Q1 operating profit growth provides a foothold toward the ¥4.8 billion full-year target, but H1 will be the point at which the viability of that progress is tested

In Q1 of the fiscal year ending March 2027, revenue was ¥4,624 million, operating profit was ¥555 million, ordinary profit was ¥509 million, and net income attributable to owners of the parent was ¥357 million. Revenue rose 9.2% year on year and operating profit increased 28.5%, while ordinary profit rose 3.5% and net income increased only 0.8%. Accordingly, profit growth was clearly evident at the operating level in Q1, but it is still difficult to say that the same strength has carried through to net income after non-operating items and taxes.

The full-year forecasts are revenue of ¥28,000 million, operating profit of ¥4,800 million, ordinary profit of ¥4,900 million, and net income of ¥3,400 million, with no revisions as of Q1. On a simple calculation, progress was 16.5% for revenue and 11.6% for operating profit, below the mechanical progress level after one-quarter of the year. However, the company has seasonal exposure because shipments and customer acceptance are weighted toward the end of the fiscal year. In the fiscal year ended March 2026, 34.7% of revenue and 44.9% of operating profit were concentrated in Q4, so it is too early to judge whether the full-year targets will be missed based solely on Q1 progress.

The comparable first half of the fiscal year ended March 2026 generated revenue of ¥9,222 million and operating profit of ¥1,156 million. If H1 revenue exceeds ¥9,222 million and operating profit also surpasses ¥1,156 million, it will be easier to conclude that Q1's revenue and profit growth continued on an H1 basis. Conversely, if the increase from Q1 operating profit of ¥555 million to cumulative Q2 results is weak, it will be necessary to assess whether the projects that contributed in Q1 were one-off in nature and whether the plan is achievable given its weighting toward the second half.

At the next results announcement, we will look not only at whether the full-year forecasts are maintained, but also at whether the improvement in the Q1 operating margin, from approximately 10.2% a year earlier to approximately 12.0%, was driven by system upgrades, new solutions, changes in the scope of consolidation, or cost of sales and SG&A expenses. An important disclosure point will be whether the company presents progress in revenue, operating profit, ordinary profit, and net income together, clearly showing H1 results against the ¥4,800 million full-year operating profit forecast and the amount of profit required in the second half.