ENVALITH
株式会社アイル logo

I'LL INC.

3854・Prime Market・Information & Communication

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株式会社アイル logo
I'LL INC.3854

Business

I'LL INC. was founded in 1991 and is listed on the Prime Market of the Tokyo Stock Exchange as an IT solutions company for small and medium-sized enterprises. The company operates two businesses: the Systems Solutions business (FY2025 sales of ¥16,989 million), centered on its core enterprise resource planning package, the "Aladdin Office Series"; and the Web Solutions business (FY2025 sales of ¥2,306 million), which provides "CROSS MALL," a cloud service for unified management of multiple online stores, among other offerings. The company's basic policy is its proprietary "CROSS-OVER" strategy, which combines proposals for "real" (core systems) and "Web" (e-commerce services) while enhancing industry-specific variations for sectors such as steel materials, screws, fashion, food, and medical devices. With locations in Osaka, Tokyo, Nagoya, Fukuoka, and Sendai, the company's customer base consists of small and medium-sized enterprises nationwide.

Business Model

The company combines initial revenue from the implementation and customization of its core business package "Aladdin Office" for client companies with stock-type recurring revenue from post-implementation monthly maintenance fees and cloud service usage fees (CROSS MALL and CROSS POINT). Its integrated sales-and-development structure, which places sales staff and systems engineers within the same organization, improves project accuracy and profit margins. Through its CROSS-OVER strategy of proposing combined "real" and "web" product lineups, the company achieves competitive differentiation and higher customer unit prices, resulting in an operating profit margin of 25.0% on sales for FY2025.

Company Strengths

Revenue expanded from ¥13,204 million and operating profit of ¥1,830 million in FY2021 to revenue of ¥19,295 million and operating profit of ¥4,819 million in FY2025. The operating margin reached 25.0%, steadily improving toward the company's 30% target. Strengthened project management under the integrated manufacturing-and-sales system and reduced after-sales support man-hours have contributed to improved profitability.

At the end of FY2025, total assets stood at ¥15,769 million against total net assets of ¥11,287 million, resulting in a high equity ratio of 71.6%. The company held cash and cash equivalents of ¥7,402 million (up ¥739 million year on year), and maintains a debt-free management approach, funding working capital and capital expenditures principally from its own funds in principle. Operating cash flow was ¥3,366 million, reflecting robust cash generation capability.

The Aladdin Office Series offers industry-specific variations for sectors such as steel, screws, fashion, food, and medical devices, with development, sales, and support personnel organized into projects by industry. By accumulating extensive industry-specific implementation cases and leveraging collaboration with partner companies, order intake in FY2025 grew steadily to ¥19,323 million (up 9.5% year on year).

ENVALITH's Perspective

Cumulative net sales for the first three quarters of FY2026 (ending July 2026) of ¥15,543 million reached 75.1% of the full-year forecast of ¥20,700 million, while operating profit of ¥4,241 million reached 77.1% of the full-year forecast of ¥5,500 million. Based on past seasonality, the remaining amount required to be achieved in Q4 alone is ¥5,157 million in net sales and ¥1,259 million in operating profit. Compared with the actual Q4 results of the previous fiscal year (net sales of ¥5,197 million and operating profit of ¥1,354 million), there is a possibility that the full-year forecast remains at a conservative level. Continued attention should be paid to whether the earnings forecast will be revised.

Cost of sales for the cumulative first three quarters increased by only 5.0% year on year to ¥6,639 million, significantly below the 10.2% growth rate in net sales, resulting in an improvement in gross profit margin to 57.3% (versus 55.1% in the same period of the previous year). On the other hand, selling, general and administrative expenses increased by 8.2% year on year to ¥4,664 million, continuing to reflect rising personnel expenses and expanding R&D expenses (cumulative ¥122 million, up 87.7% year on year). As an external factor, intensifying competition for talent acquisition in the market environment is heightening upward pressure on personnel expenses, and the results of productivity improvement measures will be key to further improving profit margins.

In terms of market environment, the expansion of domestic DX investment demand is spreading to the company's core customer base of mid-sized and small-to-medium enterprises, providing an external tailwind that supports the steady trend in order performance. On the other hand, hardware delivery delays due to the semiconductor shortage continued to occur in the current quarter, with net sales of hardware equipment and other items decreasing by 14.3% year on year to ¥1,812 million. The shift toward the mid-to-large enterprise market tests the company's capability to respond to individually optimized solution needs, and the allocation of development resources and profitability management will be key focal points going forward.

Growth Strategy

Building a highly profitable business structure through deepening the CROSS-OVER strategy, AI utilization, and a shift toward mid-sized and large enterprises

Continued strengthening of the integrated development-and-sales system, in which sales and SE personnel are placed within the same organization. The company aims to achieve structural improvement in profit margins by reducing after-sales support man-hours through improved estimation accuracy, strengthened project management, and enhanced delivery quality. The company achieved an operating margin of 27.3% on a cumulative basis for the third quarter, demonstrating that the effects are now reflected in the numbers.

The company is expanding its stable revenue base through raising monthly usage fees for CROSS MALL, strengthening its approach to the mid-sized and large enterprise market, continuing to acquire new customers by expanding the target industries for CROSS POINT, and accumulating maintenance contracts for the Aladdin Office Series. Cumulative recurring revenue for the third quarter totaled ¥6,883 million, up 12.3% year on year.

The company is promoting AI-driven development support, including speeding up design and verification processes and automating document creation and code completion. It aims to respond swiftly to demands for company-specific optimized solutions accompanying the target shift toward mid-sized enterprises, while improving productivity. This initiative is currently being pursued in parallel with other efforts.

The company is transitioning its system infrastructure to a microservices architecture with the aims of shortening development periods, actively incorporating third-party technologies, strengthening integration, and ensuring scalability. Software in progress increased from ¥77 million at the end of the previous fiscal year to ¥276 million, confirming progress in development investment.

The company is strengthening R&D activities aimed at enhancing future market competitiveness, centered on its R&D facility in Matsue City, Shimane Prefecture. Cumulative R&D expenses for the third quarter expanded significantly to ¥122 million (up 87.7% from ¥65 million in the same period of the previous year), indicating the company is in an investment phase.

In September 2025, the company introduced a stock-granting ESOP trust, establishing an incentive plan to raise employees' awareness of and contribution to medium- to long-term performance improvement and enhancement of corporate value. As of the end of the third quarter, the ESOP trust account held 29,700 shares (book value of ¥87 million). This functions as a company-specific measure aimed at securing and retaining talent.

Last updated: July 17, 2026