Will the high-margin growth seen in Q1 be repeated in FY2027-H1?

Revenue in Q1 of the fiscal year ending March 2027 was ¥1,190 million, up 5.1% year on year. Operating profit was ¥183 million, up 83.7%; ordinary profit was ¥180 million, up 87.1%; and quarterly net profit, rather than interim net profit, was ¥120 million, up 59.4%. Operating profit growth significantly outpaced revenue growth, and the Q1 operating margin reached approximately 15.4%.

The full-year forecasts are revenue of ¥5,230 million, operating profit of ¥523 million, ordinary profit of ¥515 million and net profit of ¥362 million. As of Q1, progress against these forecasts was approximately 22.8% for revenue, 35.0% for operating profit, 35.0% for ordinary profit and 33.1% for net profit. Because quarterly seasonality is not explicitly stated in the available sources, the initial benchmark for assessing full-year achievement should be whether revenue of ¥2,615 million and operating profit of ¥261.5 million can be secured in the first half, rather than simply using 25% as the benchmark.

In FY2026, revenue was ¥4,747 million, up 7.9% from the previous fiscal year, while operating profit fell 19.2% to ¥310 million and the operating margin declined to approximately 6.5%. By contrast, the Q1 operating margin was approximately 15.4%, representing a substantial improvement. It is not yet possible to determine whether this improvement is temporary, resulting from the accumulation of new contracts, cost reductions or the timing of expense recognition, or structural and sustainable throughout the first half.

The company did not prepare a quarterly cash flow statement for Q1, and cash flow from operating activities, investing activities and financing activities were not disclosed. In FY2027-H1, it will be necessary to monitor not only progress in revenue and operating profit, but also whether the operating margin clearly exceeds FY2026's full-year 6.5%, whether profit growth is accompanied by operating cash flow, and whether the company provides an assessment of the ¥523 million full-year operating profit forecast.