IPS HOLDINGS CO.,LTD.
4335・Standard Market・Information & Communication
ERP Implementation-Related Business (Single Segment)
Specialized IT consulting business for mid-sized companies, centered on SAP ERP implementation support and maintenance
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (cumulative Q3) | ¥2,788 million | ¥2,679 million (same period prior year) | ↑ |
| Operating profit (cumulative Q3) | ¥306 million | ¥255 million (same period prior year) | ↑ |
| Ordinary profit (cumulative Q3) | ¥306 million | ¥253 million (same period prior year) | ↑ |
| Quarterly net income attributable to owners of parent (cumulative Q3) | ¥185 million | ¥173 million (same period prior year) | ↑ |
| Operating margin (cumulative Q3) | 11.0% | 9.5% (same period prior year) | ↑ |
| ERP Implementation Business revenue (cumulative Q3) | ¥2,116 million | up 4.0% year on year | ↑ |
| Maintenance & Other Business revenue (cumulative Q3) | ¥672 million | up 4.4% year on year | ↑ |
| Quarterly net income per share (cumulative Q3) | ¥81.20 | ¥76.21 (same period prior year) | ↑ |
| Total assets | ¥3,051 million | ¥2,912 million (end of prior fiscal year) | ↑ |
| Equity ratio | 57.6% | 56.5% (end of prior fiscal year) | ↑ |
| Revenue (full-year forecast) | ¥3,800 million | ¥3,733 million (actual, prior fiscal year) | ↑ |
| Operating profit (full-year forecast) | ¥364 million | ¥363 million (actual, prior fiscal year) | — |
Business Details
The IPS Holdings Group is a single-segment company whose principal business is SAP ERP package software implementation support and maintenance operations. Its target customers are mid-tier and quasi-major companies with annual revenues of ¥10 billion to ¥200 billion. The company is certified as a "Platinum Partner," the top-tier partner status of SAP Japan, and its strength lies in low-cost, rapid implementation using its proprietary EasyOne Template. It has also built an alliance network (UnitedVARs) with SAP vendors across approximately 70 countries globally. The company is deepening its business beyond mere ERP system implementation into becoming a consulting partner.
Recent Overview
Both revenue and operating profit for the cumulative first nine months increased year on year, with a significant improvement in margin
For the cumulative first nine months of the consolidated fiscal year ending June 2026 (July 2025 to March 2026), the company achieved revenue of ¥2,788 million (up 4.1% year on year) and operating profit of ¥306 million (up 20.1% year on year). Efficiency gains from a review of project plans and improvement in revenue-to-profit margin contributed to an improved operating margin of 11.0% (versus 9.5% in the same period of the prior year). IPS Corporation was newly added to the scope of consolidation (trade name changed effective July 1, 2025). There has been no change to the full-year earnings forecast (revenue of ¥3,800 million, operating profit of ¥364 million), and as of the end of the cumulative third quarter, the company had achieved 73.4% of the full-year revenue forecast.
Key Products
Growth Drivers
- Continued expansion of cloud ERP demand among mid-sized and growth companies driven by DX promotion and sustainability management
- Rising demand for DX infrastructure technology across the industry due to the evolution of AI technology, including generative AI
- Operating margin improved by 1.5 percentage points year on year (9.5% to 11.0%) through efficiency gains from project plan reviews
- Capturing public cloud demand through enhanced support for SAP S/4HANA Cloud Public Edition
- Deepening the business into a consulting partner role through the promotion of mid-career hiring of professionals experienced in system conceptualization and execution planning support
- Service expansion through development in the Smart Factory Support Service and cybersecurity domains
- Strengthening of the business foundation through the consolidation of IPS Corporation as a subsidiary
Risks
- The operating margin of 11.0% (cumulative Q3) remains below the management target range (15-20%), making profitability improvement an ongoing challenge
- Revenue dependence on specific customers (Nihon Dempa Kogyo Co., Ltd. accounts for 15.9% of revenue)
- Risk of order losses in the event of defects or delays in the development process (potential recognition of provision for loss on order received)
- Constraints on recruitment costs and delivery capacity due to a chronic shortage of IT personnel
- Costs of keeping pace with changes in the development environment associated with the shift to public cloud (increase in R&D expenses)
- Risk of curtailed IT investment by customer companies due to geopolitical risks such as US trade policy and Middle East tensions
- Risk of loss recognition associated with the capitalization or write-off of software in progress (¥296,553 thousand), including a loss on disposal of fixed assets (¥2,405 thousand) already recorded
Last updated: September 26, 2025