How much of the decline in existing LSS revenue can FDS and BMS offset?

Service-level revenue in FY2026 was ¥930.832 million for LSS, ¥363.885 million for FDS and ¥127.226 million for BMS, for a total of ¥1,421.944 million. LSS declined 18.6% year on year due to fewer large projects from domestic academic institutions and weaker overseas demand, while FDS rose 16.6% on strong orders for packages such as health-claim measurements, and BMS exceeded its full-year revenue target after launching in July. The key initial question is whether this pattern of new services partially offsetting the decline in existing businesses will continue in FY2027.

LSS still accounts for approximately 65.5% of combined revenue from the 3 services and remains the largest business. Without an LSS recovery, it will be difficult to achieve the FY2027 company-wide revenue forecast of ¥1,500 million on a sustainable basis. FDS grew to ¥363.885 million in FY2026, but large FDS projects are susceptible to the timing of revenue recognition, while it remains untested whether BMS can move from its first-year result of ¥127.226 million to sustained project acquisition.

At the next results announcement, it will be necessary to determine whether LSS's year-on-year revenue decline remains within 18.6% and which areas have recovered among domestic academia, pharmaceuticals, food, chemicals and overseas markets. For FDS, the key question is whether the full-year result of ¥363.885 million can be reproduced through the accumulation of multiple projects rather than a one-off large project. For BMS, the company has not yet disclosed orders, customer numbers or project counts following full-year revenue of ¥127.226 million, so we will track whether quantitative information increases in FY2027-Q1.

Although revenue by service is disclosed, operating profit, gross margin and order backlog by service are not. Accordingly, even if the revenue mix improves, it is difficult to assess the quality of growth without confirmation of the contribution to profit. In FY2027-Q1, we will examine three points together: the magnitude of the LSS decline, the FDS growth rate, and BMS revenue and orders, to determine whether the portfolio is shifting with improved margins rather than simply replacing one source of revenue with another.