Ishin Co., Ltd.

Business Details

A BtoG-focused business connecting local governments and private companies. Provides marketing, sales promotion, and sales support for large and mid-sized companies targeting local governments, covering themes such as disaster prevention, DX, health and welfare, and regional revitalization. Consists of three pillars: the BtoG platform, the information magazine 'Jichitai Tsushin' (Municipality Communications), and solutions such as telemarketing and webinars. The segment employs more than 10 former government officials, and its ability to provide end-to-end support from strategy formulation to sales assistance is a source of competitive advantage. In FY2026 (ending March 2026), while core BtoG solution services grew, net sales remained roughly flat year on year due to the impact of a large contract cancellation.

Recent Overview

Core BtoG services grew, but a large contract cancellation kept sales flat year on year while profit declined slightly

In the Public-Private Co-Creation Business for FY2026 (ending March 2026), net sales were ¥552 million (+1.1% year on year) and segment profit was ¥164 million (-3.0% year on year). While core BtoG solution services grew, sales growth remained limited due to the impact of a large contract cancellation. Profit also declined slightly due to increased costs. For the next fiscal year, FY2027 (ending March 2027), the policy is to maximize sales through expansion of support areas in BtoG solutions.

Key Products

Growth Drivers

• Market expansion driven by growing demand for DX promotion and public-private collaboration among local governments (target market estimated at approximately ¥60 billion)
• MRR accumulation through increased orders for the high-priced premium plan of the BtoG platform
• Sales maximization through expansion of support areas in BtoG solutions (policy for the next fiscal year)
• High-value-added proposal capability from more than 10 former government officials and the brand recognition advantage of 'Jichitai Tsushin'
• Positioned as a 'continuously growing area' in the medium-term management plan, with a business foundation strengthening strategy including consideration of M&A

Risks

• Risk of sales fluctuation due to cancellation of large contracts (actually materialized in FY2026 (ending March 2026))
• Demand fluctuation risk dependent on local government DX budgets and policy trends
• Cost pressure from increased outsourcing expenses
• Declining trend in the number of solution service contract clients (122 companies in FY2024 (ended March 2024) → 99 companies in FY2025 (ended March 2025))
• Difficulty securing specialized personnel (such as former government officials) amid labor shortages and intensifying recruitment competition
• Risk of constraints on sales activities due to strengthened security requirements and changes in local government procurement rules