions is also continuing.
Last updated: July 19, 2026