The first checkpoint is whether the strong profit growth in Q1 continues through H1 and drives results above the full-year plan.

In Q1 FY2027/3, revenue was ¥6,765.897 million and operating profit was ¥356.667 million, up 6.2% and 77.1% year on year, respectively. Revenue in the year-earlier quarter was approximately ¥6,370 million and operating profit was approximately ¥201 million, so the increase in operating profit significantly outpaced the growth in revenue. The improvement in operating profit may reflect not only higher revenue but also volume effects and better profitability.

The company’s full-year FY2027/3 forecasts are revenue of ¥26,500 million, operating profit of ¥900 million, ordinary profit of ¥1,000 million and net income attributable to owners of the parent of ¥620 million. These forecasts remained unchanged after the Q1 results. Q1 progress was approximately 25.5% for revenue, 39.6% for operating profit, 41.0% for ordinary profit and 41.8% for net income. Although progress on the profit measures is ahead of revenue, the company did not raise its forecasts as of Q1, making continued margin improvement through H1 a prerequisite for achieving the plan.

Assuming the full-year forecasts are generated evenly between H1 and H2, the H1 benchmarks would be revenue of ¥13,250 million and operating profit of ¥450 million. After deducting Q1 results, standalone Q2 would need to generate approximately ¥6,484 million in revenue and ¥93 million in operating profit. However, the company has not disclosed quantitative guidance for H1 standalone results or seasonality, so these figures should be treated not as company guidance but as mechanical benchmarks for measuring progress at the next earnings release.