Worth reading
79Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
2000
¥100 million (fiscal 2030 revenue target)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.2%
基準 2,026Target2,030100 million
Operating profit+0.2%
基準 2,026Target2,030100 million
Operating profit margin+4.0pt
基準 2,026Target2,030%
Net income for the current fiscal year+0.2%
基準 2,026Target2,030100 million
ROE+4.0pt
基準 2,026Target2,030%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planNet Sales ¥140 billion / Ordinary income margin 3.0% / ROE 4.3% → Net Sales ¥162.3 billion / Ordinary income margin 7.6% / ROE 17.2%（Net Sales +15.9% / Ordinary income margin +153.3% / ROE +307.1%）
Investment amount by sectorField Expansion of the plant at the North American manufacturing base / Amount ¥1-4 billion (land and buildings), Field Expansion of domestic production bases / Amount ¥5-8 billion (land and buildings), Field Hadano new plant / Amount ¥2.7 billion (buildings and equipment)
Statements about the use of capital
Payout ratio / DOE policyThe company targets a DOE of at least 5.0% and a dividend payout ratio of at least 50% for fiscal 2030. From fiscal 2026 onward, it plans to implement progressive dividends of at least ¥800 per share annually.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe company will consider opportunistic share repurchases from time to time while maintaining an appropriate free-float ratio.
Cost of capitalWACC 6%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceThe company aims to improve its PBR and corporate value by increasing ROE, reducing its cost of capital, and expanding and developing businesses that are expected to grow. The current PBR is Not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Pursue No. 1 heat-exchange technology and market share
02Responding to diversified and growing demand associated with the shift to multiple powertrain pathways
03Pursue overwhelming development speed and cost competitiveness
04Address diverse customer needs globally
05Promoting Local Production for Local Consumption
06Promote the use of DX to support manufacturing
07Promote GX initiatives
08Pursue next-generation technologies and new businesses
09T.RAD-2026 capital allocation policy
10Initiatives to enhance corporate value
Plan assumptionsThe plan assumes that the equity ratio will be maintained at 40% or higher, The plan assumes investment returns exceeding a 6% WACC, TATA Toyo Radiator Ltd.'s planned sales CAGR is approximately 15%, TATA Toyo Radiator Ltd.'s planned net income CAGR is approximately 20%
Segment targetRegional sales forecast: Japan, the United States, Europe, Asia, China, and India (2024-2030), Sales forecast by category and powertrain: ICE, BEV, PHEV, HEV, FCEV, construction machinery, motorcycles, and agricultural machinery (2024-2030)
Non-financial targetsIndicator CO2 emissions / Target value 27% reduction by fiscal 2030 / Timing FY2030, Indicator Carbon Neutrality / Target value Actual reduction / Timing FY2050
Risks identified by the company
Disruption from US tariff policies
Global recession
Foreign-exchange risk
Tariff risk
Higher quality-related costs and quality risk
Supply chain risk
Water risk
Reason for revision or withdrawal
The initial T.RAD-2025 plan assumed disruption from US tariff policies and a global recession. In fiscal 2025, however, the risk scenarios did not materialize, while profitability improvement measures at the company's US subsidiaries and elsewhere bore fruit, resulting in performance significantly exceeding the targets. The company also states that an opportunity to expand market share has emerged due to increased sales plans for HEVs and PHEVs arising from the adoption of multiple powertrain pathways and expanded orders for multifunctional radiators.
