Can the 1Q profit lead be maintained through H1?

Revenue in 1Q of FY2027 (year ending February 2027) was ¥5,734 million, and operating profit was ¥897 million. As the full-year forecasts are revenue of ¥25,000 million and operating profit of ¥2,500 million, progress at the 1Q stage was 22.9% for revenue and 35.9% for operating profit. Operating profit was 12.9 percentage points ahead of revenue in terms of progress, marking a start led by profit.

If H1 is viewed as a simple 50% milestone for the full-year plan, the benchmarks are cumulative revenue of ¥12,500 million and cumulative operating profit of ¥1,250 million. Based on the 1Q results, these benchmarks would be reached if standalone 2Q revenue of ¥6,766 million and operating profit of ¥353 million are secured. Whether H1 exceeds these levels will be the first quantitative checkpoint for assessing the likelihood of achieving full-year operating profit of ¥2,500 million.

At 1Q, 25% of the fiscal year had elapsed. Revenue progress of 22.9% was 2.1 percentage points below the elapsed proportion, while operating profit progress of 35.9% was 10.9 percentage points above it. Accordingly, in H1 it will be necessary to check not only whether the improvement in profit margins continues, but also whether 2Q can add at least ¥6,766 million in revenue despite the effects of seasonality and business mix.

At the next results announcement, the cumulative H1 revenue and operating profit should be reviewed separately from the standalone 2Q figures. Even if H1 operating profit exceeds ¥1,250 million, if revenue falls materially short of ¥12,500 million, it will be necessary to assess separately whether the target was achieved through margin improvement and whether the full-year revenue assumptions can also be maintained.