AZ-Partners Co., Ltd. (TSE: 160A) reported non-consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. The operator of fee-based senior living and nursing-care residences posted revenue of ¥23,661 million, up 32.1% year-on-year from ¥17,917 million, as newly opened facilities ramped up occupancy. Operating profit rose 16.8% to ¥1,524 million from ¥1,305 million, ordinary profit advanced 19.7% to ¥1,616 million, and net profit grew 23.8% to ¥1,184 million from ¥956 million.
Top-line growth outpaces profit as new homes open
The headline takeaway is that revenue grew far faster than profit — a 32.1% sales gain against a 16.8% rise in operating profit. That gap reflects the economics of opening new senior-care residences: a freshly opened home carries near-full staffing and fixed costs from day one but fills its rooms only gradually, so the operating margin compressed to 6.4% from 7.3% a year earlier. The ordinary-profit margin held up better at 7.1% (versus 7.2%), helped by non-operating items, and the faster growth in net profit reflected a lighter tax and one-off burden than the prior year.
Earnings per share and returns
Basic earnings per share rose to ¥330.90 from ¥269.74, with diluted EPS of ¥327.52 (versus ¥266.57). Return on equity eased to 25.4% from 29.2% as the equity base expanded with retained earnings — a still-elevated level reflecting the company's relatively thin capitalization and asset-light, lease-based operating model. AZ-Partners listed on the Tokyo Stock Exchange Standard market on April 4, 2024, so FY3/2026 is its second full year as a public company.
Balance sheet and cash flow
Total assets grew to ¥24,361 million from ¥21,407 million, while net assets rose to ¥5,171 million from ¥4,162 million, lifting the equity ratio to 21.2% from 19.4%. Book value per share climbed to ¥1,440.46 from ¥1,164.14. Operating cash flow strengthened markedly to ¥4,452 million from just ¥775 million the prior year, while investing activities used ¥5,403 million on facility-related outlays. Financing activities provided ¥599 million, and period-end cash and equivalents stood at ¥3,132 million.
Dividend raised to ¥80.00
The board set the annual dividend at ¥80.00 per share (paid as a year-end dividend), up from ¥70.00 a year earlier and ¥55.00 the year before that, marking a steady progression in shareholder returns since listing. Total dividends came to ¥251 million, with a payout ratio of around 24%. For FY3/2027, management indicated it will disclose its dividend plan in due course, consistent with its practice of managing the business on an annual basis.
FY27 guidance: continued double-digit growth
For FY3/2027, AZ-Partners guides to revenue of ¥27,941 million (+18.1%), operating profit of ¥1,677 million (+10.0%), ordinary profit of ¥1,778 million (+10.1%), and net profit of ¥1,307 million (+10.4%), implying basic EPS of ¥364.44. The outlook again pairs strong revenue growth with more moderate profit growth, consistent with an expansion plan that continues to open new residences — each of which dilutes margin in its early occupancy phase before maturing into profitability. Japan's structural demographic tailwind of a rapidly ageing population underpins demand for the company's services.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 23,661 | 17,917 | +32.1% |
| Operating profit (¥ million) | 1,524 | 1,305 | +16.8% |
| Ordinary profit (¥ million) | 1,616 | 1,350 | +19.7% |
| Net profit (¥ million) | 1,184 | 956 | +23.8% |
| Basic EPS (¥) | 330.90 | 269.74 | +22.7% |
| Operating margin | 6.4% | 7.3% | -0.9pp |
| ROE | 25.4% | 29.2% | -3.8pp |
| Equity ratio | 21.2% | 19.4% | +1.8pp |
| Annual dividend (¥) | 80.00 | 70.00 | +14.3% |
| FY27 revenue guidance (¥ million) | 27,941 | — | +18.1% |
| FY27 operating profit guidance (¥ million) | 1,677 | — | +10.0% |
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.