TDSE Inc.

Business Details

For companies aiming at data-driven management, the company operates a three-business structure comprising Consulting Services, which provides an end-to-end offering from DX/AI assessment through data analysis, AI system implementation, and training; Product Services, which sells the company's own AI product "KAIZODE" as well as overseas AI products (Quid Monitor, Cognigy, Dify, etc.); and the AI Agent Service, newly established in FY2025. More than 80% of employees are data scientists or engineers, forming a specialist organization.

Recent Overview

Achieved higher revenue and profit in FY2026 (ending March 2026); a significant profit decline is forecast for the following fiscal year due to expanded strategic investment

In FY2026 (ending March 2026), the company achieved net sales of ¥3,005 million (up 11.4% year on year), operating profit of ¥214 million (up 7.8%), and net income of ¥174 million (up 27.8%), recording higher revenue and profit. While Product Services and the AI Agent Service expanded steadily, the operating margin declined to 7.1% (from 7.4% in the prior period) due to increased personnel expenses associated with strengthening consulting and launching the AI Agent division. As the first year of the new medium-term management plan "SHIFT2028," FY2027 (ending March 2027) is expected to see a significant increase in strategic investment in the generative AI and agent domain, with operating profit forecast to decline sharply to ¥130 million (down 39.3% year on year).

Key Products

Growth Drivers

• Expanding consulting demand driven by companies' continued strong appetite for DX and generative AI investment
• Strengthening the revenue base through enhanced sales of QUID products within Product Services and increased added value of the proprietary product KAIZODE
• Market expansion for generative AI solutions centered on Dify and Cognigy within the AI Agent business
• Transformation under the new medium-term management plan SHIFT2028 in growth axis (from conventional AI to generative AI), revenue structure (from flow-type to stock-type), and execution structure (from decentralized to consolidated/integrated)
• Strengthened account management and alliance partner relationships through the newly established sales and technology divisions

Risks

• Operating profit for FY2027 (ending March 2027) is expected to decline sharply by 39.3% year on year to ¥130 million due to a substantial expansion of strategic investment under SHIFT2028
• Risk of declining profit margin due to increased personnel expenses associated with strengthening consulting and launching the AI Agent division
• Customer concentration risk among top revenue customers (Recruit and Fast Retailing accounted for a combined 43.6% of sales in the prior period)
• Risk of increased technology response costs and intensifying competition amid rapid advances in AI technology
• Risk of difficulty in recruiting and securing data scientists and engineers
• Risk of customers curbing IT investment due to deterioration of the international economic environment stemming from US trade policy and geopolitical risk