DAIWA COMPUTER CO., LTD.
3816・Standard Market・Information & Communication
Business
Daiwa Computer Co., Ltd. is an independent IT services company founded in 1977 (listed on the TSE Standard market). Its core "Software Development Related Business" provides Contracted Software Development, maintenance, and CMMI Consultation primarily in the manufacturing, distribution, and service sectors, accounting for approximately 75% of net sales. The "Service Integration Business" offers ASP Service (SaaS-type Software Service) and NFC-based Marketing Service. In addition, through subsidiaries, the company operates in Agriculture Related Business (Smart Agriculture / i-Agriculture®) and System Sales, building a unique IT-x-agriculture business portfolio. Its main business partners are SCSK Corporation and Otsuka Corporation, and consolidated net sales for FY2025 (ending July 2025) were ¥3,204 million.
Business Model
The core of revenue is contracted development and maintenance projects from client companies (Software Development Related Business: net sales of ¥2,397 million), with continued transactions with SCSK Corporation (31.1% of sales) and Otsuka Corporation (20.0% of sales) underpinning stable earnings. In addition, recurring revenue from SaaS-type services (net sales of ¥580 million) enhances the quality of earnings. Through cost reductions from lower outsourcing expenses and greater efficiency in SG&A expenses, operating income was secured at ¥571 million, up 1.2% year on year, even as net sales declined 2.6% year on year.
Company Strengths
Under CMMI, the software development process model originating from Carnegie Mellon University in the United States, the company achieved Maturity Level 5 (the highest level) in V2.0 in 2019 and again in V3.0 in May 2024. This industry-leading development process quality has been certified by a third-party organization, underpinning the company's competitiveness in winning high-value-added projects.
As of the end of July 2025, cash and cash equivalents stood at ¥3,750 million against interest-bearing debt of only ¥44 million. The equity ratio reached 86.0% (up from 83.3% in the previous period), maintaining a level above 80% for five consecutive periods. The interest coverage ratio reached 2,300.6 times, indicating extremely low financial risk.
In FY2025 (ended July 2025), net sales declined 2.6% year on year to ¥3,204 million, but through cost reductions from lower outsourcing expenses and more efficient SG&A expenses (down 2.7% year on year), the company achieved operating profit of ¥571 million (up 1.2% year on year) and profit attributable to owners of parent of ¥417 million (up 22.0% year on year). This reflects a management stance that prioritizes profitability.
ENVALITH's Perspective
Performance Trend
Revenue grew for four consecutive fiscal years, from ¥2,611 million in FY2021 to ¥3,291 million in FY2024, but declined slightly to ¥3,205 million in FY2025. The full-year forecast for FY2026 (ending March 2026) is flat at ¥3,205 million (0.0% year-on-year). On the profit side, operating profit reached a record high of ¥572 million in FY2025, but the full-year forecast for FY2026 (ending March 2026) shows a sharp drop to ¥252 million (down 55.8% year-on-year). Cumulative cost of sales through the third quarter surged 14.0% year-on-year, causing the gross margin to fall from 33.5% to 23.9%. The main cause is strategic investment based on DCX2030 (an increase in the proportion of support-type projects, workforce expansion, and higher outsourcing costs), which the company describes as being
Growth Strategy
Promoting transformation in the second founding period through AI, cloud, and human capital investment centered on DCX2030
Centered on Contracted Software Development, the company aims to accumulate support-type projects to secure future large-scale contracted projects. It is advancing project manager staffing increases and productivity improvements through AI utilization. Cumulative sales for the third quarter were ¥1,810 million (up 1.2% year-on-year), showing steady progress, but operating profit declined significantly to ¥179 million (down 49.2% year-on-year) due to a rising proportion of support-type projects.
In the Service Integration Business, the company is advancing functional improvements to SaaS-type services, strengthening server and other infrastructure, and increasing marketing investment. It aims to acquire new customers through the NFC-based Marketing Service and actively introduce AI functions into its proprietary services. Cumulative sales for the third quarter increased to ¥441 million (up 3.6% year-on-year), but operating profit declined significantly to ¥24 million (down 74.4% year-on-year) due to costs associated with strengthening the organizational structure.
Within the Others segment, the company is advancing service enhancement in the smart agriculture field. Cumulative sales for the third quarter were ¥135 million (down 26.3% year-on-year), with an operating loss of ¥34 million, as the upfront investment phase continues. The company is proceeding in parallel with the continuation of agriculture-related production and sales activities and the capture of System Sales demand.
Last updated: July 17, 2026