ENVALITH
デジタル・インフォメーション・テクノロジー株式会社 logo

Digital Information Technologies Corporation

3916・Prime Market・Information & Communication

Official website
デジタル・インフォメーション・テクノロジー株式会社 logo
Digital Information Technologies Corporation3916

Business

Digital Information Technology Corporation (DIT) is an independent information services company founded in 1982. The Group consists of six consolidated subsidiaries and operates in four business areas: Business Solutions, which provides Business System Development & Operations Support for a wide range of industries including finance, pharmaceuticals, telecommunications, manufacturing, and public sector; Embedded Solutions, which conducts embedded system development and verification for automotive, IoT, and mobile applications; Product Solutions, which develops cybersecurity products such as WebARGUS and business efficiency tools such as xoBlos; and System Sales, which sells the core business system "Rakuichi" for small and medium-sized enterprises. The company is listed on the Prime Market of the Tokyo Stock Exchange. Net sales for FY2025 (ended June 2025) were ¥24,159 million.

Business Model

In Software Development, which accounts for approximately 97% of revenue, contract development, maintenance, and operations support for major corporations and SI vendors form the pillar of stable earnings. In addition, the company offers proprietary products such as WebARGUS (cybersecurity) and xoBlos (business efficiency improvement) on a subscription basis, aiming to establish a high-profit model that does not depend on the number of engineers. The company also secures cost competitiveness through advanced near-shore development leveraging regional bases (Matsuyama, Sendai, Hakodate, and Hokuto). It also actively utilizes M&A to expand its business domains.

Company Strengths

In FY2025 (ended June 2025), the company achieved net sales of ¥24,159 million (up 21.5% year on year), operating profit of ¥3,013 million (up 24.3%), and net income of ¥2,178 million (up 29.1%), marking 15 consecutive periods of increased revenue and profit. Compared with FY2021 (ended June 2021), net sales have expanded approximately 1.7-fold and operating profit approximately 1.8-fold, demonstrating sustained growth capability.

As of the end of FY2025 (ended June 2025), the equity ratio stood at 71.6%, and operating cash flow was ¥2,394 million, both at high levels. Interest-bearing debt is extremely low, with the ratio of cash flow to interest-bearing debt at 0.0 years. The company also maintains a ¥4.0 billion unsecured, unguaranteed revolving credit facility agreement with MUFG Bank as agent, securing financial flexibility.

The company's operations span multiple areas of IT demand, including Business System Development & Operations Support, embedded development, embedded verification, cybersecurity, operational efficiency tools, and core systems for small and medium-sized enterprises. This structure diversifies dependence on any specific customer or field, while allowing the company to broadly benefit from expanding DX investment (Bank of Japan Tankan FY2025 plan: up 12.4% year on year).

ENVALITH's Perspective

For the cumulative nine months of FY2026 (ending June 2026), the company secured revenue growth to ¥19,270 million (+6.2% YoY), but major profit indicators all declined YoY: operating profit of ¥2,446 million (-2.9%), ordinary profit of ¥2,479 million (-1.8%), and net profit attributable to owners of the parent of ¥1,636 million (-2.0%). This was driven by a combination of factors: deterioration in revenue mix due to the attrition of high-unit-price public sector and automotive-related projects, additional SI development response costs in the Product Solutions business, and an increase in SG&A expenses (from ¥2,177 million in the same period last year to ¥2,385 million this period) associated with growth investments for AI and strategic product development. Achieving the full-year forecast (operating profit of ¥3,050 million) requires approximately ¥604 million in operating profit in Q4 alone, and the progress rate of 80.2% warrants close monitoring.

The company has not revised the full-year consolidated earnings forecast announced on August 8, 2025 (revenue of ¥26,000 million, operating profit of ¥3,050 million, net profit of ¥2,200 million). As for the external environment, software investment plans for FY2026 according to the Bank of Japan Tankan survey (March 2026 survey) show a solid increase of 3.4% YoY, and demand conditions for the information services industry as a whole continue to provide a tailwind. On the other hand, increased investment caution in the automotive-related field, driven by U.S. trade developments and Middle East conditions, has manifested its impact in Q3 of the Embedded System Development & Verification Services business, and the pace of recovery in Q4 will be key to achieving the full-year target.

The FY2030 (ending June 2030) target of ¥50,000 million in revenue is equivalent to approximately 2.1 times the FY2025 (ending June 2025) actual result of ¥24,159 million, making achievement through organic growth alone difficult. The medium-term management plan (FY2024–FY2026) is positioned as the phase for "realizing a growth trajectory," premised on accelerating M&A and new business investment. Goodwill balance stands at ¥524 million (amortization ongoing from ¥647 million at the end of the previous fiscal year), a currently manageable level, but the increase in goodwill recognition and expanding amortization burden accompanying future M&A expansion is a point that warrants continued attention regarding its impact on profit margins.

Growth Strategy

Aiming for ¥50,000 million in revenue by FY2030 through three pillars: M&A, proprietary product expansion, and utilization of regional offices

Promoting the use of multiple AI tools tailored to customer needs in project development and establishing guidelines. Confirmed the effectiveness of AI utilization through test process automation, gained customer recognition, and began sales activities as a new service. The R&D department monitors advanced technology trends and has built a system to support business divisions.

WebARGUS license revenue from existing customers is steadily increasing. xoBlos is making steady progress in capturing leads generated from exhibitions. Sentinel ARGUS is seeing increased inquiries driven by demand for ransomware countermeasures. RezOT is in preparation for market launch with industrial sector partners. xFormly was released in February 2026, with full-scale sales starting in April.

Projects, including SI development, are increasing more than expected, primarily in the residential construction industry, and the company is strengthening its operational structure. Capturing the digitalization needs of small and medium-sized enterprises driven by demand related to the Electronic Bookkeeping Act and the Invoice System. Resource constraints have partially arisen due to increased demand, and staffing and organizational development remain challenges.

M&A effects have contributed to results, including the impact of the Jungle Inc. acquisition (corporate package sales) and the settling-in of business-succession sales offices from the second half of the previous fiscal year (System Sales segment profit up 94.4% year on year). The company plans to continue growth investments, including new businesses and M&A, toward achieving its 2030 vision.

The sales structure of the business-succession sales offices from the second half of the previous fiscal year steadily took hold during the current fiscal year. By capturing PC replacement demand driven by the shift to Windows 11, System Sales achieved significant growth, with revenue of ¥764 million (up 18.7% year on year) and segment profit of ¥118 million (up 94.4% year on year).

Last updated: July 17, 2026