Can the near-elimination of the operating loss reverse the full-year loss forecast?

Revenue in the FY2026 interim period was ¥108.512 billion, up 15.8% from ¥93.694 billion in the same period of the previous year. The operating result improved from an operating loss of ¥1.493 billion in the same period of the previous year to an operating loss of ¥21 million, with the loss narrowing by ¥1.472 billion. The ordinary result turned from an ordinary loss of ¥618 million to an ordinary profit of ¥1.738 billion, while interim net income attributable to owners of the parent turned from a net loss of ¥3.275 billion to net income of ¥1.349 billion.

The full-year forecasts remain unchanged at revenue of ¥200 billion, an operating loss of ¥1 billion, ordinary profit of ¥2.7 billion and net income attributable to owners of the parent of ¥500 million. Revenue had reached 54.3% of the full-year forecast and ordinary profit 64.4% by the interim period, while the operating result was already close to breakeven. On a simple calculation, achieving the forecast full-year operating loss of ¥1 billion would imply an operating loss of approximately ¥979 million in the second half, so even a return to profitability in Q3 would not necessarily lead to an upward revision of the company’s forecast.

The company also said that vehicle production volumes had declined year on year across regions worldwide, with production in its key European market also decreasing. Higher production volumes in India, the weaker yen, increased sales volumes and cost reductions contributed to the improvement, but the breakdown of sales volumes, regional profit and cost reductions has not been disclosed quantitatively. In FY2026 Q3, the key points will be whether the operating result turns positive, whether the ¥1 billion full-year operating loss forecast is maintained, and whether the company can explain in monetary terms the volume effect in India and the impact of the slowdown in Europe.