BIPROGY Inc.

Business Details

A segment providing contracted software development, SE Services, Consulting, and related services. It supports DX promotion for customer companies across a wide range of industries, centered on the five focus areas of Financial, Retail, Energy, Mobility, and OT Infrastructure. In FY2026 (ending March 2026), revenue was ¥140,845 million, making it the largest segment, accounting for approximately 32% of the group total.

Recent Overview

Both revenue and profit increased significantly, with margin also improving

In the System Services segment for FY2026 (ending March 2026), revenue was ¥140,845 million (up 8.0% year on year) and segment profit was ¥51,127 million (up 14.2% year on year), achieving both revenue and profit growth. The segment profit margin improved by 2.0 percentage points to 36.3% from 34.3% in the prior period. This was driven by continued IT investment demand from companies centered on the DX domain and expanded order intake in focus areas such as Financial, Retail, and Energy.

Key Products

Growth Drivers

• Continued rise in corporate IT investment appetite centered on the DX domain (the BOJ Tankan March survey projects a year-on-year increase in software investment)
• Expansion of order intake in the five focus areas of Financial, Retail, Energy, Mobility, and OT Infrastructure
• Acquisition of new projects through expanded use of generative AI (Azure OpenAI Service, etc.) and improved development productivity through "AI-driven development"
• Strengthening of consulting capabilities through Cambridge Technology Partners and others, and expansion of upstream DX support
• Steady expansion of ICT/DX business in major ASEAN countries and collaboration with North American startups through the CVC fund

Risks

• Increase in selling, general and administrative expenses due to rising personnel costs and strengthened investment for future business expansion
• Downside economic risk from the impact of U.S. trade policy, and the effect of Middle East conditions and financial/capital market volatility on corporate IT investment appetite
• Project execution risk from intensifying competition to secure IT talent and a shortage of engineers
• Increasing intensity of competition in the information services industry, including entry by companies from other industries
• Profit margin volatility risk from the completion of development on large-scale projects and changes in project mix