JAFCO Posts ¥786 Million Ordinary Profit in First Quarter as a Standalone Company

JAFCO Group Co., Ltd. (TSE: 8595), Japan's oldest and largest venture-capital firm, reported results for the first quarter of the fiscal year ending March 2027 — the three months ended June 30, 2026 — under Japanese GAAP on a non-consolidated basis. Revenue was ¥3,073 million, operating profit ¥627 million, ordinary profit ¥786 million and quarterly net profit ¥564 million. Basic earnings per share came to ¥10.74.

First quarter as a standalone company

This is the first fiscal first quarter JAFCO has reported since becoming a standalone company. The firm shifted from consolidated to non-consolidated accounting from the third quarter of FY3/2026, after divesting its two overseas subsidiaries — JAFCO Investment (Asia Pacific) Ltd., now JIF Capital Ltd., sold in October 2025, and JAFCO America Ventures Inc., which operates as "Icon Ventures," sold in January 2026. Because no prior-year quarterly financial statements were prepared on this non-consolidated basis, the company presents no year-on-year comparison for the quarter.

Capital gains ease from a year ago

During the quarter one portfolio company completed an IPO in the venture-investment business, and one buyout-investment holding was exited through a share transfer. Even so, capital gains ran below the pace of the previous fiscal year, when realizations were stronger. The timing and scale of exits — and therefore of reported profit — remain inherently lumpy at a venture-capital firm.

Fund management and the SV8 series

In the fund-management business, management fees rose with the launch of the JAFCO SV8 series, while success fees declined on the quarter's low level of exits. The SV8 series fund, established in December 2025, targets ¥65.0 billion and is designed to eventually exceed the ¥97.8 billion committed to the preceding SV7 series. The company also increased its reserve for investment losses during the period.

Balance sheet and dividend policy

Total assets stood at ¥158,001 million and net assets at ¥133,881 million, for an equity ratio of 84.7%; book value per share was ¥2,544.31. For FY3/2027 JAFCO forecasts an annual dividend of ¥133.00 per share — an interim of at least ¥66.50 and a year-end of at least ¥66.50. Under its policy the annual dividend is set at the greater of a 6% dividend-on-equity (DOE) ratio or a 50% payout ratio, with the interim based on a 3% DOE floor. JAFCO issues no full-year earnings guidance: it says results swing widely with equity and IPO markets, so it discloses quarterly and interim figures promptly rather than publishing forecasts.

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.