Q1 delivered higher revenue and operating profit, but profit progress against the full-year plan remains low

The first quarter, from April through June 2026, generated revenue of ¥7,215.660 million, operating profit of ¥110.837 million, ordinary profit of ¥132.708 million and net profit attributable to owners of the parent of approximately ¥60 million. Revenue was ¥6,599.252 million and operating profit was ¥61.788 million in the same quarter of the previous year, representing a revenue increase of ¥616.408 million and an operating profit increase of ¥49.049 million. Operating profit growth of 79.4%, substantially above the 9.3% increase in revenue, is positive, but the absolute level of profit remains limited at ¥110 million.

The company maintained its full-year forecasts for the fiscal year ending March 2027 at revenue of ¥38,700 million, operating profit of ¥1,840 million, ordinary profit of ¥1,820 million and net profit of ¥1,080 million. Progress against the full-year forecasts based on Q1 results was approximately 18.6% for revenue, 6.0% for operating profit and 5.6% for net profit. After Q1, the company needs to generate the remaining ¥31,485 million in revenue and approximately ¥1,730 million in operating profit over the next 9 months. In the interim results, it will be necessary to review not only simple year-on-year comparisons but also cumulative progress against the full-year plan.

The Q1 operating margin was approximately 1.54%, calculated as ¥110.837 million divided by revenue of ¥7,215.660 million, an improvement of approximately 0.60 percentage points from approximately 0.94% in the same quarter of the previous year. By contrast, the operating margin implied by the full-year forecast is approximately 4.75%, calculated as ¥1,840 million divided by ¥38,700 million, leaving a gap of approximately 3.2 percentage points versus the Q1 result. The source does not provide quantitative disclosure of seasonality or the earnings structure by quarter, so it remains unconfirmed whether this gap can be explained by normal seasonal factors or assumes further improvement in gross margin and sales volume in the first half.

The company plan currently available is centered on the full-year forecasts, and no separate revenue or operating profit forecasts have been provided for the period from April through September 2026, corresponding to FY2027-H1. In the next results release, it will be necessary to review cumulative first-half revenue and operating profit, progress against the full-year forecasts and whether the full-year forecasts are revised. In particular, the extent to which first-half operating profit builds on the Q1 figure of ¥110 million, and whether the ¥1,730 million still required to meet the full-year target is excessively dependent on the second half, will be key points in assessing the achievability of the plan.