Revenue progress is behind the full-year plan, increasing reliance on second-half profit

First-quarter revenue for the fiscal year ending March 2027 was ¥2,944 million, representing 19.1% progress against the full-year revenue forecast of ¥15,380 million. The mechanical 25% benchmark after one quarter was ¥3,845 million, leaving actual revenue ¥901 million below that level. Operating results were a loss of ¥191 million, meaning the year began with a recovery from a loss assumed in the full-year operating profit forecast of ¥833 million.

Looking at prior first-half and full-year results, for the fiscal year ended March 2026, first-half revenue was ¥6,195 million and first-half operating results were a ¥207 million loss, compared with full-year revenue of ¥14,563 million and full-year operating profit of ¥604 million. Subtracting the first half from the full year gives second-half revenue of ¥8,368 million and second-half operating profit of ¥811 million. For the fiscal year ended March 2025, first-half revenue was ¥7,148 million and operating profit was ¥38 million, compared with second-half revenue of ¥8,375 million and operating profit of ¥262 million. Revenue tends to be concentrated in the second half, while profit fluctuates considerably.

The current full-year plan calls for revenue growth of 5.6% and operating profit growth of 38.0% from the fiscal year ended March 2026. If first-half operating results for the fiscal year ending March 2027 remain at the prior-year level of a ¥207 million loss, second-half operating profit of ¥1,040 million would be required to achieve the ¥833 million full-year target. This would be ¥229 million, or approximately 28.2%, above the prior-year second-half figure of ¥811 million, so a normal seasonal recovery would not be sufficient.

At the next results announcement, we will therefore want to check not only whether first-half revenue reaches ¥7,690 million, half of the full-year plan, but also whether the operating loss narrows beyond the ¥207 million loss. In addition to first-half revenue and operating results, important indicators will be whether new products, cost reductions, and sales initiatives supporting the second-half recovery are explained in monetary terms, and whether the full-year forecast is revised.