Whether the full-year profit plan after the upward revision can be demonstrated in the first half

In Q1 of the fiscal year ending March 2027, revenue was ¥83,927 million, up 5.0% year on year, and operating profit was ¥5,604 million, up 59.0%. Ordinary profit was ¥6,246 million, up 84.6%, and quarterly net income attributable to owners of the parent was ¥4,353 million, up 22.5%, with profit growing faster than the top line. The operating margin also rose by approximately 2.3 percentage points, from 4.4% in the same quarter of the previous year to 6.7%.

Calculated against the full-year forecasts, Q1 revenue was 83,927 million ÷ 335,000 million, or 25.1%, and operating profit was 5,604 million ÷ 19,500 million, or 28.7%. Progress was 30.5% for ordinary profit and 32.2% for net income, with the profit items ahead of revenue. The simple 50% first-half benchmarks are revenue of ¥167,500 million and operating profit of ¥9,750 million, but the company has not provided a first-half forecast or quarterly allocation of profit, so these should not be treated as targets that disregard seasonality.

At the same time as announcing its Q1 results, the company left its full-year revenue forecast unchanged at ¥335,000 million, while raising its operating profit forecast from ¥18,000 million to ¥19,500 million, by ¥1,500 million; its ordinary profit forecast from ¥18,000 million to ¥20,500 million, by ¥2,500 million; and its net income forecast from ¥12,000 million to ¥13,500 million, by ¥1,500 million. The company attributed the upward revisions to the expected results of initiatives to strengthen earnings power from Q2 onward. Accordingly, in FY2027-H1 we will check whether improvements in operating margin and profit amount are continuing, rather than simply attributing the results to the Q1 foreign-exchange effect.

The Q1 disclosure did not provide order intake, order backlog, actual sales volumes or a quarterly profit plan. Therefore, in the first-half results, it is important to check not only the increase from cumulative revenue of ¥83,927 million, but also how the ¥5,604 million in operating profit accumulated and what factors filled the required amount against the full-year forecast of ¥19,500 million, which is not the remaining 14, -? million but, more precisely, ¥13,896 million.