SYSTEM RESEARCH CO.,LTD.
3771・Prime Market・Information & Communication
Business
System Research Co., Ltd. is an independent comprehensive information services company founded in 1981. The company operates on two core pillars, SI Service Operations (contract-based system construction) and Software Development Operations (quasi-mandate/dispatch-based on-site development), handling the development and maintenance of core systems across a wide range of industries including manufacturing, distribution, and services. Its major customers are led by Toyota Systems Corporation (19.4% of net sales), primarily automotive-related manufacturers. The company also engages in Software Product Operations, Product Sales, and Cloud Services (SaaS) such as DigiQuery and the AI assistant PATHBI. Headquartered in Nagoya with branches in Tokyo and Osaka, the company is listed on the Prime Market of the Tokyo Stock Exchange and the Premier Market of the Nagoya Stock Exchange. It operates as a group including one consolidated subsidiary (Soel Corporation).
Business Model
The core of earnings is on-site development under quasi-mandate/dispatch arrangements within Software Development Operations (net sales of ¥16,603 million), where a stock business built on repeat orders from existing customers forms a stable foundation. In SI Service Operations (¥10,890 million), the company is advancing toward prime vendor status (receiving orders directly from end users) through lump-sum contract-based orders, aiming to improve profit margins. Through PRM (Project Risk Management) activities that eliminate low-profitability projects, the company has achieved continuous improvement in its operating profit margin.
Company Strengths
Software Development Operations, driven mainly by resident development under quasi-mandate and dispatch arrangements, achieved ¥16,603 million, up 16.5% year on year. The company has secured stable recurring orders (stock business) from existing customers, and the order backlog at fiscal year-end increased sharply to ¥6,710 million (up 81.1% year on year), providing high visibility into future revenue.
Through thorough implementation of PRM (Project Risk Management) activities, the company has reduced loss-making and low-profitability projects. Operating profit for FY2026 (ending March 2026) reached ¥3,470 million, up 15.7% year on year, with an operating margin of 11.9%, achieving profit growth that exceeded the revenue growth rate (up 12.1%). ROE remained at a high level of 20.6% (versus 19.6% in the prior fiscal year).
As an independent company not affiliated with any specific computer manufacturer, and holding ISO9001 certification (obtained in 2002) and ISMS certification (obtained in 2004), the company supports a diverse range of platforms from mainframes to the cloud. It possesses specialized technical capabilities in areas such as FA control, WMS/WCS, and POS systems, and has a technical foundation capable of handling processes consistently from upstream to downstream regardless of customers' industries or business types.
ENVALITH's Perspective
Performance Trend
Consolidated results for FY2026 (ending March 2026) showed revenue of ¥29,083 million (up 12.1% year on year), operating profit of ¥3,470 million (up 15.7%), ordinary profit of ¥3,551 million (up 15.8%), and profit attributable to owners of parent of ¥2,610 million (up 18.9%), achieving revenue and profit growth for the fifth consecutive fiscal year. Revenue growth accelerated from 11.1% in the previous period to 12.1%. Profit growth also accelerated significantly, from 10.8% in the previous period to 15.7%, reflecting the emerging effects of the shift toward high-profitability projects and PRM (partner relationship management) activities. As an external factor, steady modernization demand centered on the manufacturing industry and robust demand for DX and AX investment drove performance. For FY2027 (ending March 2027), the company forecasts revenue of ¥32,276 million (up 10.9%) and operating profit of ¥3,850 million (up 10.9%), and expects growth to continue.
Growth Strategy
Aiming for ¥100,000 million in revenue through prime vendor positioning, DX/AX business expansion, and new customer acquisition
While securing stable repeat orders from existing customers, the company maintains high growth backed by an order backlog of ¥3,642 million (up 117.4% year on year). In FY2026 (ending March 2026), it achieved ¥16,603 million, up 16.5% year on year, driving revenue as the core business.
Through thorough project risk management via PRM (Project Risk Management) activities and a shift to high-profitability projects, the operating margin improved from 11.5% in FY2025 (ended March 2025) to 11.9% in FY2026 (ending March 2026). The company plans to continue pursuing margin improvement in FY2027 (ending March 2027).
In response to expanding needs for operational efficiency and productivity improvement leveraging generative AI and Agentic AI, the company is capturing demand for DX and AX (AI Transformation) promotion and legacy system renewal. Orders received for SI Service Operations remained solid at ¥11,904 million (up 19.3% year on year).
With the aim of reducing dependence on Toyota Systems (19.4%), the company is promoting new customer development in the Kanto and Kansai regions. Orders received for Product Sales reached ¥922 million (up 95.3% year on year), including the acquisition of a large-scale IT equipment sales project, as the company works to expand its customer base.
With prime vendor positioning, DX/AX business expansion, and new customer acquisition as its pillars, the company has set a long-term target of ¥100,000 million (¥100.0 billion) in revenue. FY2026 (ending March 2026) revenue of ¥29,083 million represents approximately 29% of the target, requiring continued medium- to long-term growth.
Last updated: July 19, 2026