Lilycolor Co., Ltd.
9827・Standard Market・Wholesale Trade
Business
Lilycolor Co., Ltd. is a comprehensive interior products company founded in 1949 and listed on the Standard Market of the Tokyo Stock Exchange. In its core Interior segment, the company outsources manufacturing of wallcoverings, curtains, and flooring materials to manufacturers under its own "Lilycolor" brand, and sells to distributors, interior construction contractors, and others. In its second segment, the Space Solutions business, the company handles interior design, construction, and furniture sales for offices and facilities. The real estate investment and development business, launched in January 2024, engages in value-add investment, development, and leasing, diversifying the company's business portfolio. In June 2024, the company became a consolidated subsidiary of TKP Corporation. Its main customers are distributors, interior construction contractors, and corporate clients, and it maintains sales networks covering both residential and non-residential markets.
Business Model
The Interior Business is built on a wholesale model in which independently developed products are manufactured on an outsourced basis and sold to distributors and construction contractors, with product sample books serving as the primary sales promotion tool. The Space Solutions Business operates on an order-based model covering design, construction, and furniture sales, where the accumulation of the order backlog directly translates into the following period's sales. The Real Estate Investment & Development Business generates earnings through the acquisition, development, and sale of properties financed by borrowings from financial institutions. By combining these three businesses, the company aims for a structure that diversifies its dependence on economic cycles and housing start trends.
Company Strengths
Founded in 1949, the company has a 76-year business history as of 2025, and has established sales offices in major cities nationwide, including Sapporo, Tohoku, Kansai, Hiroshima, and Kyushu. Long-standing trading relationships with distributors and interior contractors have formed a stable sales foundation.
The company promotes sales expansion by issuing multiple new and expanded sample books annually across categories such as wall coverings, curtains, and flooring materials. In FY2025 (ending December 2025), Interior segment sales increased 2.0% year on year to ¥24,728 million, demonstrating that sample book issuance directly contributes to results.
In FY2025 (ending December 2025), the Space Solutions segment posted sales of ¥7,431 million, down 22.1% year on year, while segment profit increased 174.5% year on year to ¥352 million. Profitability improvement measures succeeded even amid declining sales, and the strengthening of the earnings structure is confirmed by the figures.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has remained flat in the ¥32,000–34,000 million range, while operating profit plunged to ¥151 million in FY2024 before recovering to ¥801 million in FY2025. In Q1 FY2026, revenue was ¥8,044 million (+2.5% year-on-year) and operating profit was ¥81 million (+0.1% year-on-year), maintaining a level roughly in line with the prior-year period at the operating profit stage. However, non-operating expenses expanded due to a sharp increase in commission fees paid and other factors, resulting in a decline below the operating profit line: ordinary profit of ¥41 million (down 32.8% year-on-year) and quarterly net profit of ¥22 million (down 18.5% year-on-year). In terms of the external environment, new housing starts continue to show a downward trend, while a recovery in office demand is supporting the Space Solutions business. Q1 progress against the full-year forecast (operating profit of ¥1,000 million) stood at only 8.1%, implying that profit generation must be concentrated in the second half.
Growth Strategy
Under "Beyond-120," the company is advancing business portfolio restructuring, fixed cost reform, and investment in human capital.
The company continues to issue and add volumes to sample books for wall coverings, curtains, flooring, and other materials, strengthening sales efforts in the non-residential sector in addition to residential applications. In Q1 FY2026, multiple sample books were issued, securing net sales of ¥6,234 million (up 0.7% year on year), but segment profit fell sharply to ¥31 million (down 75.0% year on year), making cost control a key challenge.
The company is strengthening proposal activities to capture demand related to new ways of working and facility value enhancement. In Q1 FY2026, net sales rose to ¥1,800 million (up 9.0% year on year), and the segment turned profitable with segment profit of ¥57 million (versus a segment loss of ¥36 million in the same period last year), showing good progress against plan.
Real estate for sale in progress has been built up to ¥1,066 million, with the aim of recognizing revenue through property completion and sale. In Q1 FY2026, the segment loss narrowed to ¥6 million (from ¥7 million in the same period last year), but net sales remained limited at ¥9 million, indicating that monetization is still only partway achieved. Attention should be paid to the sharp increase in short-term borrowings, which is increasing the financial burden.
Under the medium-term management plan "Beyond-120" (revised in February 2026), the company is promoting management indicators that are conscious of the cost of capital, along with active investment in human capital. The equity ratio declined to 36.4% (from 40.0% at the end of the previous fiscal year), making it a challenge to balance improved capital efficiency with financial soundness.
Last updated: July 17, 2026