Can the substantial revenue and profit growth seen in Q1 be sustained through H1 FY2027?

Revenue in Q1 of the fiscal year ending March 2027 was ¥5,474 million and operating profit was ¥1,643 million, up 40.3% and 66.3%, respectively, from ¥3,901 million and ¥988 million a year earlier. Operating profit growth exceeded revenue growth by 26.0 percentage points, while the operating margin rose 4.7 percentage points, from approximately 25.3% to approximately 30.0%. The first point to confirm is whether revenue growth and margin improvement will continue together in H1.

Q1 progress against the full-year forecast was approximately 27.8% for revenue and 32.9% for operating profit. If half of the full-year forecast is used as a simple H1 benchmark, the reference figures are ¥9,850 million in revenue and ¥2,500 million in operating profit, but these are not H1 targets disclosed by the company. A formal assessment of progress that takes seasonality and delivery timing into account will require the H1 results, as well as an assessment of how much of the ¥14,226 million in revenue and ¥3,357 million in operating profit remaining for the second half is supported by the order backlog.

Revenue and operating profit for the fiscal year ended March 2026 were ¥17,922 million and ¥4,589 million, respectively, while the full-year forecasts for the fiscal year ending March 2027 are ¥19,700 million and ¥5,000 million. This represents planned growth of 9.9% and 9.0%, respectively. Q1 revenue growth of 40.3% and operating profit growth of 66.3% are well above the full-year assumptions, but the materials alone do not show whether projects or product deliveries were concentrated in Q1. It will be necessary to determine in H1 whether leaving the full-year forecast unchanged is reasonable or whether there is room for an upward revision.

The company cited domestic capital investment demand, factory zone air-conditioning units, and new construction and replacement projects at commercial facilities as factors behind Q1's revenue and profit growth. However, order intake and order backlog amounts have not been disclosed, so the extent to which Q1's strong performance will carry over into revenue after H1 cannot be verified numerically. In H1, the key checks will be not only whether the full-year plan is revised, but also the order backlog amount, delivery timing, and whether the operating margin can be maintained.