GRID Inc.
5582・Growth Market・Information & Communication
Business
Grid Inc. upholds the corporate philosophy of "INFRASTRUCTURE＋LIFE＋INNOVATION" and provides AI planning optimization services specialized in three social infrastructure fields: electricity/energy, logistics/supply chain, and urban transportation/smart cities. Centered on its proprietary Algorithm MIX, which combines machine learning, reinforcement learning, and mathematical optimization, together with ReNom APPS equipped with digital twin technology, the company offers integrated services ranging from consulting to AI engine development, system implementation, and operational support. Its major customers are large enterprises supporting social infrastructure, including major electric power companies such as Hokkaido Electric Power and Shikoku Electric Power, as well as railway companies and major logistics firms. The company listed on the Tokyo Stock Exchange Growth Market in July 2023.
Business Model
The company develops and implements systems that use AI to optimize planning operations, which are core to customer operations, and subsequently receives ongoing revenue from operations and support as stock-type revenue. The stock-type revenue ratio for FY2025 (ended June 2025) was 24.7%. By providing core business systems with high switching costs, the company achieves an existing customer revenue ratio of 83.4%, and has a structure that maximizes CLTV (customer lifetime value) through upselling and cross-selling.
Company Strengths
The company has independently developed Algorithm MIX, which combines mathematical optimization, machine learning, and reinforcement learning, and ReNom APPS, equipped with digital twin technology. It has continued quantum algorithm research since 2017 and has filed multiple patents. The advanced technical requirements create a structure that prevents entry by general IT vendors.
In FY2025 (ended June 2025), the proportion of sales from existing customers was 83.4% (¥1,720 million). The number of business partners was 43 (up 26.5% year on year), and average sales per customer across the three categories of AI development, system development, and operational support was ¥54.9 million (up 10.3% year on year). The company has built a stable customer base centered on major electric power companies such as Hokkaido Electric Power and Shikoku Electric Power.
In FY2025 (ended June 2025), the operating margin was 20.8%, and operating cash flow was ¥405 million (up from ¥285 million in the previous fiscal year). Cash and cash equivalents stood at ¥3,197 million, and with liabilities of ¥477 million against net assets of ¥3,940 million, financial soundness is high. The company also has ample liquidity headroom, with a total of ¥900 million in overdraft facilities across three banks remaining unused.
ENVALITH's Perspective
Performance Trend
Revenue trended as follows: FY2023 ¥1,354 million → FY2024 ¥1,652 million → FY2025 ¥2,063 million → FY2026 cumulative Q3 ¥1,951 million, continuing four consecutive years of revenue growth. On the other hand, the operating margin has shown a clear declining trend, from 22.2% in FY2024 → 20.7% in FY2025 → 15.9% in cumulative Q3 of FY2026, primarily due to increased personnel expenses (cost of sales ¥656 million, SG&A ¥378 million) associated with aggressive hiring in the engineering and sales management departments. As an external tailwind, the increase in power demand driven by the construction of new and expanded data centers and semiconductor plants amid the spread of generative AI (a projected increase of 56.8 billion kWh by FY2035) is supporting revenue growth. Progress against the full-year forecast (revenue of ¥3,100 million, operating profit of ¥450 million) is generally on track, but adjusting the pace of hiring will be key to restoring margins.
Growth Strategy
Expansion of three business fields—power, urban/transportation, and energy management—together with an increase in the stock-type revenue ratio
Continuously promoting additional orders and full-scale implementation development from power companies with large budget scales. In the cumulative nine months of FY2026 (ending March 2026), power field sales reached ¥1,041 million (up 14.5% year on year), establishing the field as a core business accounting for over 50% of total sales.
Sales in the urban/transportation field grew sharply, driven mainly by railway company projects. In the cumulative nine months of FY2026 (ending March 2026), sales reached ¥351 million (up 164.1% year on year), growing into a second pillar accounting for approximately 20% of total sales. Expansion is being driven by both flow-type (¥257 million) and stock-type (¥93 million) revenue.
Centered on support for power grid connection applications, cumulative nine-month sales in FY2026 (ending March 2026) reached ¥160 million (versus none in the same period of the previous fiscal year), completing the launch of this new field. Development projects are expected to commence in the fourth quarter, making this a key field for achieving the full-year forecast.
Revenue stability is improving through the accumulation of operation and support contracts (stock-type). Stock-type revenue is expanding across all fields: power field ¥172 million (up 36.0% year on year), manufacturing/transportation field ¥234 million (up 20.1% year on year), and urban/transportation field ¥93 million (up 83.8% year on year).
Continuing to hire talented engineers, the company achieved 89 engineers (up 25.4% year on year) and 44 sales/administrative staff (up 33.3% year on year) as of the end of the third quarter of FY2026 (ending March 2026). The organization is being built out while accepting increased personnel costs as an upfront investment for business expansion.
Last updated: July 17, 2026