Nippon Information Development Co.,Ltd.
2349・Standard Market・Information & Communication
Nippon Information Development Co.,Ltd.
2349・Standard Market・Information & Communication
Business
NID Corporation is an independent IT services company founded in 1967, comprising the parent company and four consolidated subsidiaries (NID・MI, NID Tohoku, NID air, and Tenic). Its core System Development business provides design and development of embedded, communications, and financial business software, while its System Management business offers an integrated range of services from server and network construction to security services and maintenance/operations. The customer base spans a wide range of sectors including finance and insurance, public sector and social infrastructure, transportation and telecommunications, and government agencies and organizations, with a stable customer foundation led by ANA Systems. The company also operates complementary businesses in data solutions, products, and staffing, with consolidated net sales reaching ¥26,428 million in FY2026 (ending March 2026).
Business Model
System Development Business accounts for approximately 70% of net sales, with the man-month-based business model of contracted development and quasi-delegated contracts—responding to client companies' IT investment demand—forming the foundation of earnings. System Management Business (approximately 23% of net sales) centers on continuing contracts for infrastructure construction and maintenance/operation, complementing earnings with stability. The company leverages its Core Partner system with business partners to flexibly expand its development capacity, maintaining a structure that responds to demand fluctuations by combining the training of its own engineers with external resources.
Company Strengths
From FY2022 (ending March 2022) to FY2026 (ending March 2026), revenue expanded from ¥18,252 million to ¥26,428 million, and operating profit grew from ¥2,226 million to ¥3,372 million, marking five consecutive years of growth. The operating margin has been maintained in the 12.2–12.8% range, continuing to exceed the company's management target of 10% or higher.
The customer base is diversified across multiple industries including finance/insurance, public and social infrastructure, transportation/telecommunications, and government agencies/organizations, reducing the risk of dependence on any specific industry. Sales to the largest customer, ANA Systems, amounted to only ¥2,171 million (8.2% of revenue), indicating no excessive customer concentration.
At the end of FY2026 (ending March 2026), interest-bearing debt consisted solely of ¥1 million in lease obligations, maintaining a substantially debt-free financial position. Cash and cash equivalents reached ¥17,311 million, and the equity ratio stood at a high 79.0%, reflecting strong financial soundness. Operating cash flow of ¥2,506 million was secured, enabling growth investment to be funded internally.
ENVALITH's Perspective
Performance Trend
Revenue grew from ¥18,252 million in FY2022 (ending March 2022) to ¥26,428 million in FY2026 (ending March 2026), an increase of approximately 44% over five fiscal years, continuing stable growth at an annual rate of roughly 9%. In FY2026 (ending March 2026), growth slowed somewhat to +5.8% year on year, but operating profit grew 9.6% year on year to ¥3,372 million, with profit growth outpacing revenue growth, improving the operating margin to 12.8% (12.3% in the prior period). As an external factor, resilient demand for DX and digitalization underpinned IT investment. On the other hand, selling, general and administrative expenses expanded 12.5% year on year, and the FY2027 (ending March 2027) forecast (operating profit up 0.8%) suggests a slowdown in profit growth. Operating cash flow was ¥2,506 million (down from ¥2,768 million in the prior period), affected by an increase in income tax payments.
Growth Strategy
Pursuing sustainable growth through four pillars: response to DX and new technologies, human resource strengthening, and new service creation
The company continued to expand orders in its systems development business by capturing DX and digitalization demand across multiple sectors, including finance/insurance, public/social infrastructure, and FA/equipment control. In FY2026 (ending March 2026), systems development business sales expanded 7.0% year on year to ¥18,497 million, confirming the effectiveness of these measures in actual results.
The company maintained and expanded the quality and quantity of its in-house engineers through research into development methodologies, engineer training, and strengthened new graduate and career recruitment. This enhanced human resource supply capability underpins order expansion, and recruitment and training investments are also reflected in the increase in selling, general and administrative expenses (up 12.5% year on year).
The company is capturing growing interest in new technology areas such as generative AI and data utilization to drive the creation of new services and solutions. Based on the outlook that demand for IT services will expand over the medium to long term, the company has stated its policy of pursuing order expansion by identifying growth areas.
The company captured demand for infrastructure construction and operation driven by expanded use of cloud services and strengthened cybersecurity measures, maintaining steady growth in its systems management business. In FY2026 (ending March 2026), sales rose 3.9% year on year to ¥6,056 million, and operating profit increased 12.1% year on year to ¥674 million, with profitability also improving.
Last updated: July 19, 2026