Q1 revenue and operating profit increased, but profit progress against the full-year forecast was low

In the first quarter from April to June 2026, revenue was ¥1,830.1 million, operating profit was ¥98.9 million, ordinary profit was ¥122.9 million, and net income attributable to owners of the parent was ¥102.9 million. Year on year, revenue increased 10.6%, operating profit 64.2%, ordinary profit 61.5%, and net income 292.2%, representing a strong start on the surface.

The full-year forecast for the fiscal year ending March 2027 is revenue of ¥8,400 million, operating profit of ¥630 million, ordinary profit of ¥650 million, and net income of ¥540 million. Q1 progress was 21.8% for revenue, 15.7% for operating profit, and 19.1% for net income, with operating profit 9.3 percentage points below the 25% implied by a simple equal quarterly run rate. Although this is a mechanical benchmark that does not account for seasonality, the slower build-up in profit than in revenue needs to be reconfirmed in FY2027-H1.

To reach revenue of ¥4,200 million and operating profit of ¥315.0 million, equivalent to 50% of the full-year forecast, standalone Q2 revenue of ¥2,370.1 million and operating profit of ¥216.1 million will be required. For Q1, the company cited the strength of existing businesses and demand brought forward in some businesses against a backdrop of uncertainty over the outlook for raw-material procurement as factors behind the increases in revenue and profit. It is therefore important to determine whether these levels can be achieved in Q2 and whether the brought-forward demand will result in a subsequent reactionary decline.

As of Q1, the company had revised its earnings forecast from the previous forecast, but the pre-revision figures were not disclosed, so the extent of the upward revision cannot be confirmed. Year-on-year segment results were also not provided numerically. In FY2027-H1, it will be necessary to examine not only cumulative progress in revenue and operating profit, but also the factors behind the standalone Q2 change, profit margins in the public and private-sector fields, and whether there is any reactionary decline after the demand pull-forward.