ITFOR Inc.

Business Details

Provides an integrated offering from system equipment sales, software and system infrastructure design and development, through to installation and setup. Main customers are financial institutions such as regional banks and credit unions, and local governments. Centered on proprietary packages such as the personal loan business support system "SCOPE," the segment has also captured projects related to standardization of local government information systems in the public sector, making it the core business accounting for 59.2% of consolidated net sales (FY2026, ending March 2026).

Recent Overview

Orders received surged 137.3% year on year, driven by local government standardization projects and financial-sector demand

In FY2026 (ending March 2026), net sales were ¥13,671 million (118.6% year on year) and segment profit was ¥1,956 million (115.0% year on year), representing substantial growth in both revenue and profit. The main driver was steady growth in projects related to standardization of local government information systems in the public sector. Software development, infrastructure renewal, and SCOPE for financial institutions also progressed steadily as planned. Orders received surged to ¥15,065 million (137.3% year on year), and the order backlog also increased to ¥7,389 million (123.2% year on year). In addition, I.T.FOR made ICELL Co., Ltd. (DX support and security solutions) and its two subsidiaries consolidated subsidiaries effective October 1, 2025, expanding its business domain. Goodwill of ¥108 million (amortized equally over 5 years) was recorded.

Key Products

Growth Drivers

• Continued increase in orders for local government information system standardization projects in the public sector (orders received up 137.3% year on year in FY2026, ending March 2026)
• Continued expansion of orders for personal loan business support systems (SCOPE and WELCOME) for financial institutions (accelerating horizontal expansion to card companies, leasing companies, and guarantee companies affiliated with regional banks)
• Business expansion into DX support and security solutions through the consolidation of ICELL Co., Ltd. and its subsidiaries
• Expansion of sales of the iRITSpay Payment Terminal (tailwind from national cashless-payment policy)
• Enhancement of added value and competitiveness of existing core systems through AI implementation
• Creation of new revenue opportunities through next-generation products (Agent Hub, Pay Collect, etc.)
• Expansion of the business portfolio toward the final year of the medium-term management plan in FY2027 (ending March 2027) (net sales target of ¥28,000 million)

Risks

• Risk of fluctuation in net sales due to variability in order timing for specific customers/projects, such as department store systems and electric power company communication systems
• Risk of continued weakness in the CTI systems, communications systems, and payment systems fields
• Rising SG&A expenses and margin pressure from expanded investment in recruitment/training costs and increased office relocation expenses (segment profit margin declined to 14.3% from 14.8% in the prior period)
• Impairment risk related to goodwill (¥108 million, amortized equally over 5 years) arising from the consolidation of ICELL
• Risk of rising procurement costs due to soaring outsourcing/processing costs, material prices, and yen depreciation
• Medium- to long-term risk of a shrinking customer base due to ongoing consolidation and reduction in the number of regional banks
• Risk of a rebound decline in public-sector sales once local government information system standardization projects have run their course