ID Holdings Corporation
4709・Prime Market・Information & Communication
Business
ID Holdings Corporation is a domestic information services company founded in 1969, operating under a holding company structure with 9 consolidated subsidiaries and 2 equity-method affiliates. Centered on five service areas—System Management, Application Development, IT Infrastructure, Cybersecurity, and Consulting & Education—the company provides services directly to customers across a wide range of industries, including finance, public sector, manufacturing, and energy. Direct contracts with end users account for more than 60% of revenue, enabling the company to build long-term, continuous customer relationships. In addition to its domestic bases, the company maintains global bases in China, Singapore, the United States, Europe, and Thailand (equity-method affiliate), and has established an offshore/nearshore development system. For FY2026 (ending March 2026), revenue was ¥39,371 million and operating profit was ¥4,129 million, both marking record highs.
Business Model
Direct contracts with end users account for more than 60% of sales, and the company has built a stable revenue base by providing consistent services over the long term, spanning IT system operation and management through to development and security. While stabilizing earnings with System Management (net sales of ¥15,509 million) as the bedrock segment, the company is shifting toward high-value-added services by focusing on Cybersecurity, IT Infrastructure, and Consulting as priority areas, achieving an improvement in gross profit margin (23.9% → 25.7%).
Company Strengths
Direct contracts with end users across multiple industries such as finance, public sector, and manufacturing account for more than 60% of sales, with long-term continuous business relationships established. Sales dependency on any single customer is diversified below 10%, resulting in low specific-customer risk. This customer base, built up through years of track record, constitutes a unique competitive advantage that is difficult for competitors to replicate in a short period.
From FY2022 (ending March 2022) to FY2026 (ending March 2026), net sales expanded from ¥27,806 million to ¥39,371 million, and operating profit grew from ¥1,869 million to ¥4,129 million, marking five consecutive years of increased revenue and profit and renewed record highs. Price optimization in Application Development (gross profit margin rising from 20.2% to 27.0%) and a decrease in goodwill amortization (from ¥383 million to ¥201 million) contributed to the profit improvement.
Sales in the Cybersecurity business surged 43.0% year on year to ¥3,143 million, significantly exceeding the initial target of the medium-term management plan. In addition, the company obtained ISO56001, the international standard for innovation management systems, becoming the 12th company globally and the 6th company domestically to do so, enhancing external recognition of its technological capabilities. The company invested ¥211 million in R&D expenses, continuing advanced technology development including AI agent research and completion of a PoC for ID-VROP.
ENVALITH's Perspective
Performance Trend
Revenue increased 41.6% over four years, from ¥27,806 million in FY2022 (ended March 2022) to ¥39,371 million in FY2026 (ending March 2026). The growth rate has remained stable at around 8-12% each period, with no clear trend of acceleration or deceleration. The operating margin has continuously improved, from 6.7% in FY2022 (ended March 2022) to 10.5% in FY2026 (ending March 2026). Key performance drivers include steady expansion in IT investment demand accompanying digitalization across society as a whole, and rising appetite for security investment amid intensifying cyberattacks (a tailwind for the industry as a whole). In addition, price optimization in Application Development, a decrease in goodwill amortization, and tax credits under the wage increase promotion tax system supported the improvement in profit.
Growth Strategy
Aiming for net sales of ¥44.0 billion and an operating margin of 13% in FY2028 (ending March 2028) through a shift to a high-profitability model and human capital investment
Expand business scale by positioning IT Infrastructure, Cybersecurity, and Consulting as focus areas, while concentrating System Management and Application Development, positioned as core areas, on high-profitability projects. Promote a shift of 225 engineers (three-year target) from core areas to focus areas to strengthen the talent portfolio.
Implement ¥6.0 billion in human capital investment over three years, deploying measures such as online learning through Udemy Business and the introduction of a mentoring system to develop employees and enhance engagement. The aim is to develop professional talent and foster a culture of autonomous thinking.
Complete a PoC (proof of concept) in customer environments for the Virtual Operations Center (ID-VROP) and work toward full-scale commercialization in the following fiscal year. Also participate in a consortium involving more than 40 companies, aiming to promote the adoption of next-generation system operations.
Actively pursue M&A and capital and business alliances with companies that offer high synergy with focus areas. Emphasizing three perspectives—securing talent, acquiring technology licenses, and developing customers—the company made Broadband Security Corporation an equity-method affiliate in January 2025 and Innova Software Co., Ltd. of Thailand an equity-method affiliate in September 2025.
In addition to existing use of offshore resources, develop local IT support for Japanese companies expanding overseas as a new revenue source. Leverage existing bases in China, Singapore, the United States, Europe, and Thailand to promote the recruitment and development of global talent.
Last updated: July 19, 2026