| Item | Details |
|---|---|
| Plan name | T.RAD-2026 |
| Plan period | Fiscal 2026 onward through fiscal 2030 |
| Progress against the plan | Formulated |
| Sales Target | ¥163 billion (fiscal 2026 earnings forecast) → ¥200 billion (fiscal 2030 target)（+22.7%） |
| Operating profit target | ¥11.7 billion (fiscal 2026 earnings forecast) → ¥20 billion (fiscal 2030 target outlook)（+70.9%） |
| Operating profit margin target | 7.2% (fiscal 2026 earnings forecast) → 10.0% (fiscal 2030 target outlook)（+38.9%） |
| Net income target | ¥9 billion (fiscal 2026 earnings forecast) → ¥16 billion (fiscal 2030 target outlook)（+77.8%） |
| ROE target | 16.3% (fiscal 2026 earnings forecast) → At least 20.0% (fiscal 2030 target)（+22.7%） |
| Payout ratio / DOE policy | The company targets a DOE of at least 5.0% and a dividend payout ratio of at least 50% for fiscal 2030. From fiscal 2026 onward, it plans to implement progressive dividends of at least ¥800 per share annually. |
| Treasury share acquisition policy | The company will consider opportunistic share repurchases from time to time while maintaining an appropriate free-float ratio. |
| Cost of capital | WACC 6% |
| Self-assessment of PBR and share price | The company aims to improve its PBR and corporate value by increasing ROE, reducing its cost of capital, and expanding and developing businesses that are expected to grow. The current PBR is Not disclosed. |
| Investment amount by sector | Field Expansion of the plant at the North American manufacturing base / Amount ¥1-4 billion (land and buildings), Field Expansion of domestic production bases / Amount ¥5-8 billion (land and buildings), Field Hadano new plant / Amount ¥2.7 billion (buildings and equipment) |
| Segment target | Regional sales forecast: Japan, the United States, Europe, Asia, China, and India (2024-2030), Sales forecast by category and powertrain: ICE, BEV, PHEV, HEV, FCEV, construction machinery, motorcycles, and agricultural machinery (2024-2030) |
| Non-financial targets | Indicator CO2 emissions / Target value 27% reduction by fiscal 2030 / Timing FY2030, Indicator Carbon Neutrality / Target value Actual reduction / Timing FY2050 |
| Plan assumptions | The plan assumes that the equity ratio will be maintained at 40% or higher, The plan assumes investment returns exceeding a 6% WACC, TATA Toyo Radiator Ltd.'s planned sales CAGR is approximately 15%, TATA Toyo Radiator Ltd.'s planned net income CAGR is approximately 20% |
| Key initiatives | Pursue No. 1 heat-exchange technology and market share, Responding to diversified and growing demand associated with the shift to multiple powertrain pathways, Pursue overwhelming development speed and cost competitiveness, Address diverse customer needs globally, Promoting Local Production for Local Consumption, Promote the use of DX to support manufacturing, Promote GX initiatives, Pursue next-generation technologies and new businesses, T.RAD-2026 capital allocation policy, Initiatives to enhance corporate value |
| Results under the previous plan | Net Sales ¥140 billion / Ordinary income margin 3.0% / ROE 4.3% → Net Sales ¥162.3 billion / Ordinary income margin 7.6% / ROE 17.2%（Net Sales +15.9% / Ordinary income margin +153.3% / ROE +307.1%） |
| Reason for revision or withdrawal | The initial T.RAD-2025 plan assumed disruption from US tariff policies and a global recession. In fiscal 2025, however, the risk scenarios did not materialize, while profitability improvement measures at the company's US subsidiaries and elsewhere bore fruit, resulting in performance significantly exceeding the targets. The company also states that an opportunity to expand market share has emerged due to increased sales plans for HEVs and PHEVs arising from the adoption of multiple powertrain pathways and expanded orders for multifunctional radiators. |
| Risks identified | Disruption from US tariff policies, Global recession, Foreign-exchange risk, Tariff risk, Higher quality-related costs and quality risk, Supply chain risk, Water risk |
| Publication date | 27 April 2026 |
Items this document does not state (4)
ROIC targetTotal investment planSize of the Target MarketDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The company sees an opportunity to expand its market share due to increased sales plans for HEVs and PHEVs as the market adopts multiple powertrain pathways, diversifying and growing demand for heat exchangers, expanding orders for multifunctional radiators, and increased inquiries resulting from strategic changes among domestic competitors. It also states that the risk scenarios assumed under T.RAD-2025 did not materialize, while profitability improvement measures at its US subsidiaries and elsewhere bore fruit, resulting in performance significantly exceeding the targets.
How to read this page
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