Reiwa Accounting FY26 Net Profit Jumps 40% to ¥1.4 Billion as Revenue Climbs 15%; ROE Near 50%

Reiwa Accounting Holdings Co., Ltd. (TSE: 296A), a Tokyo-listed accounting, BPO and financial back-office services group, reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 14.6% year-on-year to ¥5,705 million, while operating profit climbed 33.0% to ¥1,988 million from ¥1,494 million — a sharp profit gain that outpaced top-line growth. Ordinary profit advanced 34.9% to ¥1,994 million, net profit attributable to owners of the parent rose 40.0% to ¥1,421 million from ¥1,014 million, and basic EPS came in at ¥37.81 versus ¥26.96. The operating margin widened to 34.8%, and return on equity reached an exceptional 49.6%.

Margins expand and ROE approaches 50%

The standout feature of the year was the combination of strong growth and unusually high returns: revenue grew nearly 15%, yet operating profit jumped a third and net profit climbed 40%. That points to genuine operating leverage in this recently listed accounting and BPO services group, whose financial back-office work scales efficiently as client volumes rise. The headline figure was the ROE of 49.6% — up from 37.3% the prior year and exceptionally high for any listed company — reflecting both rich margins and a capital-light services model that earns heavily on a modest equity base.

Solid balance sheet, strong cash generation

Despite earning a near-50% return on equity, Reiwa Accounting carries a comfortable balance sheet. Total assets stood at ¥4,706 million and net assets at ¥3,121 million, leaving an equity ratio of 65.4% — broadly unchanged from the prior year's 65.7%. Book value per share reached ¥81.38. Cash generation was robust: operating cash flow came in at ¥1,347 million, and period-end cash and equivalents stood at ¥2,405 million, giving the company ample flexibility to fund growth, pursue further consolidation, or sustain shareholder returns. Growth during the year was helped by the addition of Miracle Keiri Co., Ltd. to the consolidation scope.

Dividend lifted to ¥33; payout near 86%

The FY3/2026 annual dividend was raised to ¥33.00 per share (¥13.00 interim plus ¥20.00 year-end), up from ¥32.50 the prior year, for a payout ratio of roughly 86%. The generous distribution reflects the group's high cash conversion and the comfort of a 65% equity ratio. Keeping a high payout while still funding double-digit growth underscores the capital-light economics of the accounting and BPO business, which requires relatively little reinvested capital to expand.

FY27 guidance: double-digit revenue growth, flat net profit

For the fiscal year ending March 31, 2027 (FY3/2027), management guides for continued top-line momentum but a flatter bottom line. Revenue is seen up 10.4% to ¥6,300 million, with operating profit up 8.7% to ¥2,160 million and ordinary profit up 8.3% to ¥2,160 million. Net profit attributable to owners, however, is guided up just 1.3% to ¥1,440 million, with EPS of ¥38.50. The near-flat net-profit forecast against high-single-digit operating-profit growth reflects a higher effective tax base in FY3/2027, as the prior year benefited from a lower effective rate, rather than any weakening of the underlying business. With double-digit revenue growth, ~35% operating margins, and a near-50% ROE, the group enters the new year from a position of considerable strength.

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