FY2027-Q1 remained profitable, but FY2027-H1 will be a period for reassessing earnings quality on a non-consolidated basis

For the first quarter of the fiscal year ending March 2027, revenue was ¥3,073 million, operating income was ¥627 million, ordinary income was ¥786 million, and quarterly net income was ¥564 million. The operating margin was approximately 20.4%, while the ordinary income margin, including non-operating income, was approximately 25.6%. Operating income, ordinary income, and net income were all positive, confirming that the company has not slipped into a short-term loss-making position.

However, because the company did not prepare financial statements for the same period of the previous year, year-on-year changes have not been disclosed. For the fiscal year ended March 2026, revenue was ¥21,619 million, operating income was ¥5,607 million, ordinary income was ¥5,905 million, and net income was ¥6,576 million, but the consolidated results through the previous fiscal year cannot simply be compared with the current non-consolidated results. For FY2027-H1, it will be important to see whether non-consolidated year-on-year comparisons become possible, or whether restated comparatives or reference figures are provided.

The company has stated that it will not issue a reasonable full-year earnings forecast because its earnings are highly exposed to stock-market and IPO-market conditions and therefore fluctuate substantially. Accordingly, rather than relying on a conventional progress rate against a forecast, the three sources of revenue, capital gains, management fees, and carried interest, need to be examined separately. For Q1, the company explained that management fees exceeded the previous fiscal year's level following the launch of the SV8 series, while carried interest was lower because EXIT activity remained subdued.

At the next interim results announcement, it will be important to review not only six-month cumulative revenue and operating income, but also the number of IPOs and M&A transactions involving domestic portfolio companies, proceeds from the sale of operating investment securities and the resulting capital gains, and the breakdown of management fees and carried interest. Segment revenue and profit are unlikely to be disclosed because the company has a single segment, making the level of disclosure for supplementary KPIs such as investment deployment, number of portfolio companies, investment balances, and EXIT transactions important for understanding the business.