# Chugai Ro Co.,Ltd.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第84期(2025/04/01－2026/03/31) (S100YBFQ)
> Page: https://vizora.meequs.com/en/company/chugai-ro
> Retrieved: 2026-09-30T20:25:19.471Z

## Company

Chugai Ro, founded in 1945, is a company in Plant Engineering & Building Services listed on TSE Prime. It has 748 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Chugai Ro Co., Ltd. |
| Ticker | 1964 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/1964.T) |
| Listing | TSE Prime |
| Head office | 大阪市中央区平野町3丁目6番1号 (あいおいニッセイ同和損保御堂筋ビル) |
| Representative (per filing) | 代表取締役社長執行役員 阪田守 |
| Founded | Apr 1945 |
| Share capital | ¥6.18B |
| Employees (consolidated) | 748 |
| Average salary (parent only) | ¥10M |
| Fiscal year end | March |
| Website | www.chugai.co.jp (https://www.chugai.co.jp/) |
| Corporate number | 2120001049015 |
| EDINET | E00119 |
| Industries (Vizora) | Plant Engineering & Building Services, Industrial Machinery |

> Profile source: annual securities report (S100YBFQ, filed 2026-06-15). As of filing

## Five-axis industry profile

Primary industry: Industrial Machinery (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 22.3 | 110 |
| Profitability | 50.4 | 122 |
| Cash conversion | 81.5 | 116 |
| Efficiency | 53.7 | 122 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 48% of Chugai Ro's sales come from Heat treatment business, with Plant business and Other making up much of the rest.
- Out of every ¥100 of sales, about ¥8 is left as operating profit.
- Revenue changed +3.0% from the prior year, operating profit +5.3%.

## Company structure

- Segment revenue mix: Heat treatment business 48.2%、Plant business 36.1%、Other 10.3%、Development business 5.3%
- Revenue → net income: ¥37332000000 → ¥4653000000
- Net income → operating cash flow: ¥4653000000 → ¥6427000000（difference ¥1774000000）
- Main uses of operating cash flow: CapEx ¥1061000000 / dividends ¥1101000000 / buybacks ¥402000000
- Change in cash: ¥6428000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥37.3B |  |
| Operating income | ¥2.88B | Margin 7.7% |
| Net income | ¥4.67B | Margin 12.5% |
| Free cash flow | ¥5.37B |  |
| Largest business | Heat treatment business | of segment revenue 48.2% |
| Employees (consolidated) | 748 |  |
| EPS | ¥668.28 |  |
| Book value per share | ¥4000.61 |  |
| Equity ratio | 60.8% |  |
| Shares outstanding | 7,800,000 |  |
| Treasury shares | 562,800 |  |
| Shareholders | 5,582 |  |
| Average salary (parent only) | ¥10M | Filing company only |
| Cash ratio | 21.0% | Cash ÷ revenue 28.9% |
| Vs. industry median margin | +0.1 pp | Industrial Machinery |
| ROE | 17.9% | Derived from disclosed figures |
| ROA | 9.3% | Derived from disclosed figures |

## What changed in 1 years

| Metric | FY ending Mar 2025 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥36247000000 | ¥37332000000 | +3.0% |
| Operating income | ¥2735000000 | ¥2879000000 | +5.3% |
| Operating margin | 7.5% | 7.7% | +0.2 pp |
| Employees | 721 people | 748 people | +3.7% |
| Cash and equivalents | ¥4348000000 | ¥10777000000 | +147.9% |

### Change in segment revenue mix

Span: FY ending Mar 2025 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 熱処理事業 → 熱処理事業 | 48.2% |
| 熱処理事業 → 事業再編・廃止 | 1.4% |
| プラント事業 → プラント事業 | 31.1% |
| 開発事業 → 開発事業 | 5.3% |
| 開発事業 → 事業再編・廃止 | 1.2% |
| その他 → その他 | 10.3% |
| その他 → 事業再編・廃止 | 2.4% |
| 新設・再編 → プラント事業 | 5.0% |

