Rasa Industries Q1 Sales Jump 31% on High-Purity Phosphorus, but Guidance Implies a Slower Second Quarter

Phosphorus for chips carries the quarter

Rasa Industries, Ltd. (TSE: 4022) published consolidated first-quarter results for FY3/2027 on August 12, 2026, covering April 1 to June 30, 2026 under Japanese GAAP. Net sales rose 30.9% to ¥13,709 million, operating profit 37.0% to ¥1,805 million, ordinary profit 28.1% to ¥1,863 million and net profit attributable to shareholders 20.5% to ¥1,312 million, for earnings per share of ¥33.60 against ¥27.91. Comprehensive income more than doubled to ¥1,251 million from ¥509 million.

Chemicals, which supplies more than five-sixths of group sales, lifted revenue 31.3% to ¥11,700 million and segment profit 22.3% to ¥1,665 million. Within phosphorus products, general grades of phosphoric acid fell but high-purity grades sold to semiconductor customers grew both in Japan and abroad. Flocculants gained on steady demand from water utilities, and raw materials for capacitors added further volume. That profit grew more slowly than revenue points to a mix that is heavier on volume than on price.

Electronic materials nearly triple their profit

Electronic materials was the fastest-growing segment, with revenue up 82.2% to ¥850 million and segment profit up 186.2% to ¥295 million. The unit supplies high-purity inorganic materials for compound semiconductors: red phosphorus, indium and boron oxide all grew on a firm compound-semiconductor market, and gallium added spot sales on top of contracted volumes. On these figures the segment now earns a margin of about a third — the highest in the group.

Machinery grew revenue 20.0% to ¥909 million and turned a token ¥1 million of segment profit a year ago into ¥29 million. Construction machinery — crushers, plant sales and precision machining — was solid, while civil-engineering machinery, chiefly boring machines for sewer work, was somewhat sluggish in both sales and rentals yet still ahead of the prior year. The other businesses went backwards: revenue fell 26.8% to ¥248 million and profit 18.2% to ¥175 million as petroleum-refining catalyst regeneration declined, with property rental roughly flat. Unallocated corporate cost was ¥361 million, little changed from ¥364 million.

Balance sheet and capital

Current assets rose ¥1,115 million to ¥25,761 million, with trade receivables up ¥556 million, electronically recorded receivables up ¥250 million and inventories up ¥233 million. Fixed assets grew ¥378 million to ¥25,706 million, mostly ¥396 million of tangible assets, taking total assets to ¥51,467 million. Liabilities rose ¥1,149 million to ¥19,282 million: other current liabilities, chiefly advances received and accrued payables, added ¥1,064 million and trade payables ¥270 million, while short- and long-term borrowings together fell ¥348 million. Net assets grew ¥344 million to ¥32,185 million as the quarter's ¥1,312 million of profit outweighed ¥906 million of dividends paid, and the equity ratio eased to 62.5% from 63.7%.

The year is the last of Medium-Term Management Plan 2026, which the company frames as the "seeding" phase of its longer RasaVision2033 ambition, with capital efficiency and the profitability of core and growth businesses as the stated priorities.

Guidance untouched — and demanding of the run rate

Rasa left the forecast published on May 14, 2026 unchanged. For the year to March 2027 it expects net sales of ¥54,000 million (+13.1%), operating profit of ¥6,200 million (+3.1%), ordinary profit of ¥6,300 million (+1.7%) and net profit of ¥4,300 million (−1.4%), for earnings per share of ¥110.08. The first-half guidance is ¥26,000 million of sales (+14.5%) and ¥2,800 million of operating profit (−2.1%).

Those two numbers sit oddly beside the quarter just reported. A single quarter has already delivered ¥1,805 million, or 64% of the half-year operating-profit target, and that target is itself set 2.1% below the prior year — so the company's own forecast implies a second quarter well below both this first quarter and the equivalent period last year. The dividend forecast is ¥36.00 per share for the year, split evenly between interim and year-end. Rasa carried out a five-for-one share split on April 1, 2026; the ¥180.00 paid for FY3/2026 was a pre-split figure and equates to the same ¥36.00 on today's share count, so the dividend is effectively held flat.

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.