ENVALITH
デジタルグリッド株式会社 logo

DIGITAL GRID Corporation

350A・Growth Market・Electric Power & Gas

Official website
デジタルグリッド株式会社 logo
DIGITAL GRID Corporation350A

Business

Digital Grid, Inc. operates under the mission of "realizing the democratization of energy," with its core business being the DGP (Digital Grid Platform), a power trading platform commercially launched in 2020. DGP provides a framework in which power producers and consumers can trade electricity directly without requiring specialized knowledge or licenses, and its AI-based supply-demand management system fully automates the complex balancing of supply and demand. Its primary customers are corporate consumers with high-voltage and extra-high-voltage contracts; as of the end of July 2025, the number of contracted sites reached 4,901, with annual power volume handled reaching approximately 2.4 billion kWh. The company is organized into three segments—the Electric Power Platform Business (non-renewable energy), the Renewable Energy Platform Business (corporate PPAs and non-fossil fuel certificates), and the Balancing Power Business (grid-connected storage battery aggregation)—and listed on the Tokyo Stock Exchange Growth Market in April 2025.

Business Model

The Group receives fees only from demand-side customers, based on the electricity transaction volume (GMV) on the DGP (Digital Grid Platform). Since all power procurement costs (JEPX market prices, wheeling charges, renewable energy levies, etc.) are borne by demand-side customers at cost, the Company in principle does not bear market price fluctuation risk. Cost of sales mainly consists of agency commission expenses, and in FY2025 (ended July 2025), the gross profit margin remained at a high level of 74.4% and the operating margin at 44.4%. In the Renewable Energy Platform Business, supply-demand management fees based on long-term PPA contracts of approximately 20 years accumulate as recurring (stock-type) revenue.

Company Strengths

The company has fully internalized a supply-demand management system utilizing an AI model co-developed with the University of Tokyo. Among DORA's four metrics, it achieved the top rank of "Elite Level" in three categories—deployment frequency, change lead time, and change failure rate (evaluation period: August 2022 to July 2024). This has enabled fee levels that are more competitive than those of conventional high-cost retail electricity providers, with the Electric Power Platform Business achieving an operating margin of 65.1%.

GMV (electricity volume handled) expanded approximately 15-fold, from 51GWh in Q1 FY2023 (ending July 2023) to 753GWh in Q4 FY2025 (ending July 2025). The number of contracted sites also increased over the same period, from 256 sites to 4,901 sites. The average monthly churn rate remained low at approximately 2.9% (August 2024 to July 2025), confirming continued customer usage.

The registered facility capacity on the corporate PPA matching platform "RE Bridge" exceeded 2GW (as of end of July 2025), with over 100 registered power generators. Cumulative brokered volume for the FIT non-fossil certificate proxy procurement service "Eco no Hashi" surpassed 2 billion kWh. Contracts in the Renewable Energy Platform Business are primarily long-term, spanning approximately 20 years, and are expected to result in an accumulation of long-term recurring revenue.

ENVALITH's Perspective

As of June 11, 2026, the company revised its full-year consolidated earnings forecast. Net sales were raised to ¥6,595 million (+5.0% vs. previous forecast), operating profit to ¥2,836 million (+20.0%), ordinary profit to ¥2,660 million (+25.0%), and net income attributable to owners of parent to ¥1,919 million (+30.0%). This reflects revenue recognition in both the Electric Power Platform Business and Renewable Energy Platform Business exceeding the initial budget, as well as a contribution from the Balancing Power Business turning profitable. The progress rate against the full-year forecast through the cumulative third quarter stood at a high level of 77.4% for net sales and 86.3% for operating profit, indicating high confidence in achieving the full-year forecast.

Segment profit in the Electric Power Platform Business declined slightly by 1.0% year on year to ¥2,859 million. Despite a 2.9% year-on-year increase in net sales, profit decreased, confirming a decline in profit margin. In addition, selling, general and administrative expenses increased 37.0% year on year, from ¥1,217 million to ¥1,667 million, as expanded investment in personnel and systems is squeezing the profit margin. The balance between growth investment and maintaining profit margins will be a key point for future evaluation.

At the end of the third quarter under review, accounts payable stood at ¥2,514 million (up ¥1,939 million from the previous fiscal year-end), and short-term borrowings surged to ¥1,040 million (up ¥780 million from the previous fiscal year-end). Of total assets of ¥21,483 million, accounts receivable amounted to ¥10,109 million, accounting for approximately 47% of the asset structure; while this stems from the electricity settlement cycle, it increases the complexity of cash flow management. Although the equity ratio is on an improving trend at 48.0% (46.5% at the previous fiscal year-end), continued attention is needed regarding the external risk of increased funding needs in the event of a sudden change in electricity market conditions.

Growth Strategy

Three-axis growth strategy: deepening the Electric Power Platform Business, accumulating stock revenue in the Renewable Energy Platform Business, and expanding the Balancing Power Business

The company continues to expand collaboration with partner companies (agencies), strengthen customer success initiatives through its inside sales team, and offer made-to-order power proposals designed to mitigate the risk of price surges. Cumulative net sales for the third quarter of the current fiscal year reached ¥4,357 million (up 2.9% year on year), maintaining stable growth, although segment profit declined slightly, making profitability maintenance a challenge.

The company held the seventh RE Bridge matching event, focusing on increasing contracted capacity. It also continued to expand the volume of FIT non-fossil certificate brokerage handled through Eco no Hashi. Cumulative net sales for the third quarter of the current fiscal year reached ¥493 million (up 54.6% year on year), with segment profit of ¥254 million (up 113.5% year on year), reflecting rapid growth. Long-term stock revenue is steadily building up as contracted projects begin operation.

The company operates an aggregation service that provides optimal operation of grid-connected battery storage systems as its "Balancing Power Business." It achieved a turnaround to profitability, with segment profit of ¥20 million in the cumulative third quarter of the current fiscal year, compared to a segment loss of ¥174 million in the same period of the previous fiscal year. Property, plant and equipment increased by ¥1,169 million from the end of the previous fiscal year, reflecting ongoing capital investment in battery storage systems.

Last updated: July 17, 2026