Segment revenue source references: 8 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Heat treatment business | — | — | ¥18005000000 | 7.8% | 2 |
| Plant business | — | — | ¥13493000000 | 12.4% | 2 |
| Other | — | — | ¥3851000000 | 0.8% | 2 |
| Development business | — | — | ¥1981000000 | -12.5% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 37,332 | 100.0% | S100YBFQ |
| Cost of revenue | 29,218 | 78.3% | S100YBFQ |
| Gross profit | 8,114 | 21.7% | S100YBFQ |
| SG&A | 5,235 | 14.0% | S100YBFQ |
| Operating income | 2,879 | 7.7% | S100YBFQ |
| Ordinary income | 3,110 | 8.3% | S100YBFQ |
| Pretax income | 6,426 | 17.2% | S100YBFQ |
| Income tax | 1,772 | 4.7% | S100YBFQ |
| Net income | 4,653 | 12.5% | S100YBFQ |
| Net income attributable to owners | 4,668 | 12.5% | S100YBFQ |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 78 |
| SG&A | 14 |
| Operating income | 8 |
| (Ref.) Net income | 13 |

### Margin funnel

Gross margin 21.7% → Operating margin 7.7% → Net margin 12.5%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +3.0%; Core profit growth: +5.3%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 1.76×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 36,247 | 37,332 | 1,085 | +3.0% |
| Gross profit | 7,590 | 8,114 | 524 | +6.9% |
| Operating income | 2,735 | 2,879 | 144 | +5.3% |
| Net income attributable to owners | 2,998 | 4,668 | 1,670 | +55.7% |
| Operating cash flow | -3,696 | 6,427 | 10,123 | — |
| Free cash flow | -4,494 | 5,366 | 9,860 | — |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2025 | 36,247 | 2,735 | 7.5% | 2,998 | -3,696 | -4,494 | S100YBFQ |
| FY ending Mar 2026 | 37,332 | 2,879 | 7.7% | 4,668 | 6,427 | 5,366 | S100YBFQ |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥49.9M |
| Operating income per employee (consolidated) | ¥3.8M |
| Net income per employee (consolidated) | ¥6.2M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: |
| Employees (consolidated) | 721 | 748 |
| Average salary (parent company) | ¥9.2M | ¥10M |
| Average age (parent company) | 43.2 years | 44.1 years |
| Average tenure (parent company) | 15.0 years | 12.7 years |

Year over year: Employees (consolidated) +3.7% · Revenue (consolidated) +3.0%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Heat treatment business | 18,005 | 48.2% | 1,411 | 7.8% |
| Plant business | 13,493 | 36.1% | 1,677 | 12.4% |
| Development business | 1,981 | 5.3% | -247 | -12.5% |
| Other | 3,851 | 10.3% | 31 | 0.8% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Heat treatment business | 48.2% | 45.2% | -3.0 | 7.8% |
| Plant business | 36.1% | 53.8% | 17.6 | 12.4% |
| Development business | 5.3% | — | — | -12.5% |
| Other | 10.3% | 1.0% | -9.3 | 0.8% |

Loss-making segment (excluded from profit shares): Development business -247 JPY mn

Segment → industry: Plant business → Plant Engineering & Building Services / Other → Industrial Machinery / Development business → Industrial Machinery / Plant business → Industrial Machinery / Heat treatment business → Industrial Machinery

