Inaba Denki Sangyo Co., Ltd. (TSE: 9934) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Net sales rose 8.6% year-on-year to a record ¥417,023 million, while operating profit climbed 16.3% to ¥29,711 million and ordinary profit jumped 18.9% to ¥31,756 million. Net profit attributable to owners of the parent rose 24.7% to ¥23,420 million from ¥18,783 million. The operating margin widened to 7.1% from 6.7%, and return on equity improved to 12.7% from 11.2%. Comprehensive income soared 85.5% to ¥34,312 million, lifted by gains on the company's securities portfolio.
Wholesale volume and manufacturing both contribute
Inaba Denki Sangyo operates two reporting segments: a core electrical-equipment wholesale business that distributes wiring devices, control equipment, lighting, renewable-energy and air-conditioning-related materials to contractors and installers across Japan, and a smaller manufacturing business centred on the company's own brand of air-conditioner mounting hardware, piping covers and wiring accessories. Top-line growth was broad-based, supported by firm capital-investment demand, building renovation and electrification work, data-centre and semiconductor-plant construction, and steady replacement demand for air-conditioning installation components — categories where Inaba's proprietary products command strong share.
Profit growth outpaces sales as margins expand
Profit grew faster than sales across every line, a sign that price discipline and a richer product mix lifted profitability even as volumes rose. Operating profit advanced 16.3% against an 8.6% sales gain, and ordinary profit benefited further from non-operating income, rising 18.9%. Net profit grew the fastest of all at 24.7%, helped by the comprehensive-income tailwind from a stronger securities portfolio. Earnings per share came in at ¥208.49 on a restated basis, up from ¥166.92 the prior year, reflecting both the profit surge and the share count following the company's stock split.
Fortress balance sheet; strong cash generation
Total assets grew to ¥313,325 million from ¥278,983 million, while net assets rose to ¥197,384 million from ¥173,023 million. The equity ratio remained robust at 62.9% (up from 61.8%), and net assets per share rose to ¥1,754.68 from ¥1,536.35. Operating cash flow was strong at ¥26,909 million, comfortably funding ¥6,601 million of investing outflows and ¥10,266 million of financing outflows (chiefly dividends), leaving period-end cash and equivalents of ¥76,202 million. The lightly leveraged balance sheet gives Inaba ample capacity for both shareholder returns and bolt-on investment.
2-for-1 stock split and raised dividend
On December 1, 2025, Inaba executed a 2-for-1 common-stock split; per-share figures for the prior year have been restated to reflect it. The FY3/2026 annual dividend totalled ¥9,569 million in aggregate, for a consolidated payout ratio of 40.8% — including a ¥15 special dividend in the year-end payment. On a non-split-adjusted basis, the year-end dividend was ¥100.00 and the full-year dividend ¥170.00 per share. For FY3/2027 the company guides a post-split annual dividend of ¥85.00 per share (¥40.00 interim + ¥45.00 year-end), implying a 40.3% payout ratio.
FY27 guidance: record sales again, profit growth continues
For the fiscal year ending March 31, 2027, management guides net sales of ¥436,000 million (+4.6%) — another record — with operating profit of ¥32,900 million (+10.7%), ordinary profit of ¥34,400 million (+8.3%), and net profit attributable to owners of ¥23,700 million (+1.2%), equivalent to EPS of ¥211.13. The more modest net-profit growth versus operating profit reflects the absence of the one-off securities-related gains that boosted FY3/2026; the underlying operating trajectory remains firmly upward, supported by Japan's continued electrification, construction and infrastructure-renewal cycle.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 417,023 | 384,012 | +8.6% |
| Operating profit (¥ million) | 29,711 | 25,556 | +16.3% |
| Ordinary profit (¥ million) | 31,756 | 26,698 | +18.9% |
| Net profit attrib. to owners (¥ million) | 23,420 | 18,783 | +24.7% |
| EPS (¥, restated) | 208.49 | 166.92 | +24.9% |
| Operating margin | 7.1% | 6.7% | +0.4pp |
| ROE | 12.7% | 11.2% | +1.5pp |
| Equity ratio | 62.9% | 61.8% | +1.1pp |
| Net assets per share (¥) | 1,754.68 | 1,536.35 | +14.2% |
| FY27 net sales guidance (¥ million) | 436,000 | — | +4.6% |
| FY27 operating profit guidance (¥ million) | 32,900 | — | +10.7% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.