Business Brain Showa-Ota Inc. (TSE: 9658), a Tokyo-based IT consulting and systems-integration firm specialising in accounting, ERP, and business-process solutions, published consolidated results for FY3/2026 under IFRS. Revenue (売上収益) rose 8.5% to ¥42,100 million, business profit — which strips out non-recurring items — grew 18.4% to ¥3,399 million, and IFRS operating profit increased 13.6% to ¥3,262 million. Pre-tax profit advanced 24.0% to ¥4,156 million, and net profit attributable to owners of the parent climbed 21.0% to ¥2,987 million. Basic EPS on a post-split basis was ¥92.02 (¥71.48 the prior year); ROE on parent equity improved to 10.0% from 8.5%, and the operating margin stood at 7.7%.
ERP migration and accounting modernisation drive growth
Business Brain Showa-Ota's core business centres on the implementation and customisation of ERP platforms and accounting information systems for Japanese corporations, with expertise that spans SAP, Oracle, and proprietary Japanese accounting-software ecosystems. Demand accelerated during FY3/2026, driven by Japan's ongoing wave of enterprise-system modernisation — including Digital Transformation (DX) mandates, invoice-system (インボイス) compliance follow-on work, and a multi-year build-out of cloud-native ERP environments. Equity-method investments also contributed ¥636 million of investment income (¥460 million a year earlier), reflecting the group's growing stakes in allied software and consulting businesses.
Balance sheet: total assets rise to ¥48.5 billion; equity ratio 63.4%
Total assets at end-FY3/2026 stood at ¥48,464 million (¥45,322 million a year earlier), with total equity increasing to ¥31,220 million from ¥29,612 million. Equity attributable to owners of the parent rose to ¥30,716 million, giving a parent-equity ratio of 63.4% (64.3% in FY25; the slight decrease reflects balance-sheet consolidation from prior acquisitions). Book value per share was ¥946.40 on a post-split basis (¥887.34 a year ago). Operating cash flow improved markedly to ¥4,489 million from ¥2,841 million, and net cash at period-end rose to ¥11,730 million from ¥9,908 million.
Dividend and FY27 outlook: steady growth, modest margin caution
For FY3/2026, Business Brain Showa-Ota paid an annual dividend of ¥135 per share on a pre-split basis (¥66.50 interim + ¥68.50 year-end), representing a payout ratio of 48.9%. Following a 3-for-1 stock split effective April 1, 2026, the planned FY3/2027 annual dividend is ¥47 per share on the post-split basis (¥23.50 interim), equating to a payout ratio of 53.6%. For FY3/2027, the company guides full-year revenue of ¥43,600 million (+3.6%), business profit and operating profit of ¥3,430 million (+0.9% / +5.2%), pre-tax profit of ¥4,290 million (+3.2%), and net profit attributable to owners of ¥2,848 million (-4.6%), with EPS of ¥87.76. The modest dip in net profit guidance reflects integration costs and higher investment in human resources as the firm scales its consulting capacity to meet rising ERP-migration demand.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 42.1 | 38.8 | +8.5% |
| Business profit (¥ billion) | 3.4 | 2.9 | +18.4% |
| Operating profit (¥ billion) | 3.3 | 2.9 | +13.6% |
| Pre-tax profit (¥ billion) | 4.2 | 3.4 | +24.0% |
| Net profit attrib. to owners (¥ billion) | 3.0 | 2.5 | +21.0% |
| EPS — post-split basis (¥) | 92.02 | 71.48 | +28.7% |
| Operating margin | 7.7% | 7.4% | +0.3pp |
| ROE (parent equity) | 10.0% | 8.5% | +1.5pp |
| Equity ratio | 63.4% | 64.3% | -0.9pp |
| Operating cash flow (¥ billion) | 4.5 | 2.8 | +58.0% |
| Annual dividend — pre-split (¥) | 135.00 | 78.00 | +73.1% |
| FY27 revenue guidance (¥ billion) | 43.6 | — | +3.6% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.