TOKAI SOFT CO.,LTD.
4430・Standard Market・Information & Communication
Business
Tokai Soft Co., Ltd. is an independent software development company established in 1970. It provides contract software development and services across three business segments: the Embedded Systems-related Business (automotive ECUs, consumer/industrial equipment), the Manufacturing, Distribution and Business Systems-related Business, and the Financial and Public Sector-related Business. Its main clients include domestic automakers and parts manufacturers, manufacturing and logistics companies, and financial institutions and government agencies reached through major SIers. In December 2024, the company made AJ Flat Co., Ltd. a subsidiary, adding General Clerical Staffing Services to its operations. The company is listed on the Tokyo Stock Exchange Standard Market and the Nagoya Stock Exchange Premier Market.
Business Model
The company receives software development projects from clients on a contracted or staffing basis, and carries out development by combining in-house engineers with numerous partner companies (outsourcing partners). Against net sales of ¥10,680 million, production output on a manufacturing cost basis was ¥8,116 million. While building up total order backlog of ¥2,035 million, the structure secures stable earnings through continued transactions with regular clients, while capturing DX-related projects through new client development. Against an operating margin target of 10.0%, the company achieved 10.5% in FY2025 (ended May 2025).
Company Strengths
In FY2025 (ended May 2025), the operating margin reached 10.5%, exceeding the internal target of 10.0%. ROE also achieved 13.4% against a target of 10.0%. The company recorded net sales of ¥10,680 million, operating profit of ¥1,120 million, and net income attributable to owners of parent of ¥813 million, maintaining high profitability amid an environment of active DX investment across all business fields.
The business is diversified across three segments: Embedded-related (net sales of ¥3,470 million), Manufacturing/Distribution and Business Systems (¥5,273 million), and Finance/Public Sector (¥1,865 million). The company serves a wide range of industries as customers, including automotive, manufacturing, logistics, finance, and government agencies, mitigating the risk of economic fluctuations in any specific industry. Total order backlog of ¥2,035 million enhances visibility into next-period sales.
The company has obtained ISO9001 (QMS), ISO27001 (ISMS), and the Privacy Mark (P Mark), enabling it to meet the quality and security requirements of large-scale projects for major SIers and clients in the finance and public sectors. According to the company's annual securities report, this positions the company to receive stable and continuous orders in its finance- and public-sector-related businesses.
ENVALITH's Perspective
Performance Trend
Revenue expanded 68% over five fiscal years, from ¥7,304 million in FY2022 (ending March 2022) to ¥12,285 million in FY2026 (ending March 2026). High growth continued particularly in FY2025 (ending March 2025) (+22.2%) and FY2026 (ending March 2026) (+15.0%). Operating margin improved steadily from 9.2% in FY2022 (ending March 2022) to 11.2% in FY2026 (ending March 2026), and ROE reached 14.9%. External factors such as robust corporate IT investment, expanding demand for manufacturing DX, and progress in SDV adoption provided tailwinds. In FY2026 (ending March 2026), it should be noted that the recording of ¥41 million in prior-year corporate taxes, etc. pushed up the effective tax rate, causing net profit growth (+17.6%) to lag behind operating profit growth (+22.9%). The FY2027 (ending March 2027) forecast anticipates a 1.5% decline in operating profit due to prioritization of growth investment.
Growth Strategy
Pursuing mid-to-long-term growth along three axes: human capital investment, strengthening of DX solutions, and utilization of M&A
In response to the progress of SDV transformation in the automotive industry, the company is advancing the upskilling and multi-skilling of engineers, centered on electrification (EV) and advanced safety (ADAS) technologies. It is also pursuing efficiency improvements in the development process through AI utilization, aiming to expand order intake in growth areas. The embedded-related business is beginning to show results, with revenue up +20.2% year on year in FY2026 (ending March 2026).
The company is strengthening its utilization of the "PlusFORCE" DX support solution in the MES, WMS, and SCM domains, as well as the provision of MES-related solutions through collaboration with Business Engineering Corporation. The manufacturing, distribution, and business systems-related business achieved high growth in FY2026 (ending March 2026), with revenue up +18.5% year on year, and the company will continue to concentrate and strengthen its development structure.
The company is promoting the expansion of new graduate and experienced-hire recruitment, reskilling of developers premised on generative AI utilization, and the shift of personnel toward growth areas. In its forecast for FY2027 (ending May 2027), it has explicitly stated that it will prioritize growth investment in human resources, R&D, and business infrastructure, with a policy of expanding its human resource base even at the expense of short-term profit.
Starting with the full consolidation of AJ Flat Co., Ltd. as a wholly owned subsidiary in December 2024, the company continues to promote personnel acquisition and business domain expansion through M&A. AJ Flat got off to a solid start in its first full fiscal year of consolidation, FY2026 (ending March 2026), with revenue of ¥113 million, up +54.1% year on year. Going forward, the company plans to further expand its growth foundation through additional M&A execution and strengthened collaboration with partner companies.
Last updated: July 17, 2026