FY2027-Q1 profit turnaround led by robust markets and trading

Operating revenue was ¥412 million in FY2027-Q1, an increase of ¥241 million from ¥171 million in the same period a year earlier. Operating profit changed from a loss of ¥79 million in the same period a year earlier to a profit of ¥127 million, ordinary profit changed from a loss of ¥17 million to a profit of ¥242 million, and quarterly net profit changed from a loss of ¥18 million to a profit of ¥210 million. On a quarterly basis, operating profit in the first quarter alone exceeded the ¥45 million recorded for FY2026 as a whole, making this a results period in which market conditions made a substantial contribution.

The main components of revenue were ¥89 million in commissions received, ¥261 million in trading income and losses, ¥26 million in financial income and ¥35 million in other operating revenue. The simple total is ¥411 million, but the operating revenue reported in the financial results summary is ¥412 million, presumably reflecting rounding differences from presentation in millions of yen. Trading income and losses accounted for approximately 63% of operating revenue, indicating that the sharp rise in equity markets lifted both agency brokerage and proprietary trading.

For FY2026 as a whole, commissions received were ¥266 million, trading income and losses were ¥593 million, operating revenue was ¥1,113 million and operating profit was ¥45 million. The ¥127 million operating profit in the first quarter was strong, but simply annualizing it at four times would not be appropriate. 光世証券 operates in a single Investment and Financial Services segment and does not separately disclose the profitability of consulting, agency brokerage, proprietary trading and financial income as segment profit. The activities to which the increase in revenue belongs therefore need to be tracked through the individual line items again in the next results.

For FY2027-H1, the first points to check will be whether operating revenue exceeds ¥467 million in the same period a year earlier and whether operating results can remain profitable after a loss of ¥48 million in the same period a year earlier. It will also be important to confirm whether the ¥261 million in trading income and losses is broken down into realized gains and losses on equities and derivatives, valuation gains and losses on securities held, and other items such as bonds. For commissions received, the composition of equity agency brokerage, margin trading and derivatives should also be checked to determine whether customer revenue is accumulating independently of rising markets.