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 6,427 | 17.2% | S100YBFQ |
| Capital expenditure | 1,061 | 2.8% | S100YBFQ |
| Free cash flow | 5,366 | 14.4% | 算出 |
| Investing cash flow | 2,588 | 6.9% | S100YBFQ |
| Financing cash flow | -2,641 | -7.1% | S100YBFQ |
| Dividends paid | 1,101 | 2.9% | S100YBFQ |
| Share buyback | 402 | 1.1% | S100YBFQ |
| Change in cash | 6,428 | 17.2% | S100YBFQ |
| Cash and equivalents | 10,777 | 28.9% | S100YBFQ |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: |
| Cash and equivalents | 4,348 | 10,777 | S100YBFQ |
| Total assets | 48,736 | 51,282 | S100YBFQ |
| Net assets | 28,609 | 31,481 | S100YBFQ |
| Share capital | 6,176 | 6,176 | S100YBFQ |
| Property, plant and equipment | 5,053 | 5,815 | S100YBFQ |
| Intangible assets excluding goodwill | 208 | 224 | S100YBFQ |
| Investment securities | 6,533 | 5,330 | S100YBFQ |
| Current assets | 35,982 | 38,569 | S100YBFQ |
| Current liabilities | 15,233 | 15,442 | S100YBFQ |
| Short-term borrowings | 2,569 | 1,921 | S100YBFQ |
| Long-term borrowings | 2,938 | 2,524 | S100YBFQ |
| Total liabilities | 20,127 | 19,800 | S100YBFQ |
| Non-controlling interests | 280 | 280 | S100YBFQ |
| Equity attributable to owners of parent | 24,542 | 27,707 | S100YBFQ |
| Retained earnings | 17,845 | 21,412 | S100YBFQ |
| Treasury stock | -1,023 | -1,426 | S100YBFQ |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 21% | S100YBFQ |
| Property, plant and equipment | 11% | S100YBFQ |
| Intangibles and goodwill | 1% | S100YBFQ |
| Investment securities | 10% | S100YBFQ |
| Other assets | 57% | S100YBFQ |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 39% | S100YBFQ |
| Equity | 61% | S100YBFQ |
| Other liabilities | 0% | S100YBFQ |

### Balance sheet history

| Metric | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: |
| Total assets | 48,736 | 51,282 |
| Equity | 28,609 | 31,481 |
| Interest-bearing debt | — | — |
| Cash | 4,348 | 10,777 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 15.6% | S100YBFQ |
| Fixed assets ÷ total assets | 11.3% | S100YBFQ |
| Goodwill ÷ parent equity | — | —, S100YBFQ |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 21.0% |
| Cash ÷ revenue | 28.9% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 223.2% |
| Cash vs. profit gap | 1,759 JPY mn (of net income 37.7%) |
| Shareholder returns / net income | 32.2% |
| Shareholder returns / FCF | 28.0% |
| Shareholder payments — dividends / net income | 23.6% |
| Shareholder payments — dividends / FCF | 20.5% |
| CapEx intensity (capex ÷ revenue) | 2.8% |
| Investing CF relative to operating CF | 40.3% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2025 | 8.3% | 0.74× | 6.2% | 1.99× | 12.2% | S100YBFQ |
| 2026 | 12.5% | 0.75× | 9.3% | 1.91× | 17.9% | S100YBFQ |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社(信託口) | Major shareholder | 10.8% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 7.2% | 2026-03-31 |
| 第一生命株式会社 | Major shareholder | 5.3% | 2026-03-31 |
| 株式会社りそな銀行 | Major shareholder | 5.0% | 2026-03-31 |
| 中外炉工業関連企業持株会 | Major shareholder | 2.6% | 2026-03-31 |
| 株式会社錢高組 | Major shareholder | 2.4% | 2026-03-31 |
| ＪＰモルガン証券株式会社 | Major shareholder | 2.0% | 2026-03-31 |
| 日本生命保険相互会社 | Major shareholder | 2.0% | 2026-03-31 |
| 株式会社みずほ銀行 | Major shareholder | 1.8% | 2026-03-31 |
| 共英製鋼株式会社 | Major shareholder | 1.5% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第84期(2025/04/01－2026/03/31) | S100YBFQ | 2026-06-15 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YBFQ,, |
| 有価証券報告書－第83期(2024/04/01－2025/03/31) | S100VY3Q | 2025-06-16 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VY3Q,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).