TDC SOFT Inc.
4687・Prime Market・Information & Communication
Business
TDC Soft Inc. is an independent system integrator founded in 1963, offering integrated system development services ranging from consultation to development, operation, and management. The company's business consists of a single segment, System Development, which encompasses four business areas: IT Consulting & Services, Financial IT Solutions, Public Sector IT Solutions, and Platform Solutions. Its major clients span financial institutions (banks and insurers), the distribution, manufacturing, and service industries, and government agencies and educational institutions, with a track record of transactions with major companies including the NTT DATA Group. The company is listed on the Prime Market of the Tokyo Stock Exchange, and operates as a group including two consolidated subsidiaries.
Business Model
The company provides integrated services for clients' IT needs, ranging from upstream consulting and system planning to design, development, maintenance, and operations management. It also sells and provides its own products (cloud-based workflow "Styleflow," procurement management "BP-LINKS," etc.). Revenue is centered on order-based contracting and quasi-delegation contracts, and a certain degree of revenue visibility is secured, as indicated by an order backlog of ¥11,996 million (up 5.0% year on year). Personnel expenses and outsourcing costs are the main costs, and cash flow from operating activities serves as the primary source of funds.
Company Strengths
Revenue grew for 5 consecutive fiscal years, from ¥30,925 million in FY2022 (ending March 2022) to ¥48,359 million in FY2026 (ending March 2026). Operating income also expanded from ¥2,967 million to ¥5,159 million over the same period. Return on equity improved from 14.3% to 17.5%, while the equity ratio remained at a high level of 74.4%, maintaining strong financial soundness.
Revenue composition is diversified across Financial IT Solutions at 42.5% (¥20,571 million), Public Sector IT Solutions at 26.6% (¥12,841 million), IT Consulting & Services at 18.3% (¥8,849 million), and Platform Solutions at 12.6% (¥6,096 million). While curbing excessive dependence on any single industry, the company achieved year-on-year revenue growth across all segments.
The company has obtained ISO9001 (company-wide), ISO27001 (information security), Privacy Mark, and CMMI Maturity Level 4 (Solutions Division) certifications. Its development track record of over 60 years, having been certified as a systems integrator by the Minister of International Trade and Industry in 1988, together with its quality management framework, underpins its order base with major financial institutions, government agencies, and other clients.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), revenue reached ¥48,359 million (+8.9% year on year), operating profit ¥5,159 million (+8.1%), ordinary profit ¥5,359 million (+9.9%), and profit attributable to owners of parent ¥3,880 million (+13.0%), achieving increased revenue and profit across all metrics and exceeding the plan. All four business segments posted revenue growth, led in particular by Platform Solutions (+15.3%) and IT Consulting & Services (+13.8%). External tailwinds included continued corporate DX investment, progress in the shift to cloud, and rising demand for generative AI utilization. The effect of SG&A expense reductions also contributed, and the operating profit margin was maintained at 10.7%. ROE improved by 0.1 percentage point year on year to 17.5%. The revenue CAGR over the past five fiscal periods was approximately 11.8%, while the operating profit CAGR was approximately 14.8%, reflecting a continuing qualitative improvement in which profit growth outpaces revenue growth.
Growth Strategy
Under the new mid-term management plan "Be a Visionary System Integrator," the company is advancing three pillars: acquisition of advanced technologies, human capital investment, and M&A.
Proactively acquiring cutting-edge elemental technologies such as AI/data engineering, network/security, and UXD ahead of the curve to enhance responsiveness to increasingly complex customer challenges. Actively invested funds, including ¥1,409 million in acquisition of investment securities and ¥2,098 million in acquisition of securities. Also began M&A activity through acquisition of shares in affiliated companies (¥30 million).
Strengthening high-value-added proposals that effectively leverage IT, based on deep understanding of the characteristics of elemental technologies and customer strategies. SaaS solutions, ERP solutions, and cloud infrastructure construction projects progressed steadily, with results becoming visible in IT Consulting & Services (+13.8%) and Platform Solutions (+15.3%).
Promoting enhanced education initiatives and strategic career hiring to acquire personnel with advanced technical expertise in areas such as AI and networking. In parallel, working to build an environment where diverse personnel can work with motivation. Increases in personnel-related costs are among the factors contributing to the rise in accrued expenses (+¥479 million).
Forecasting net sales of ¥53,000 million (+9.6%), operating profit of ¥5,600 million (+8.5%), ordinary profit of ¥5,800 million (+8.2%), and profit attributable to owners of parent of ¥3,915 million (+0.9%). For the cumulative second quarter, net sales of ¥25,100 million and operating profit of ¥2,860 million have been set as interim targets.
Last updated: July 19, 2026