ULS Group, Inc.
3798・Standard Market・Information & Communication
Business
ULS Group, Inc. operates a consulting business specializing in strategic IT investment areas that support the competitive advantage of client companies, as a single segment. Under the holding company, it has three subsidiaries: ULS Consulting (formerly Ulsystems, serving the services, financial, information & communications, and manufacturing industries), Piecemeal Technology (serving local governments and other public-sector clients), and Arkway (IT Architecture Consulting). The group provides high-value-added services such as Digital & IT Strategy Planning Support, Business & Systems Transformation Support, Project Management Support, Agile Development, and AI-Driven Development, and has achieved record-high revenue for nine consecutive fiscal periods since its founding in 2000.
Business Model
The company recruits and develops consultants, providing integrated support from IT strategy planning through execution for clients' DX and AX investment projects. Revenue consists of quasi-delegation contracts based on time and man-hours, and contract-based agreements (contract-based sales of ¥2,806 million in FY2026 (ending March 2026), up 26.1% year on year). Through quality control leveraging its proprietary knowledge base "ULBOK" and thorough management of unit prices and utilization rates, the company maintains a gross profit margin of 39.8%.
Company Strengths
In FY2026 (ending March 2026), revenue reached ¥16,600 million (up 25.7% year on year), operating profit ¥3,046 million (up 16.1%), ordinary profit ¥3,063 million (up 16.1%), and net income attributable to owners of parent ¥2,027 million (up 23.9%), all renewing record highs. The track record of 9 consecutive years of record revenue and 14 consecutive years of record operating profit and ordinary profit demonstrates the sustainable competitiveness of the business model.
In FY2026 (ending March 2026), orders received totaled ¥18,135 million (up 27.3% year on year), and the order backlog stood at ¥6,759 million (up 29.4%). The order backlog has reached approximately 40% of revenue, forming a structure that secures a certain level of future revenue in advance for the following period. Continued robust demand from existing clients and a steady increase in new clients are underpinning the buildup of orders.
As of the end of FY2026 (March 2026), the number of consultants stood at 713 (up 103 from the previous fiscal year-end), with total group employees numbering 820. The company maintains high financial soundness, with zero interest-bearing debt, cash and deposits of ¥8,460 million, and net assets of ¥12,566 million. Under a policy of maintaining a substantial equity base, the company preserves the financial flexibility to respond agilely to M&A and growth investment opportunities.
ENVALITH's Perspective
Performance Trend
Revenue expanded 2.25x over five periods, from ¥7,367 million in FY2022 (ended March 2022) to ¥16,600 million in FY2026 (ending March 2026). Growth rates in the most recent two periods remained high, at 27.2% in FY2025 (ended March 2025) and 25.7% in FY2026 (ending March 2026). Meanwhile, operating margin declined from 19.9% in FY2025 to 18.4% in FY2026 due to increased recruitment and personnel expenses. In terms of the external environment, robust ongoing demand for DX and AI utilization, together with strong corporate earnings and continued wage increases against the backdrop of the Bank of Japan's rate hike (to 0.75% in December 2025), continue to underpin demand. For FY2027 (ending March 2027), the company forecasts revenue of ¥20,200 million (up 21.7% year on year) and operating profit of ¥3,700 million (up 21.4% year on year).
Growth Strategy
Continued large-scale investment in human capital combined with expansion of AI-driven development, aiming to build an organization of 1,500 to 2,000 personnel
The company plans mid-career hiring of approximately 120 to 140 people annually in FY2027 (ending March 2027). It is promoting HR system reforms toward industry-leading compensation and treatment systems to accelerate the acquisition of talented engineers and consultants. As of the end of FY2026 (ending March 2026), the number of consultants stood at 713 (an increase of 103 from the previous fiscal year-end), expanding steadily.
Since FY2026 (ending March 2026), new services such as AI-driven development have been positioned as a key priority in business strategy. Sales from contract-based work reached ¥2,806 million (up 26.1% year on year). The company aims to increase added value and unit prices through the growth of AI-driven development projects, while strengthening its capabilities to support companies promoting AX (AI Transformation).
The company is actively strengthening its management layer and administrative departments, building an internal control organization capable of supporting business expansion. It aims to improve brand recognition through more active branding activities (increased advertising expenses). With external partnerships also under consideration, the company is developing a management foundation that enables higher-level business activities across the group as a whole.
The company is promoting the development of "dual-skilled" talent proficient in both business and cutting-edge IT technology through comprehensive education systems and hands-on practice. It continues to maintain the organizational knowledge base "ULBOK" across the entire organization, sustaining and strengthening a high-quality service delivery system that does not depend on individuals, thereby aiming to increase per-client unit prices and maintain a competitive advantage.
Last updated: July 19, 2026