FY2027 Q1: earnings ahead of the full-year forecast, with sustainability to be tested in Q2

Revenue in Q1 of the fiscal year ending March 2027 was ¥5,133 million, up 7.4% year on year. Operating profit was ¥395 million, up 23.0%, ordinary profit was ¥432 million, up 36.5%, and net profit attributable to owners of the parent was ¥302 million, up 169.4%. All profit levels increased alongside revenue, improving from revenue of ¥4,778 million and operating profit of ¥321 million in the year-earlier period.

The full-year forecast is revenue of ¥20,400 million, operating profit of ¥1,150 million, ordinary profit of ¥1,150 million and net profit of ¥850 million. Q1 progress against these figures was 25.2% for revenue, 34.3% for operating profit, 37.6% for ordinary profit and 35.5% for net profit. Revenue was close to a simple equal quarterly allocation, while each profit measure clearly exceeded one-quarter of the full-year forecast, indicating a start led by earnings.

However, as of Q1 the company had not disclosed progress rates against its full-year forecast or its own assessment of performance against plan. Accordingly, a practical way to assess the possibility of exceeding the full-year forecast at this stage is to see whether Q2 results exceed the simple first-half benchmarks of ¥10,200 million in revenue, ¥575 million in operating profit, ¥575 million in ordinary profit and ¥425 million in net profit.

In Q2, it will be necessary to distinguish whether revenue growth reflects improvements in volume and pricing in the electronic materials and environmental businesses, or whether earnings are ahead because of the timing of expense recognition or changes in accounting estimates. Q1 net profit rose sharply, by 169.4% year on year, making it particularly important to confirm whether the profit growth rate and the full-year forecast remain unchanged in Q2.