Nissan Chemical has confirmed that its Indian agrochemical and domestic sulfur manufacturing units qualify as specific subsidiaries. The company also acknowledged delays in previous regulatory disclosures.
Nissan Chemical announced that Nissan Bharat Rasayan PVT.LTD, established in Gurgaon, India, in April 2020, is now a specific subsidiary. This designation follows the unit exceeding one percent of the parent company's capital, totaling approximately 2.2 billion yen. Nissan Chemical holds 70% of the shares, while Bharat Rasayan Limited holds the remaining 30%.
For the fiscal year ending March 2026, sales are projected at 5,041 million yen, with net income estimated at 163 million yen. While revenue represents a 23 percent decline from the previous period, net assets are expected to remain at a historic high of 4,061 million yen.
| Fiscal Year | March 2024 | March 2025 | March 2026 (Forecast) |
|---|---|---|---|
| Net Assets | 3,189 million yen | 3,990 million yen | 4,061 million yen |
| Sales | 3,724 million yen | 6,558 million yen | 5,041 million yen |
| Net Income | 947 million yen | 924 million yen | 163 million yen |
This disclosure ensures that the financials of Nissan Chemical's overseas agrochemical active ingredient manufacturing base are integrated into consolidated earnings forecasts.
Additionally, NC Tokyo Bay Co., Ltd. (formerly Nihon Rinsan Co., Ltd.), headquartered in Sodegaura, Chiba, is now classified as a specific subsidiary after Nissan Chemical acquired 100 percent of its shares to make it a wholly owned subsidiary. The company's capital stands at 1,946 million yen.
Financial projections for this unit indicate sales of 2,910 million yen and net income of 66 million yen for the fiscal year ending March 2026. Total assets show an upward trend, signaling a stable operational foundation.
| Fiscal Year | March 2024* | March 2025 | March 2026 (Forecast) |
|---|---|---|---|
| Net Assets | 2,312 million yen | 2,380 million yen | 2,446 million yen |
| Sales | 1,869 million yen | 2,540 million yen | 2,910 million yen |
| Net Income | 116 million yen | 68 million yen | 66 million yen |
* Nine-month fiscal year due to term changes.
Sales Growth Trend Continues
NC Tokyo Bay manufactures sulfuric acid. While its impact on consolidated results is limited, it plays a vital role in stabilizing the supply chain.
Along with this disclosure, Nissan Chemical admitted that timely filings regarding changes in these two specific subsidiaries were not submitted under listing regulations in prior years.
Taking Disclosure Obligations Seriously
The company stated it deeply regrets the late submission. To prevent recurrence, Nissan Chemical will revise internal confirmation processes for timely disclosures, strengthen information sharing between departments, and enforce rigorous training on disclosure protocols.
While such delays pose risks to investor trust, the company emphasized that swift corrective measures and transparency are priorities. The consolidated earnings forecast released on May 15, 2026 already accounts for this data, and Nissan Chemical confirmed there will be no direct impact on results for the fiscal year ending March 2027.
Analyst take
Nissan Chemical's disclosure signals a strategic shift in its global value chain. The Indian subsidiary reflects a move to diversify production away from China-centric models. However, the admission of past compliance failures highlights governance risks. Investors will closely monitor whether management can restore trust through transparent financial reporting and strengthened internal controls.
