DIGITAL GRID (350A) Q4 2026 earnings summary

Executive summary

• Achieved seventh consecutive year of growth in net sales and profit, with net sales rising 15.6% YoY to JPY 7,113.9 million and profit attributable to owners of parent up 9.0% to JPY 2,037.7 million, marking a strong first year as a listed company.

• Nearly completed investment decisions for a JPY 10 billion, three-year grid-scale battery plan.

• Contracted capacity grew 38% year-over-year, with improved customer retention and lower churn.

• Battery business entered monetization phase, expected to generate over JPY 2 billion in net sales in FYE July 2027.

• Expanded Power Platform, Renewable Energy Platform, and Power Balancing businesses, with notable growth in renewable energy and grid-scale battery services.

Financial highlights

• Net sales: JPY 7.1B (+15.6% YoY), operating profit: JPY 3.0B (+10.0% YoY), ordinary profit: JPY 2.9B (+11.3% YoY), net income: JPY 2.0B (+9.0% YoY).

• Gross profit margin improved to 81.4% (+7.0pt YoY), with gross profit at JPY 5,793.6 million.

• SG&A expenses rose 51.0% YoY, mainly due to increased hiring and marketing.

• Cash and cash equivalents at year-end totaled JPY 6,295.8 million, up JPY 1,647.5 million YoY.

• ROE at 21.7%, EPS at JPY 50.8, equity ratio at 34.1%.

Outlook and guidance

• FYE July 2027 forecast: net sales to grow +12% YoY to JPY 7.97B, but operating profit expected to decline 5.0% to JPY 2,865 million and profit attributable to owners of parent to fall 17.9% to JPY 1,673 million.

• Medium-term plan targets consolidated net sales above JPY 10 billion and adjusted EBITDA above JPY 4 billion by FYE July 2029, with ROE of 20%+, operating profit margin of 30%+, and adjusted EBITDA margin of 40%+.

• Battery business expected to quadruple net sales YoY in FYE July 2027.