INES (9742) Q1 2027 earnings summary

Executive summary

• Net sales rose 12.7% year-over-year to ¥8,692 million for the quarter ended June 30, 2026, driven by progress in standardizing local government information systems.

• Operating loss narrowed significantly to ¥78 million from ¥878 million year-over-year, with improvement due to reduced depreciation from development investments.

• Net loss attributable to owners of parent improved to ¥80 million from ¥618 million year-over-year.

• Comprehensive income turned positive at ¥74 million, compared to a loss of ¥585 million in the prior year.

Financial highlights

• Gross profit nearly doubled year-over-year, reaching ¥1,529 million from ¥766 million; gross margin improved by 7.7 points to 17.6%.

• Operating expenses remained stable at ¥1,608 million versus ¥1,645 million year-over-year.

• Operating profit: ¥-78 million, an improvement of ¥800 million year-over-year.

• Ordinary loss improved to ¥60 million from ¥861 million year-over-year.

• EBITDA: ¥644 million, up ¥1,101 million year-over-year.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2027: net sales of ¥40,000 million (+9.2%), operating and ordinary profit of ¥2,500 million, net profit of ¥1,700 million, EPS of ¥81.64, and annual dividend per share of ¥55 (+¥5 year-over-year).