Tera Technology, Inc.
483A・Standard Market・Information & Communication
Tera Technology, Inc.
483A・Standard Market・Information & Communication
Systems Development Business (Single Segment)
A single-business company engaged in contracted systems development across five sectors: public sector, telecommunications, information services, and others
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (full year) | ¥4,749 million | ¥4,387 million | ↑ |
| Operating profit (full year) | ¥555 million | ¥506 million | ↑ |
| Ordinary profit (full year) | ¥565 million | ¥520 million | ↑ |
| Profit attributable to owners of parent (full year) | ¥412 million | ¥374 million | ↑ |
| Operating margin | 11.7% | 11.6% | ↑ |
| Equity ratio | 76.4% | 73.1% | ↑ |
| Return on equity (ROE) | 15.9% | 16.4% | ↓ |
| Return on assets (ROA, based on ordinary profit) | 16.2% | 16.6% | ↓ |
| Earnings per share (EPS) | ¥253.24 | ¥229.85 | ↑ |
| Book value per share (BPS) | ¥1,689.23 | ¥1,504.99 | ↑ |
| Cash and cash equivalents at period-end | ¥1,910 million | ¥1,705 million | ↑ |
| Annual dividend per share | ¥89.00 | ¥69.00 | ↑ |
| Dividend payout ratio | 35.1% | 30.0% | ↑ |
Business Details
The systems development business operated by the Tera Technology Inc. group. The company undertakes contracted development across five sectors—public sector, telecommunications, information services, financial, and manufacturing and others—through transactions via major IT vendors/SIers as well as direct contracts with end clients. It provides integrated services from requirements definition through design, development, testing, and maintenance. Transactions via major IT vendors/SIers account for approximately 70% of business, and the company is characterized by stable project operations supported by continuous transaction cycles and a high ratio of in-house (proper) engineers. The company newly listed on the Tokyo Stock Exchange Standard Market on December 23, 2025.
Recent Overview
In FY2026 (ending March 2026), revenue and all profit items increased, driven by the telecommunications and manufacturing sectors, and the dividend was also increased
In FY2026 (ending March 2026, full year), the company achieved revenue of ¥4,749 million (up 8.2% year on year), operating profit of ¥555 million (up 9.6%), and net profit of ¥412 million (up 10.2%), with growth in revenue and all profit items. By sector, telecommunications showed the largest growth at up 32.0% year on year (¥706 million), while information services (¥1,720 million, up 8.5%) and manufacturing and other (¥1,061 million, up 8.2%) also performed steadily. On the other hand, the public sector declined 3.1% due to a transitional gap period for large-scale projects. The year-end dividend was raised from the initially planned ¥81.00 to ¥89.00, bringing the annual dividend to ¥89.00 (payout ratio of 35.1%). For FY2027 (ending March 2027), the company forecasts revenue of ¥4,976 million (up 4.8%) and operating profit of ¥577 million (up 3.9%). Listing-related expenses of ¥16 million (non-operating expenses) were recorded as a one-time item during the period.
Key Products
Growth Drivers
- Expanding client DX investment demand: Ongoing demand for cloud migration of existing systems, IT infrastructure modernization, and new system construction continues to drive orders in the information services, manufacturing, and financial sectors
- Expansion of direct transactions with telecom carriers: Amid progress in in-house development driven by DX promotion, a shift from transactions via major IT vendors to direct transactions with telecom carriers has advanced, resulting in telecommunications sector revenue growth of 32.0% year on year
- A stable base of repeat orders supported by continuous transaction cycles (development → operation/maintenance → next-phase development)
- Room for improvement in gross margin as the ratio of direct contracts with end clients increases
- Expanded order-taking capacity through workforce growth, based on targets to increase development department headcount every period
- Enhanced brand recognition and credibility, as well as strengthened recruiting and client acquisition capabilities, following listing on the Tokyo Stock Exchange Standard Market (December 2025)
Risks
- Risk of revenue contraction due to the transitional gap period for large-scale public sector projects (down 3.1% year on year in FY2026 (ending March 2026) as well; a forecast recovery of 2.8% growth in FY2027 (ending March 2027) remains uncertain)
- Risk of intensifying recruitment competition and rising personnel costs due to tight supply-demand conditions for IT engineers (selling, general and administrative expenses increased 13.9% year on year)
- Risk of revenue concentration among major clients such as Fujitsu and TIS
- Risk of client IT investment restraint due to the impact of U.S. trade policy or fluctuations in financial and capital markets
- Risk of order-taking capacity constraints if increasing the outsourcing ratio becomes difficult, or risk of margin deterioration if the outsourcing ratio rises
- The information services sector forecast for FY2027 (ending March 2027) projects a 9.3% year-on-year decline (¥1,560 million), requiring offsetting growth in other sectors
Last updated: June 22, 2026