Startline CO.,LTD.

Business Details

The core business is a package-type support service addressing private companies' statutory obligation to employ people with disabilities. The company operates multiple service lineups, including a roastery-type service (BYSN), an indoor farm-type service (IBUKI), and a satellite office-type service (INCLU), providing seamless support from hiring through retention and vocational skill development. The majority of revenue consists of recurring (stock-type) income, with the Disability Employment Support Services Business accounting for 99.3% of revenue (¥5,561 million out of ¥5,599 million) in FY2026 (ending March 2026). The company listed on the TSE Growth Market in December 2025 and is accelerating new store openings using the proceeds raised.

Recent Overview

FY2026 (ending March 2026) revenue up 25.2% and operating profit up 71.3%, exceeding plan; net income up 200.8% due to deferred tax asset recognition

For the full year of FY2026 (ending March 2026), the company achieved revenue of ¥5,599 million (up 25.2% year-on-year), operating profit of ¥450 million (up 71.3% year-on-year), and net income of ¥433 million (up 200.8% year-on-year). Although opening-related expenses associated with new store openings exceeded plan, profit exceeded the plan due to reduced recruitment costs from improved hiring unit costs and reduced running costs at each location. Net income significantly exceeded the plan after the company carefully examined the recoverability of deferred tax assets, resulting in a ¥209 million gain recorded as an adjustment to corporate income taxes. Using ¥698 million in proceeds from the share issuance associated with the TSE Growth Market listing in December 2025, the company invested ¥1,422 million in the acquisition of tangible fixed assets. The company pursued aggressive business expansion, including the opening of a new multi-purpose hub, 'Diverse Village.' For FY2027 (ending March 2027), the company forecasts revenue of ¥7,009 million and operating profit of ¥560 million.

Key Products

Growth Drivers

• The statutory employment quota for private companies was raised to 2.5% in April 2024, and a further increase to 2.7% has already been decided for July 2026, with demand continuing to expand from companies that have not yet met the statutory quota (54.0%, a majority, as of 2025)
• Both the number of employed people with disabilities and the actual employment rate reached record highs (704,610 people and an actual employment rate of 2.41% in 2025), and the structural expansion of the disability employment support market continues
• In addition to achieving the 'quantity' aspect of the statutory employment quota, social demand is growing for improving the 'quality' of disability employment (vocational skill development and retention support), expanding demand for higher-value-added services
• Stable revenue accumulation through the recurring revenue models of BYSN, IBUKI, and INCLU, along with increased customer unit prices through upselling and cross-selling to existing customers
• Accelerated new store openings and expansion of new services such as the new multi-purpose hub 'Diverse Village,' utilizing funds raised (¥698 million in new share issuance) from the TSE Growth Market listing in December 2025
• Improved profit margins accompanying revenue growth (operating profit margin improved from 5.9% to 8.0%), achieved through reduced recruitment costs from improved hiring unit costs and reduced running costs at each location

Risks

• IBUKI's profitability has declined due to rising electricity costs and initial opening expenses, and new store openings have been suspended for the time being, limiting its contribution as a growth driver
• Launching new services (such as TASKI COFFEE and Diverse Village) is taking time, creating a risk that new services will fall short of the revenue plan
• Financial leverage is high due to increased capital expenditure and borrowings associated with new store openings (total liabilities of ¥6,336 million, long-term borrowings of ¥3,026 million), creating risks of rising interest rates and potential breaches of financial covenants
• Although the equity ratio improved to 22.9% following the listing, the company is expected to continue relying heavily on borrowings due to ongoing aggressive investment in new store openings
• Changes to the statutory employment quota system or its operation, or tightened administrative regulation of the disability employment business, could affect the business environment
• Securing and training support staff and other personnel could constrain business expansion (accelerated store openings are generating upfront hiring costs)
• There is revenue dependence on a single customer, Mizuho Lease (¥757 million in FY2026 (ending March 2026), approximately 13.5% of total revenue), creating a risk that a reduction in transactions with this customer could affect performance