ENVALITH
東京地下鉄株式会社 logo

Tokyo Metro Co., Ltd.

9023・Prime Market・Land Transportation

Official website
東京地下鉄株式会社 logo
Tokyo Metro Co., Ltd.9023

Business

Tokyo Metro Co., Ltd. (Tokyo Metro) is a subway operator running 9 lines—the Ginza, Marunouchi, Hibiya, Tozai, Chiyoda, Yurakucho, Hanzomon, Namboku, and Fukutoshin Lines—covering 195.0 operating kilometers, primarily within Tokyo's central wards. Established in 2004 as successor to the Teito Rapid Transit Authority, the company listed on the Tokyo Stock Exchange Prime Market in October 2024. Centered on its Transportation Business, the group comprises 14 companies engaged in Real Estate Leasing, in-station commercial facilities, advertising, and information & communications. Annual ridership reached 2,571,229 thousand passengers (FY2026, ending March 2026), making it a highly public-service-oriented transportation operator underpinning urban infrastructure in the greater Tokyo metropolitan area.

Business Model

Passenger transport revenue (¥350,485 million in FY2026 (ending March 2026)) forms the core of earnings, supported by stable ridership demand from both commuter and non-commuter passengers. In addition, the company operates real estate leasing at stations and along rail lines (operating margin of approximately 30%), manages Echika and Other In-Station Commercial Facilities, and sells In-Station & In-Train Advertising, monetizing its owned railway infrastructure assets across multiple layers. A flow-type real estate model utilizing Tokyo Metro Private REIT Investment Corporation has also been added, aiming to improve asset efficiency.

Company Strengths

The 195.0km network of 9 lines covering major areas within Tokyo's wards constitutes a monopolistic infrastructure into which new entry is legally and physically extremely difficult. In FY2026 (ending March 2026), passenger volume reached 2,571,229 thousand passengers and passenger transport revenue reached ¥350,485 million, forming a structural revenue base that stably captures commuting, school commuting, and tourism demand.

In March 2026, platform door installation was completed at all stations on all lines (excluding some platforms at Minami-sunamachi Station on the Tozai Line). Continuous capital investment in safety and service improvement, including the start of CBTC System (Communications-Based Train Control) operations on the Marunouchi Line (December 2024) and the completion of full deployment of new train sets on the Hanzomon Line (total capital investment of ¥102,871 million in FY2026, ending March 2026), serves as a differentiating factor versus competitors.

In addition to the Transportation Business (operating income of ¥76,189 million), the company operates the Real Estate Business (operating margin of approximately 30%) and the Life & Business Services business (operating margin of approximately 32%). The business group, which leverages self-owned assets such as in-station, under-elevated-track, and trackside properties, functions as a buffer against fluctuations in transportation demand, enhancing the earnings stability of the group as a whole.

ENVALITH's Perspective

The company's forecast for FY2027 (ending March 2027) calls for operating revenue of ¥437,200 million (up 3.5% year on year), while operating income is expected to fall to ¥81,400 million (down 9.1%), recurring profit to ¥69,000 million (down 12.9%), and net income attributable to owners of parent to ¥50,000 million (down 15.3%), representing a substantial profit decline. While revenue is expected to increase on the back of growing passenger demand, rising expenses and personnel costs are set to weigh on profits. The disappearance of the ¥6,408 million gain from the revision of the retirement benefit plan recorded in FY2026 (ending March 2026) will also be a factor pushing down net income.

In FY2026 (ending March 2026), the company recorded extraordinary income of ¥20,219 million, including a ¥6,408 million gain from the revision of the retirement benefit plan and a ¥10,147 million valuation gain on railway facility assets received as donations, while also incurring extraordinary losses of ¥13,820 million, including a ¥13,468 million loss on reduction entry of fixed assets. In the prior fiscal year, a ¥7,240 million gain on sale of fixed assets and a ¥6,570 million settlement payment related to employment were among the items affecting profit and loss. On a recurring profit basis, growth was stable at up 2.9% year on year, but given the large swings in extraordinary gains and losses, caution is warranted when making year-on-year comparisons of net income.

As of the end of FY2026 (ending March 2026), interest-bearing debt remained at a high level, including corporate bonds of ¥577,000 million, long-term borrowings of ¥258,713 million, and long-term borrowings for new line construction promotion of ¥192,120 million. Interest expense is on an increasing trend, reaching ¥12,057 million (up ¥189 million year on year). If the environment of rising interest rates continues as an external factor, there is a risk that increased costs at the time of refinancing could weigh on recurring profit. The equity ratio improved to 35.9% from 35.3% in the prior fiscal year, but financial leverage is expected to remain elevated as investment in new line construction continues.

Growth Strategy

Pursuing sustainable growth through four pillars: new railway line construction, real estate expansion, overseas O&M business, and DX

Advancing extension works for the Yurakucho Line (Toyosu–Sumiyoshi) and Namboku Line (Shirokane-Takanawa–Shinagawa). Utilizing new line construction promotion long-term borrowings of ¥192,120 million and new line construction promotion fund trust of ¥183,769 million, aiming to capture future passenger demand and promote development along the lines.

Achieved Real Estate Business operating revenue of ¥14,694 million (up 0.2% year on year) and operating income of ¥4,399 million (up 4.7% year on year), driven by the opening of new properties such as the TS Aoyama Building and Metro Stage PLUS Nakano Yayoicho. Real Estate segment assets increased significantly to ¥92,734 million from ¥75,163 million in the previous period, with investment continuing.

From FY2026 (ending March 2026), the reportable segment has been changed from "Retail & Advertising" to "Life & Business Services". Achieved operating revenue of ¥26,388 million (up 2.5% year on year) and operating income of ¥8,527 million (up 3.2% year on year), driven by the opening of new commercial facilities such as M'av Urayasu EAST and increased sales of in-station advertising media.

Promoting the introduction of Japan's first CBTC System (Communications-Based Train Control), aiming to improve operational stability and enhance maintenance cost efficiency. Aiming to improve the long-term cost structure through the promotion of Condition-Based Maintenance (CBM). Continuing capital investment while recording depreciation expenses of ¥73,921 million.

Aiming to establish new revenue sources not dependent on the domestic railway business through participation in overseas railway operation and maintenance (O&M) businesses such as the Elizabeth line in the UK. Equity in earnings of affiliates showed an increasing trend, reaching ¥211 million (up from ¥99 million in the previous period).

Last updated: July 19, 2026