Can the first-quarter return to profitability become established as progress toward the full-year plan by the first half?

FY2027 Q1 revenue was ¥16.183 billion, operating profit was ¥2.212 billion, ordinary profit was ¥2.333 billion, and net profit attributable to owners of the parent was ¥1.658 billion. In the same quarter of the previous year, revenue was ¥8.080 billion and the company reported an operating loss of ¥581 million. Revenue therefore nearly doubled, while operating results also moved sharply into the black. The first-quarter operating margin was 13.7%, an improvement of approximately 20.9 percentage points from negative 7.2% a year earlier.

For the fiscal year ended March 2026, revenue was ¥54.365 billion and operating profit was ¥6.917 billion, resulting in an operating margin of 12.7%. The company’s forecast for the fiscal year ending March 2027 is revenue of ¥64.0 billion, operating profit of ¥10.24 billion, and net profit attributable to owners of the parent of ¥7.0 billion, implying a forecast operating margin of 16.0%. Revenue is expected to increase by approximately 17.7%, while operating profit is forecast to rise by approximately 48%. It will therefore be important to determine whether the first-quarter return to profitability is not temporary and is accompanied by improvements in product mix and cost absorption.

First-quarter results represented 25.3% of the full-year revenue forecast and 21.6% of the operating profit forecast. On a simple basis of dividing the full-year forecast into four equal quarters, both revenue and profit were broadly within an acceptable range. However, the mechanical benchmark for reaching 50% of the full-year forecast on a first-half cumulative basis is ¥32.0 billion in revenue and ¥5.12 billion in operating profit. These are comparison benchmarks that do not reflect company guidance for the first half and take no account of seasonality. At the next results announcement, we will check the first-half cumulative results, whether the full-year forecast is maintained or raised, and how much of the first-quarter operating margin of 13.7% is sustained.