Quest Co., Ltd.

Business Details

From FY2026 (ending March 2026), the previously separate segments of "System Development Business" and "Infrastructure Service Business" were integrated into a single segment, "Information Service Business (Post-Integration)." The company provides an integrated offering—from Business System Development to Infrastructure Service and Solution Service (Unite Brand) such as AI and security—to customers across diverse industries including semiconductors, manufacturing, finance, telecommunications, entertainment, public sector, transportation/logistics, and healthcare. Engineering resources were further strengthened through the consolidation of Cept Corporation as a subsidiary.

Recent Overview

Revenue grew 19.2% driven by the Cept consolidation and expansion of semiconductor and finance projects, though margins declined due to upfront investment

In FY2026 (ending March 2026), in addition to the consolidation of Cept Corporation (approximately 80 engineers, business application development for the telecommunications and finance industries; deemed acquisition date April 1, 2025) as a subsidiary, revenue reached ¥17,807 million (up 19.2% year on year) due to expanded new project orders from customers in the priority-focus semiconductor field (memory) and from customers in the stable-growth finance field. On the other hand, operating profit margin declined to 6.1% (from 7.1% in the prior period) due to upfront cost increases from improved employee treatment and education investment, and the establishment of the Kitakami office (August) and expansion of the Yokkaichi office (October). From this fiscal year, the segment was integrated and changed into the single segment "Information Service Business."

Key Products

Growth Drivers

• Expansion of new development project orders from semiconductor field customers (memory)
• Expansion of new project orders from finance field customers in the stable-growth area
• Strengthening of engineering resources and expansion of business for the telecommunications and finance industries through the consolidation of Cept Corporation as a subsidiary
• Focus on the AI and security domains (launch of the "Unite" business brand, start of "AI Studio" offering)
• Continued rise in customer companies' IT investment appetite driven by generative AI, AI agents, and DX promotion
• Advancement of business structure transformation through preparation and formulation of the Third Medium-Term Management Plan (FY2027-30) toward FY2027 (ending March 2027)

Risks

• The shift to a single segment has made it impossible to track the individual performance of the former System Development Business and Infrastructure Service Business, making profitability monitoring by business difficult
• Profit pressure from increased personnel and recruitment costs due to worsening IT talent shortages (operating profit margin declined from 7.1% in the prior period to 6.1% in the current period)
• Customer concentration risk due to revenue concentration in specific customers such as those in the semiconductor field
• Risk of curtailed customer IT investment due to macroeconomic deterioration such as price increases and US tariff policy
• Continued impact on profit margins from increased upfront costs such as expanded human capital investment and new office establishment/expansion
• Amortization burden of goodwill (¥372 million, amortized equally over 10 years) associated with the Cept acquisition