Eltes Co., Ltd.
3967・Growth Market・Information & Communication
Digital Risk Business
Eltes' core business. A high-profitability segment centered on SNS and internal fraud countermeasures.
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Q1 cumulative, FY2027 ending March 2027) | ¥688 million | ¥687 million (Q1 cumulative, FY2026 ending March 2026) | — |
| Segment profit (Q1 cumulative, FY2027 ending March 2027) | ¥215 million | ¥265 million (Q1 cumulative, FY2026 ending March 2026) | ↓ |
| Segment profit margin (Q1 cumulative, FY2027 ending March 2027) | approx. 31.3% | approx. 38.5% (Q1 cumulative, FY2026 ending March 2026) | ↓ |
| Revenue (full year, FY2026 ending March 2026) | ¥2,745 million | ¥2,514 million (FY2025 ending March 2025) | ↑ |
| Segment profit (full year, FY2026 ending March 2026) | ¥992 million | ¥921 million (FY2025 ending March 2025) | ↑ |
Business Details
Composed of two pillars: the Social Risk Intelligence Service (SR Business), which addresses risks arising from SNS and social media, and the Internal Risk Intelligence Service (IRI Business), which analyzes internal log data to detect internal threats such as trade secret leakage. Main customers are enterprise companies such as major manufacturers and financial institutions. Positioned as the group's core business, it boasts a high operating margin. The company is also making early-stage investments in the AI Governance field as a new business.
Recent Overview
Segment profit declined 18.8% year-on-year due to early-stage investment in AI Governance and the completion of certain contracts.
In the first quarter of FY2027 (ending March 2027) (March to May 2026), the Digital Security segment recorded revenue of ¥688 million (down 0.2% year-on-year) and segment profit of ¥215 million (down 18.8% year-on-year). Both the SR Business and the IRI Business saw certain ongoing contracts reach the end of their terms, while early-stage investment (development and staffing) in the AI Governance field weighed on profit. On the other hand, inquiries have been steadily increasing following the announcement of a new service to the media in April 2026, and contribution to results is expected from the second quarter onward.
Key Products
Growth Drivers
- Increasing demand for internal fraud countermeasures against a backdrop of an expanding job-change market, the spread of telework, and heightened economic security risks
- Expanding adoption of the Internal Risk Intelligence Service among enterprise companies, centered on major manufacturers and financial institutions
- Creation of new demand for AI Governance measures amid the spread of generative AI (new service announced in April 2026, with inquiries increasing)
- Continued expansion of demand for social risk countermeasures driven by the rise of new SNS platforms among younger generations and the increasing sophistication of false/misleading information and deepfake fraud
- Concentration of management resources on the group's core business, promoting rebranding as a security stock
Risks
- Downward pressure on service unit prices due to intensifying competition with competitors (domestic and overseas security vendors)
- Risk of service obsolescence due to the rapid evolution of generative AI and new technologies
- Decline in segment profit margin if early-stage investment in new areas such as AI Governance becomes prolonged
- Risk of revenue decline due to the expiration of ongoing contracts in the SR Business and IRI Business
- Risk of demand slowdown due to reduced information security investment by client companies
- Risk of data leakage and security incidents inherent to services handling personal and confidential information
Last updated: May 27, 2026