baudroie,inc.

Business Details

Specializing in the IT infrastructure domain including cloud, network, security, load balancer, wireless, and SDN, the company provides consistent services from consulting to design, construction, operation, and maintenance. Its customers span a wide range of industries including operating companies, financial institutions, government agencies, and telecommunications carriers, with a key strategy of deepening relationships with enterprise customers. The company has a dual revenue structure comprising flow-type (one-off project) and stock-type (monthly maintenance and operation) revenues, with the continuity of stock-type revenue forming a stable earnings base.

Recent Overview

In Q1 FY2027 (ending March 2027), revenue grew 60.8% year-on-year and operating profit grew 39.4%, continuing high growth

In Q1 FY2027 (ending March 2027) (March to May 2026), revenue was ¥5,407 million (up 60.8% year-on-year), operating profit was ¥846 million (up 39.4% year-on-year), and quarterly profit attributable to owners of parent was ¥588 million (up 34.5% year-on-year). Continued robust demand for corporate IT and DX investment, along with deepening and expanding relationships with enterprise customers, contributed to this performance. On the other hand, selling, general and administrative expenses increased to ¥880 million (up 56.7% year-on-year), and the operating margin declined to 15.6% from 18.1% in the same period of the prior year. As a subsequent event, on June 30, 2026, the 7th series of stock acquisition rights (839,400 shares, exercise price ¥2,394 per share) was allotted to 301 employees and officers/employees of subsidiaries, with the exercise condition being EBITDA exceeding ¥7,451 million (in FY2029 (ending March 2029) or FY2030 (ending March 2030)). The full-year earnings forecast remains unchanged at revenue of ¥23,500 million (up 34.9% year-on-year) and operating profit of ¥4,409 million (up 30.0% year-on-year).

Key Products

Growth Drivers

• Expansion of deal size through deepening relationships with and acquiring new enterprise customers (companies included in the Nikkei 225/400/500 or with revenue of ¥500 million or more)
• Growing demand for advanced technology fields such as cloud, security, SDN, and load balancers (robust corporate DX and IT investment)
• Expansion of human resource and business foundations through M&A (four companies newly consolidated in FY2026 (ending March 2026))
• Expansion of a stable earnings base through the continuous accumulation of stock-type revenue (monthly maintenance and operation)
• Strengthening of supply capacity and maintaining price competitiveness through early-stage development programs for young engineers (development-oriented matching and in-house training)

Risks

• Risk of delays in post-M&A PMI (integration process) or failure to achieve synergies (four companies were acquired at once in FY2026 (ending March 2026), resulting in recorded goodwill of ¥4,936 million)
• Risk of rising personnel expenses and increased recruitment costs due to intensifying competition for engineer recruitment and labor shortages (selling, general and administrative expenses increased 56.7% year-on-year)
• Risk of revenue concentration in specific customers (SoftBank Corp. accounted for 10.9% of revenue in the previous fiscal year)
• Risk of IT and DX investment being sensitive to economic conditions (restraint on corporate investment due to geopolitical risks such as US trade policy and Middle East affairs)
• Risk of technological obsolescence due to accelerating innovation in advanced technology fields, and increased costs of maintaining engineer skills
• Risk of future dilution from stock acquisition rights (839,400 shares) (exercise condition is EBITDA exceeding ¥7,451 million, exercise period from June 2029 to June 2036)