ID Holdings Corporation
4709・Prime Market・Information & Communication
Information Services
A domestic information services company operating across the full range of IT services within a single segment
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales | ¥39,371 million | ¥36,274 million | ↑ |
| Operating Income | ¥4,128 million | ¥3,780 million | ↑ |
| Ordinary Income | ¥4,212 million | ¥3,862 million | ↑ |
| Profit Attributable to Owners of Parent | ¥2,907 million | ¥2,389 million | ↑ |
| EBITDA | ¥4,518 million | ¥4,390 million | ↑ |
| Gross Margin | 25.7% | 23.9% | ↑ |
| Operating Margin | 10.5% | 10.4% | ↑ |
| Equity Ratio | 63.3% | 60.3% | ↑ |
| Return on Equity (ROE) | 20.2% | 18.7% | ↑ |
| Goodwill Amortization | ¥201 million | ¥383 million | ↓ |
| Earnings Per Share (EPS) | ¥85.93 | ¥71.27 | ↑ |
| Annual Dividend Per Share | ¥80.00 | ¥70.00 | ↑ |
| Operating Cash Flow | ¥3,060 million | ¥3,557 million | ↓ |
| Cash and Cash Equivalents at End of Period | ¥6,046 million | ¥5,432 million | ↑ |
Business Details
Provides five services: System Management, Application Development, IT Infrastructure, Cybersecurity, and Consulting & Education. Serves multi-industry customers including financial, public sector, manufacturing, and energy clients, addressing a broad range of needs from long-term, continuous operation and maintenance to high-value-added DX support and security measures. The company has consolidated subsidiaries and equity-method affiliates both domestically and overseas, and maintains global bases in China, Singapore, Europe, and the United States.
Recent Overview
Fifth consecutive year of higher sales and profit, marking a new record high; Cybersecurity expanded rapidly with sales up 43%
In FY2026 (ending March 2026), net sales reached ¥39,371 million (up 8.5% year on year), operating income was ¥4,128 million (up 9.2%), and profit attributable to owners of parent was ¥2,907 million (up 21.7%), marking the fifth consecutive year of increased sales and profit and a new record high. In Application Development, gross margin improved substantially from 20.2% to 27.0% through price optimization. Cybersecurity expanded rapidly, up 43.0%, by capturing demand from government agencies, significantly exceeding the medium-term plan target. Application of the tax credit under the wage increase promotion tax system boosted net profit. A two-for-one stock split was implemented effective April 1, 2026. For FY2027 (ending March 2027), the company plans net sales of ¥42,000 million (up 6.7%) and operating income of ¥4,500 million (up 9.0%).
Key Products
Growth Drivers
- Continued increase in IT investment driven by corporate DX promotion and expanding AI utilization demand (rollout of new services such as AI agent research, AIOps implementation support, and Dify training)
- Rising security investment appetite among both government agencies and private companies amid increasingly sophisticated cyberattacks; Cybersecurity business expanded rapidly, up 43.0% year on year
- Improved profitability in Application Development through price optimization and profit improvement at the individual business-site level (gross margin rising from 20.2% to 27.0%)
- New customer acquisition and expanded transactions through strengthened collaboration with major IT vendors (effects materializing in IT Infrastructure and Application Development)
- Resource shift toward priority areas (IT Infrastructure, Cybersecurity, and Consulting) under the medium-term management plan "Next 50 Episode III JUMP!!!" (achieved a shift of 54 out of a three-year target of 225 engineers)
- Profit boost from reduced goodwill amortization (down from ¥383 million to ¥201 million year on year)
- Improved talent development and employee engagement through human capital investment (three-year target of ¥6.0 billion, with ¥1.7 billion invested in the current fiscal year)
- Planned commercialization in the next fiscal year of the next-generation system operation service "ID-VROP" following PoC completion, and enhanced external recognition of technical capability through ISO 56001 certification (12th company worldwide, 6th domestically)
Risks
- Rise in SG&A expenses due to increased strategic investment in talent development and recruitment (from ¥4,877 million to ¥5,989 million year on year, up 22.8%)
- Expansion of equity-method investment losses (from ¥11 million to ¥72 million year on year)
- Decline in sales in Consulting & Education (down 7.6% year on year) and risk of project conclusions
- Deteriorating profitability in some services, such as the decline in IT Infrastructure gross margin (from 30.3% to 26.7%)
- Increase in working capital and decline in operating cash flow (from ¥3,557 million to ¥3,060 million year on year) associated with an increase in trade receivables (from ¥6,902 million to ¥8,323 million year on year)
- Possible suppression of IT investment due to price increases, uncertainty over U.S. trade policy, Middle East tensions, and geopolitical risks
- Increased cash outflow due to higher corporate tax payments (from ¥1,124 million to ¥1,888 million year on year)
- Stock price volatility risk associated with improved liquidity following the stock split
Last updated: May 29, 2026