Tsuji Hongo IT Consulting Co., Ltd.
476A・Standard Market・Information & Communication
Business
Tsuji, Hongo & Co. IT Consulting Inc., founded in 2012 and having joined the Tsuji-Hongo Group in 2013, is a single-segment company that provides end-to-end DX support across three domains: Consulting, Technology, and Operations. Its main customers are mid-sized and small-to-medium enterprises as well as accounting firms. Building on a strong network centered on Tsuji, Hongo & Co. Tax Corporation (a key customer and partner accounting for 34.0% of revenue in the 13th fiscal period) and ITOCHU Corporation (with which a strategic business alliance was concluded in March 2024), the company offers a one-stop service ranging from business process improvement consulting to optimal system implementation and BPO. With a group structure that includes two consolidated subsidiaries (such as Colony Interactive Inc.), the company is aiming for a listing on the TSE Standard Market in December 2025.
Business Model
The Consulting domain generates project-based fees, the Operations domain generates monthly BPO fees based on workload, and the Technology domain generates revenue through software sales and system implementation support in addition to SaaS subscriptions (such as "Jitsutore for Accounting Firms" and "better Souzoku"). The structure also leverages a customer referral network through referral fee payments to partner firms (professional service firms, financial institutions, etc.), aiming to maximize customer unit value through mutual collaboration across the three domains. Gross profit margin for the cumulative third quarter of the 14th fiscal year was approximately 53.9%.
Company Strengths
Tsuji Hongo Certified Public Tax Accountants' Corporation is the largest customer and partner, accounting for 34.0% (¥439 million) of net sales of ¥1,291 million in the fiscal year ended March 2024 (13th fiscal year, consolidated). In March 2024, the company concluded a strategic business alliance with Itochu Corporation, gaining access to the major trading company's customer network. Referral networks with professional service firms (such as tax and legal practices) and financial institutions form a stable base of customer touchpoints.
The three domains of Consulting, Technology, and Operations work in close coordination, providing everything from business process visualization to optimal system implementation and BPO execution within a single company. The consolidated cumulative gross profit margin for the third quarter of the 14th fiscal year remained at a high level of approximately 53.9% (net sales of ¥1,548 million, gross profit of ¥834 million), reflecting the high added value generated by this one-stop service provision in profitability.
The operating margin for the 13th fiscal year (consolidated) was 8.5%, affected by one-time costs such as advisory fees related to the acquisition of Colony Interactive shares, but improved significantly to 15.3% (operating profit of ¥236 million) for the cumulative consolidated third quarter of the 14th fiscal year. The operating margin for the interim period of the 14th fiscal year also remained at a high level of 15.0%, confirming the improvement in the profit structure through concrete figures.
ENVALITH's Perspective
Performance Trend
In H1 FY2026 (ending September 2026) (October 2025 – March 2026), net sales reached ¥1,164 million (up 14.2% YoY), maintaining a revenue growth trend. Growth was driven by an increase in security consulting orders, expanded orders from large and mid-sized enterprises through synergies with ITOCHU, and an increase in software sales volume. On the other hand, selling, general and administrative expenses rose to ¥472 million (from ¥397 million in the same period of the prior year), as IPO-related expenses and active investment in human capital weighed on profits. Operating profit fell to ¥114 million (down 25.0% YoY), ordinary profit fell to ¥118 million (down 25.3% YoY), and profit attributable to owners of parent for the interim period fell to ¥78 million (down 28.2% YoY), with each profit stage declining significantly. On the financial side, the capital increase associated with the listing strengthened the financial base, with net assets of ¥1,676 million and an equity ratio of 76.0%. The full-year forecast (net sales of ¥2,913 million, operating profit of ¥428 million) remains unchanged, premised on a profit recovery in the second half.
Growth Strategy
Accelerating growth along four axes: expanding customer touchpoints, improving profitability, strengthening security, and investing in human capital
Against the backdrop of increasingly sophisticated and complex cyberattacks, demand for risk assessments and technical/organizational security support is growing. In the interim period, an increase in security consulting orders contributed to revenue growth, and this remains a focus area going forward.
Leveraging the capital and business alliance with ITOCHU Corporation, the company is promoting upselling from its traditional customer base centered on small and medium-sized enterprises to large and mid-sized enterprises. In the interim period, an increase in orders attributable to this synergy was confirmed, contributing to higher customer unit prices and expanded sales scale.
The company is actively investing in recruitment and training using funds raised through its listing on the TSE Standard Market (December 2025). In the interim period, listing-related costs and increased personnel expenses weighed on profit, but the company explains that "steady progress was made in building the foundation for future growth."
An increase in the number of software sales contributed to revenue growth in the interim period. Through product sales and expanded subscription revenue that capture corporate digitalization demand, the company aims to reduce its reliance on project-based revenue and stabilize earnings.
Last updated: July 17, 2026