Keihan Holdings Co.,Ltd.

Business Details

This segment centers on Keihan Electric Railway Co., Ltd., comprising the Railway Business, including Eizan Electric Railway Co., Ltd. and Keifuku Electric Railroad Co., Ltd., and the Bus Business, including Keihan Bus Co., Ltd., Kyoto Bus Co., Ltd., and Koto Kotsu Co., Ltd. It focuses mainly on passenger transportation in the Kansai region, capturing commuter and student demand as well as inbound and tourism demand. In FY2026 (ending March 2026), operating revenue was ¥97,522 million and operating profit was ¥13,977 million, making it a core segment that supports the Group's overall earnings base.

Recent Overview

Revenue up 6.7% and operating profit up 13.4% on fare revision and capture of Expo-related demand

In FY2026 (ending March 2026), the Transportation Business benefited from increased revenue following the October 2025 fare revision on the Keihan Line and Otsu Line, as well as from capturing demand through shuttle bus and highway bus operations tied to the Osaka-Kansai Expo. Operating revenue was ¥97,522 million (up ¥6,140 million, or 6.7%, year on year), and operating profit was ¥13,977 million (up ¥1,653 million, or 13.4%, year on year). The segment also advanced convenience-enhancing initiatives, including a large-scale renovation of the Yodoyabashi Station concourse and the introduction of a web-based commuter pass reservation service.

Key Products

Growth Drivers

• Ongoing revenue benefit from the October 2025 fare revision on the Keihan Line and Otsu Line
• Expansion of non-commuter revenue driven by growth in inbound and tourism demand
• Enhanced reserved-seat services and higher value-added revenue from the two-car premium car configuration
• Improved convenience along the rail line and increased ridership from the Yodoyabashi Station renovation and new entrance installation
• Improved customer convenience through digitalization initiatives such as the web-based commuter pass reservation service
• Active capture of demand opportunities such as highway buses and shuttle buses in the Bus Business

Risks

• Upward cost pressure from labor costs, repair costs, power costs, and other expenses
• Increase in depreciation and amortization associated with expanded capital expenditure such as new rolling stock (already factored into the FY2027 (ending March 2027) forecast)
• A rebound decline in demand is expected in FY2027 (ending March 2027) following the conclusion of the Expo
• Long-term risk of declining commuter pass demand due to the falling birthrate, aging population, and spread of remote work
• Risk of sudden changes in passenger demand due to natural disasters, infectious disease outbreaks, and similar events
• Profit pressure in the Bus Business from driver shortages and rising vehicle repair costs