PE investment business drives first-quarter profit; sustainability to be tested in the first half

Revenue in the first quarter of the fiscal year ending March 2027 was ¥571,013 million, up 28.8% year on year; profit before tax was ¥225,814 million, up 149.9%; and quarterly profit attributable to owners of the parent was ¥148,065 million, up 75.0%. The consolidated results alone indicate substantial profit growth, but operating profit is not disclosed in the IFRS consolidated income statement, making it necessary to assess earnings quality on a profit-before-tax basis.

By segment, the PE investment business recorded revenue of ¥136,050 million and profit before tax of ¥119,916 million, representing year-on-year growth of 223.0% and 328.0%, respectively. The financial services business also recorded revenue of ¥404,773 million and profit before tax of ¥115,992 million, with revenue up 5.2% and profit before tax up 59.5%. The asset management business recorded revenue of ¥12,478 million and profit before tax of ¥2,737 million, while the next-generation business recorded revenue of ¥13,201 million and profit before tax of ¥3,610 million. The crypto-asset business, meanwhile, recorded revenue of ¥13,928 million and a profit-before-tax loss of ¥1,444 million.

Consolidated profit before tax in FY2026-H1, the prior-year period, was ¥212,104 million, while profit before tax for the investment business was ¥110,547 million in the prior-year first half. As PE investment profit had already reached ¥119,916 million in the first quarter alone, consolidated profit in FY2027-H1 is likely to exceed the prior-year period. However, quarterly results may fluctuate significantly depending on when valuation gains and disposal gains are recognized. The company has not disclosed full-year earnings guidance and has not provided specific explanations for the first-quarter changes beyond the segment figures.

At the next results announcement, it will be necessary to review not only first-half revenue and profit before tax for the PE investment business, but also bank interest income in the financial services business, securities and insurance revenue, and valuation and disposal gains in the investment business separately. In particular, even if first-half consolidated profit before tax exceeds ¥212,104 million in the prior-year period, it will be important to see whether the amount attributable to valuation gains and losses and one-time disposal gains is disclosed.