Profit is progressing faster than revenue against the FY2027 full-year forecast

In the first quarter of the fiscal year ending March 2027, revenue was ¥39,036 million, operating profit was ¥3,000 million, ordinary profit was ¥3,114 million, and profit attributable to owners of the parent was ¥1,980 million. Year on year, these figures increased by 2.7%, 7.0%, 7.2% and 6.3%, respectively, with profit items growing faster than revenue. All major profit levels, including ordinary profit and net profit, remained in positive territory.

The full-year forecast is revenue of ¥155,000 million, operating profit of ¥10,500 million, ordinary profit of ¥11,000 million and net profit of ¥7,000 million. First-quarter progress is 25.2% for revenue, 28.6% for operating profit, 28.3% for ordinary profit and 28.3% for net profit. Revenue is broadly in line with the 25% of the year elapsed, while operating profit is 3.6 percentage points ahead of that pace. At this point, profit is therefore progressing faster than revenue. However, the company has not disclosed any seasonality or concentration of earnings in the first or second half, so there is no basis for judging full-year achievement solely by simply annualising the quarter.

In the first quarter of the previous year, revenue was ¥38,026 million and operating profit was ¥2,804 million, producing an operating margin of approximately 7.4%. The current first-quarter operating margin was approximately 7.7%, calculated as ¥3,000 million divided by ¥39,036 million, an increase of approximately 0.3 percentage points year on year. The operating margin for the fiscal year ended March 2026 was approximately 6.9%. The latest margin is therefore above the previous full-year level, but it will be important to see whether this difference is maintained through the first half.

For comparison, the cumulative first-half results for the fiscal year ended March 2026 were revenue of ¥75,628 million, operating profit of ¥5,915 million, ordinary profit of ¥6,118 million and net profit of ¥4,219 million. Based on the company’s forecast, the mechanical 50% benchmarks for the first half of the fiscal year ending March 2027 are revenue of ¥77,500 million, operating profit of ¥5,250 million, ordinary profit of ¥5,500 million and net profit of ¥3,500 million. Accordingly, in the first-half results, it will be necessary to assess not only year-on-year changes but also whether the earnings mix has shifted so that revenue falls short of ¥77,500 million while profit exceeds ¥5,250 million.

At the next earnings release, we will monitor whether operating profit progress continues to exceed revenue progress and whether the operating margin can remain around the first-quarter level of 7.7%. In addition to cumulative first-half revenue, operating profit, ordinary profit and net profit, whether the company maintains or revises its full-year forecast based on the first-half results will help determine whether the current profit lead is temporary.