FTGroup CO.,LTD.
2763・Standard Market・Wholesale Trade
Business
F&Grow Corporation was founded in 1985 and transitioned to a holding company structure in 2015. It is a company listed on the TSE Standard Market (parent company: Hikari Tsushin, Inc.). The group comprises 8 consolidated subsidiaries and 1 equity-method affiliate, and operates around two core businesses: the "Network Infrastructure Business" (retail electricity "F Ene Denki," fiber-optic line service "Hikari Soku Toku," etc.) and the "Corporate Solutions Business" (sales, installation, and maintenance of UTM, file servers, LED lighting, air conditioning equipment, etc.). Its main customers are small and medium-sized enterprises and sole proprietors, and the core of its business is providing recurring-revenue services leveraging a nationwide after-sales maintenance network. As of the end of FY2026 (ending March 2026), a share exchange agreement has been concluded with Hikari Tsushin, Inc., and the company is scheduled to become a wholly owned subsidiary.
Business Model
Provides subscription-based recurring-billing services such as retail electricity, fiber-optic lines, business phone maintenance, and the membership support service "F Premium" to small and medium-sized enterprises and sole proprietors, building up monthly recurring revenue. Customers are acquired through telemarketing, door-to-door sales, and sales agency channels (such as I・C・Solution Co., Ltd.), while a nationwide after-sales service network retains customers. In FY2026 (ending March 2026), combined revenue from the two segments reached ¥32,074 million, with operating profit of ¥8,997 million, maintaining a high profit margin.
Company Strengths
For FY2026 (ending March 2026), operating profit was ¥8,935 million against revenue of ¥31,579 million (operating margin of 28.3%). Even as sales declined approximately 30% versus FY2022, operating profit expanded from ¥6,383 million in FY2022 to ¥9,282 million in FY2025, as the shift in revenue structure toward stock-type services has driven a substantial improvement in profit margins.
Building on sales partnerships with NTT East and NTT West (commenced in 2001 and 2004, respectively, with continuous automatic renewal thereafter), the company maintains a multi-channel structure combining telemarketing, door-to-door sales, and sales agents. Sales through I.C.Solution Co., Ltd. reached ¥6,049 million in FY2026 (ending March 2026), accounting for 19.2% of total sales, demonstrating stable customer acquisition capability via the agent channel.
As of the end of FY2026 (ending March 2026), total assets stood at ¥45,345 million against total liabilities of ¥10,058 million and total equity of ¥35,287 million, reflecting a high degree of financial soundness. The company held cash and cash equivalents of ¥18,057 million, and interest-bearing debt has been consistently repaid (down ¥899 million during the period). Surplus funds are invested in marketable securities and time deposits, giving the company the financial capacity to respond flexibly to M&A and new business investment opportunities.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥45,241 million in FY2022 (ended March 2022) and has declined for five consecutive fiscal years, falling to ¥31,579 million in FY2026 (ending March 2026), down 8.8% year on year. The primary cause was a decline in retail electricity unit prices and sales volume in the network infrastructure business. Meanwhile, operating profit has continued to improve since FY2024 (ended March 2024), reaching a record high of ¥8,935 million in FY2026 (ending March 2026), with an operating margin of 28.3%. However, this partly reflects an external factor: the subdued level of wholesale electricity market prices, which held down electricity costs. For FY2027 (ending March 2027), a sharp decline in operating profit to ¥5,700 million (down 36.2% year on year) is forecast, driven by the continued suppression of new customer acquisition in the electricity business, the disappearance of gains from the transfer of the water-saving business, and the loss of one-time gains from the corporate solutions business. The profitability trend is expected to shift into a deteriorating phase.
Growth Strategy
Building up recurring revenue, expanding the agency network, and pursuing M&A to grow the business, with a new phase of development expected under USEN-NEXT HOLDINGS.
The company continues to expand monthly subscription-based services, including its proprietary fiber-optic brand "Hikari Soku Toku", the corporate-focused "FT Hikari" and "F Premium", and DX support services, in order to strengthen a stable revenue base characterized by low churn rates. Fiber-optic services continued to perform steadily in FY2026 (ending March 2026).
In addition to strengthening acquisition of existing agencies centered on FT Communications (now: I・C・Solution), the company actively develops new agencies to expand sales channels for its telecommunications and environmental energy-saving services. This remains a continuing initiative in FY2027 (ending March 2027).
The company continues to pursue capital alliances, business alliances, and M&A with domestic companies that can generate synergies with its existing businesses, aiming for sustainable growth. In FY2026 (ending March 2026), it transferred its water-saving business through a corporate split (proceeds of ¥2,296 million), optimizing its business portfolio.
On March 31, 2026, the company entered into a share exchange agreement with USEN-NEXT HOLDINGS. Following the effectuation of the exchange on August 1, 2026, the company is expected to develop its business as part of the USEN-NEXT HOLDINGS group, leveraging group synergies. With the scheduled delisting on July 30, 2026, its growth strategy as an independently listed company will come to an end.
Last updated: July 19, 2026