Denka Swings Back to Profit as Earnings Surge Despite Lower Sales

Denka Co ( (JP:4061) ) has provided an announcement.

Denka Co. reported fiscal 2026 consolidated net sales of ¥384.2 billion, down 4.0% year on year, but operating profit surged 82.0% to ¥26.2 billion and ordinary profit more than doubled, lifting profit attributable to owners of parent to ¥15.7 billion after a loss in the prior year. The improvement raised ROE to 5.2%, strengthened net assets to ¥338.8 billion with an equity ratio of 45.6%, and allowed the company to maintain a ¥100 per-share annual dividend, while forecasting further top-line and profit growth in fiscal 2027 with full-year sales of ¥450.0 billion and profit attributable to owners of parent of ¥16.0 billion.

Operating cash flow rose to ¥36.2 billion, supporting significant investment outflows of ¥45.0 billion and leaving cash and cash equivalents at ¥35.3 billion at year-end, modestly below the prior year. The company plans to keep its dividend level unchanged in the year to March 2027, implying a payout ratio just under mid-50% of projected earnings, which underscores a commitment to shareholder returns amid a recovery in profitability and a gradual strengthening of its balance sheet position.

The most recent analyst rating on (JP:4061) stock is a Hold with a Yen2540.00 price target. To see the full list of analyst forecasts on Denka Co stock, see the JP:4061 Stock Forecast page.

More about Denka Co

Denka Co. Ltd. is a Japan-based chemical manufacturer listed on the Tokyo Stock Exchange, operating across diversified materials and specialty chemical businesses. The company’s portfolio includes industrial and functional materials, as well as products serving infrastructure, electronics and life sciences markets, positioning it as a key player in advanced materials and chemicals under Japanese GAAP reporting.

Average Trading Volume: 973,300

Technical Sentiment Signal: Buy

Current Market Cap: Yen376.4B

Learn more about 4061 stock on TipRanks’ Stock Analysis page.