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Earnings presentation4736Nippon RAD Inc.Information and Communications, Services and Others

Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

For the interim period of the fiscal year ending March 2027, revenue decreased 9.7% year on year to ¥1,800 million, while operating results also turned from a profit in the same period of the previous year to a loss of ¥87 million. Assuming that acceptance inspections for large projects will be concentrated in the second half, the full-year forecast calls for revenue of ¥4,340 million and operating profit of ¥175 million.

Worth reading
62In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-87
Millions of yen (interim-period operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter (interim period) of the fiscal year ending March 20277 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,800 million-9.7%
Operating profit¥-87 million
Ordinary income¥-12 million
Net income¥-17 million
Gross Profit Margin17.7
Results for the three months of the current quarter
Net Sales
¥914 million
Operating profit
¥-36 million
Full-year earnings forecast
Net Sales
¥4,340 million
Operating profit
¥175 million
Ordinary income
¥253 million
Net income for the current fiscal year
¥165 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales41.5
What the company explained in this material
New initiatives
  • Structural shift to a commissioned-contracting model and AI-driven development
  • Development investment in the company's proprietary IP video service
  • Expansion of the composable MES "Konekti MX" and the data integration platform "Dereva"
  • Development and deployment of the high-speed pre-execution application verification engine "PEV"
  • New deployment of highly secure video capture and transmission devices and systems
Key KPIsA metric the company considers important as a management benchmark.
Number of employees
328 people
as_of1 April 2026
Revenue mix (%)
Enterprise Solutions Business62.3%
IoT Integration Business37.7%
Current ratio
518 %
Equity ratio
74.3 %
Change vs. previous period-end (pt)3
Segment results
Enterprise Solutions Business
Net Sales
¥1,146 million-2.3%
Segment profit
¥170 million+19.7%
Segment profit margin
14.9 %
yoy_change_pt2.8
IoT Integration Business
Net Sales
¥678 million-18.4%
Segment profit
¥-14 million
Medium-term management plan targets
Net Sales
Fiscal year ended March 2025¥3,863 million
Fiscal year ending March 2026¥3,950 million
Fiscal year ending March 2027¥4,210 million
StandardStandalone basis
Operating profit
Fiscal year ended March 2025¥150 million
Fiscal year ending March 2026¥200 million
Fiscal year ending March 2027¥295 million
StandardStandalone basis
Reference consolidated revenue for the fiscal year ending March 2027
¥5,000 million
Number of employees
328 people
As of1 April 2026
Annual Dividend
¥10 per share
Payout ratio
32 %
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥1,800 million (YoY -9.7%)
Operating profit¥-87 million
Ordinary income¥-12 million
Net income¥-17 million
Gross Profit Margin17.7
Results for the three months of the current quarterNet Sales ¥914 million / Operating profit ¥-36 million / Ordinary income Not disclosed / Net income Not disclosed
Full-year earnings forecastNet Sales ¥4,340 million / Operating profit ¥175 million / Ordinary income ¥253 million / Net income for the current fiscal year ¥165 million
Progress against full-year forecastNet Sales 41.5 / Operating profit Not disclosed / Ordinary income Not disclosed / Net income for the current fiscal year Not disclosed
Segment resultsEnterprise Solutions Business Net Sales ¥1,146 million (YoY -2.3%) / Segment profit ¥170 million (YoY +19.7%) / Segment profit margin 14.9 % / IoT Integration Business Net Sales ¥678 million (YoY -18.4%) / Segment profit ¥-14 million / Segment profit margin Not disclosed
Key KPIsNumber of employees 328 people / Revenue mix (%) Enterprise Solutions Business 62.3% / IoT Integration Business 37.7% / Current ratio 518 % / Equity ratio 74.3 %
Number of employees328 people
Medium-term management plan targetsNet Sales Fiscal year ended March 2025 ¥3,863 million / Fiscal year ending March 2026 ¥3,950 million / Fiscal year ending March 2027 ¥4,210 million / Standard Standalone basis / Operating profit Fiscal year ended March 2025 ¥150 million / Fiscal year ending March 2026 ¥200 million / Fiscal year ending March 2027 ¥295 million / Standard Standalone basis / Reference consolidated revenue for the fiscal year ending March 2027 ¥5,000 million
Annual Dividend¥10 per share
Payout ratio32 %
New initiativesStructural shift to a commissioned-contracting model and AI-driven development, Development investment in the company's proprietary IP video service, Expansion of the composable MES "Konekti MX" and the data integration platform "Dereva", Development and deployment of the high-speed pre-execution application verification engine "PEV", New deployment of highly secure video capture and transmission devices and systems
Items this document does not state (14)
Operating profit marginSelling, general and administrative expensesSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

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.

Profitability in the first half declined due to additional man-hours in upstream processes, design and verification associated with the transition to AI-driven development, front-loaded investment and the strengthening of the development structure, and development investment in video solutions and products for manufacturing DX. The company expects acceptance inspections and completion of large projects related to video and DX, as well as large public-sector projects, to be concentrated in the second half.

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Financial Results Presentation for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 | Nippon RAD Inc. (4736) timely disclosure | Komori