Blue innovation Co., Ltd.
5597・Growth Market・Information & Communication
Business
Blue Innovation Co., Ltd. is a single-segment company that provides social infrastructure inspection, disaster prevention, and education solutions utilizing drones and AGVs, centered on its proprietary software platform "Blue Earth Platform® (BEP)". The company is composed of four solutions: Inspection Solutions (55% of sales), Port Solutions (24%), Education Solutions (19%), and Next Solutions (2%), and has a cumulative customer base of over 700 corporate clients including electric power companies, petrochemical companies, municipalities, and government agencies. The company has built up a track record of social implementation in the social infrastructure domain, including joint development of a transmission line inspection system with the TEPCO group and actual operation of tsunami evacuation public announcement drone systems in Sendai City and Ichinomiya Town, Chiba Prefecture. The company listed on the Tokyo Stock Exchange Growth Market in December 2023.
Business Model
Customers are acquired through a phased process: implementation consulting → proof of concept (PoC) → solution development → trial deployment → full-scale deployment → outsourced operation. The revenue structure combines lump-sum hardware (drones and AGVs) sales (flow-type) with leasing, monthly software subscription fees, and maintenance (stock-type). In FY2025 actual results, the stock-type revenue ratio remained at only 22.0% (¥231 million), highlighting an over-reliance on flow-type revenue as a challenge. Increasing the stock-type revenue ratio through standardized packaging is key to improving profitability.
Company Strengths
The company possesses multi-sensor positioning technology (sensor fusion algorithms) combining multiple sensors for non-GPS environments where general drones struggle to fly, such as indoors or under bridges. It has a strong technical track record in specialized environments, including the practical implementation of multiple units of the "BEP Line" transmission line inspection system, jointly developed with the Tokyo Electric Power Company group, within TEPCO's service area.
Since 2016, the company has been developing drone ports together with the Ministry of Land, Infrastructure, Transport and Tourism, successfully leading the issuance of ISO5491, the international standard for drone ports for logistics drones weighing 150kg or less, in June 2023. It serves as an ISO TC20/SC16 and SC17 expert and as convenor (chair) of the vertiport working draft, leading the formation of de jure standards in the industry.
The company has been involved since JUIDA's establishment in 2014, and has been entrusted with management operations covering 25,238 members, 187 certified schools, and 33,531 issued pilot skill certifications. It has built a system connected to a nationwide network of over 100,000 pilots, enabling simultaneous operations across multiple locations. Education Solutions functions as the talent supply base for Inspection Solutions and disaster prevention solutions.
ENVALITH's Perspective
Performance Trend
Revenue declined for three consecutive periods, from ¥1,265 million in FY2023 to ¥1,223 million in FY2024 to ¥1,051 million in FY2025, but turned to growth in cumulative 1Q of the fiscal year ending December 2026, reaching ¥420 million (up 22.6% year on year from ¥343 million in the same quarter of the prior year). The main driver was a sharp increase in Inspection Solutions (up 96.3% year on year), reflecting a rise in adoption cases in the public infrastructure sector, centered on sewerage inspection. On the other hand, operating loss expanded slightly to ¥72 million from ¥70 million in the same quarter of the prior year, due to a decline in gross margin from a higher proportion of hardware sales and continued upfront investment in R&D and recruiting expenses, among others. The full-year forecast remains unchanged, with revenue of ¥1,600 million (up 52.2% year on year) and an operating loss of ¥380 million. As an external factor, demand is being supported by the continued focus of national and local governments on sewerage inspection policy and the ongoing allocation of security-related budgets.
Growth Strategy
Promoting a structural shift from a flow-based, individually customized model to a standardized package and stock-based revenue model
In the public infrastructure inspection field, including sewage systems and bridges, the company is accumulating implementation cases against a backdrop of national and municipal government priority survey policies. In 1Q cumulative FY2026 (ending March 2026), sales of Inspection Solutions surged 96.3% year-on-year for the same quarter, with both aircraft sales and operational support services driving growth on two fronts.
The company aims to build a stable revenue base by increasing the proportion of continuous usage across BEP software licenses, hardware leasing, maintenance services, and operational services. In 1Q cumulative FY2026 (ending March 2026), the stock-based sales ratio declined to 19.8% (versus 27.0% in the same quarter of the previous year), reflecting a rise in the flow-based ratio due to expanding implementation cases in the social implementation phase, which remains a challenge.
The company is advancing future commercialization and operational model development through PoC (proof of concept) trials and system integration projects with government agencies and private companies. In 1Q cumulative FY2026 (ending March 2026), this business surged 260.7% year-on-year for the same quarter, with progress in expansion into security, disaster prevention, and new industrial fields.
Due to an increase in implementation cases in the public infrastructure sector, centered on sewage inspection, the cumulative number of client companies reached 773 as of the end of 1Q FY2026 (ending March 2026), an increase of 73 companies from the end of the previous fiscal year. The increase in the number of client companies serves as a foundation for the future accumulation of stock-based revenue.
Last updated: July 17, 2026