DAIWA COMPUTER CO., LTD.
3816・Standard Market・Information & Communication
Software Development Related Business
Daiwa Computer's core segment. Centered on contracted development, providing high-quality systems to the manufacturing, distribution, and service sectors.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (FY2026 (ending March 2026)... cumulative Q3) | ¥1,809 million | ¥1,788 million (same period previous year) | ↑ |
| Segment operating profit (cumulative Q3, fiscal year ending July 2026) | ¥179 million | ¥354 million (same period previous year) | ↓ |
| Segment operating margin (cumulative Q3, fiscal year ending July 2026) | approx. 9.9% | approx. 19.8% (same period previous year) | ↓ |
Business Details
In addition to contracted development work undertaken from customers, the company provides system/software design, development, implementation, and maintenance services, and also engages in software development process improvement and CMMI Consultation. Major customers are SCSK Corporation and Otsuka Corporation, which together account for approximately 75% of overall group sales, making this the core segment. It captures IT investment demand across a wide range of industries, centered on the manufacturing, distribution, and service sectors.
Recent Overview
Orders remained steady with sales up 1.2% year on year, but operating profit fell sharply by 49.2% due to a rising proportion of support-type projects.
In the cumulative nine months of Q3 of the fiscal year ending July 2026 (August 2025 to April 2026), orders remained steady and sales reached ¥1,809 million (up 1.2% year on year). On the other hand, as in the previous fiscal year, the high proportion of support-type projects—undertaken in anticipation of future contracted development projects—compressed gross profit, resulting in a sharp decline in operating profit to ¥179 million (down 49.2% year on year). The cost increase associated with the execution of the strategic investment plan under the medium-term management plan "DCX2030" is pushing down profit. There is no change to the full-year earnings forecast, and the company explains that results remain within the plan's range.
Key Products
Growth Drivers
- Steady IT investment appetite among companies across a wide range of industries (demand driven by DX promotion, work-style reform, labor shortage response, and digitalization)
- Higher value-added work resulting from a shift in demand toward support-type projects that require advanced technical capabilities
- Strengthening of project manager staffing and productivity improvement through AI utilization based on the medium-term management plan "DCX2030"
- Deepening of existing transactions with SCSK Corporation and Otsuka Corporation, and strengthened order-taking activities in new fields and for large-scale projects
- Laying the groundwork for future acquisition of contracted development projects through the accumulation of support-type projects
Risks
- Risk of sales concentration in two major customers (SCSK Corporation and Otsuka Corporation), which together account for approximately 51% of composition
- Decline in gross profit margin and sharp decrease in operating profit (down 49.2% year on year) due to the persistently high proportion of support-type projects
- Continued cost increases associated with executing the strategic investment plan under the medium-term management plan "DCX2030"
- Difficulty securing and developing IT talent (intensifying competition to recruit engineers, with strengthening mid-career hiring as a challenge)
- Risk that the conversion from support-type projects to contracted development projects does not proceed as expected
Last updated: October 29, 2025