FY2027 forecast calls for substantial revenue and profit growth, but initial traction will be assessed in FY2027-H1

In the first quarter of the fiscal year ending March 2027, revenue was ¥3,739 million, up 10.2% year on year, operating profit was ¥145 million, up 106.1%, ordinary profit was ¥109 million, up 48.7%, and net profit attributable to owners of the parent was ¥70 million, up 6.3%. The company remained profitable through operating profit, with a substantial improvement from the same period of the previous year, providing a favorable starting point for the next results.

However, the full-year forecasts are revenue of ¥25,500 million, operating profit of ¥1,000 million, ordinary profit of ¥450 million, and net profit attributable to owners of the parent of ¥221 million. First-quarter progress was 14.7% for revenue, 14.5% for operating profit, 24.2% for ordinary profit, and 31.7% for net profit. Compared with a simple 25% quarterly allocation, revenue and operating profit were still below target. The relatively high progress rates for ordinary profit and net profit also make it necessary to separate the effects of profit seasonality, non-operating items and taxes.

In the fiscal year ended March 2026, revenue increased 6.3% year on year to ¥14,517 million, while operating profit declined 9.9% to ¥370 million. By contrast, the FY2027 forecast assumes revenue growth of 75.7% and operating profit growth of 170.3%, meaning that profit growth is expected to outpace revenue growth. In FY2027-H1, the focus will be not only on revenue growth but also on whether the operating margin has improved from the same period of the previous year, and whether the increase in profit reflects improved profitability in existing businesses or scale benefits from the expansion of the consolidation scope.

The company did not revise its earnings forecast with the first-quarter results and has maintained its full-year plan. At the next results, it will be important to see whether the company discloses not only first-half actual results but also the revenue and profit required in the second half to meet the full-year forecasts of ¥25,500 million in revenue and ¥1,000 million in operating profit. In particular, if first-half progress for both revenue and operating profit remains substantially below 25%, the key question will be whether the company can quantitatively explain its reliance on the second half, facility utilization rates and the contribution from the expanded consolidation scope.