ENVALITH
株式会社タナベコンサルティンググループ logo

TANABE CONSULTING GROUP CO.,LTD.

9644・Prime Market・Services

Official website
株式会社タナベコンサルティンググループ logo
TANABE CONSULTING GROUP CO.,LTD.9644

Business

Tanabe Consulting Group Co., Ltd. (TCG) is a management consulting group founded in 1957, operating under a pure holding company structure. Under the holding company, it has seven operating subsidiaries, running as a group of eight companies with approximately 900 personnel. Its primary clients are top management (executives) at large to mid-sized companies, centered on mid-tier firms, and professionals stationed in 10 major regional cities across Japan provide seamless support spanning from the formulation to the implementation and execution of management strategy across five domains: "Strategy & Domain," "Digital & DX," "HR," "Finance & M&A," and "Brand & PR." The company has a track record of consulting for over 22,100 companies and is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company's main revenue source is consulting fees earned from forming teams of professionals with deep expertise in industries, strategic issues, and regional characteristics to support client companies' management, providing seamless assistance from strategy formulation through implementation and execution via DX services. In addition, the company has a structure designed to increase customer unit price and retention (LTV) by expanding specialized areas through M&A (Surpass, Peacemind, etc.) and cross-selling among group operating companies.

Company Strengths

The consulting track record with over 22,100 companies accumulated over 68 years since founding, along with proven methods such as the "1-3-5 Growth Strategy," constitute proprietary assets that competitors find difficult to replicate in a short period. A resident presence across 10 major cities nationwide and professionals well-versed in industry and regional characteristics support the maintenance and expansion of the customer base.

Since 2019, the company has grouped a total of six companies: Leading Solution, GLOWIN Partners, J-three, Kurtz Media Works, Surpass, and Peacemind. It has built a framework capable of providing integrated support to mid-sized companies across everything from management strategy to Digital & DX Consulting, HR Consulting, Finance & M&A Consulting, and Brand & PR Consulting. The securities report explicitly states that the company has "established a unique position with relatively few competitors."

Gross profit margin improved by 3.4 percentage points, from 45.5% in FY2025 (ended March 2025) to 48.9% in FY2026 (ending March 2026). Operating profit for the same period increased +20.9% from ¥1,500 million to ¥1,814 million, and the operating profit margin also rose from 10.3% to 11.1%. An increasing proportion of high-value-added consulting services is driving the improvement in profit margins.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved all targets of its previous mid-term management plan (2021–2025), with revenue up 12.0%, operating profit up 20.9%, and ROE of 10.4%. The new mid-term management plan (2026–2030) sets targets of ROE 15% and market capitalization of ¥500 million, but the gap from the current ROE level is large, and the speed of generating results from M&A investments along with sustained margin improvement will be key to achieving these targets. The FY2027 (ending March 2027) forecast (revenue of ¥17,200 million, operating profit of ¥1,900 million) indicates continued growth in both revenue and profit, but the growth rate is expected to moderate gradually.

In FY2026 (ending March 2026), the gross profit margin improved significantly to 48.9% (up 3.4pt year on year), while selling, general and administrative expenses increased 20.3% year on year to ¥6,148 million, outpacing the rate of revenue growth (+12.0%). Amortization of goodwill related to M&A (¥164 million) and expanded human capital investment appear to be the main drivers of the cost increase, keeping the operating profit margin at 11.1% (+0.8pt). Attention should also be paid to external factors such as the risk of global geopolitical conflict and rising prices, which could affect corporate demand for management consulting services.

In FY2026 (ending March 2026), the company implemented aggressive shareholder returns, with total dividends of ¥870 million (a payout ratio of 79.6%) and share buybacks of ¥449 million. The new mid-term plan also states that aggressive shareholder returns will continue through FY2031 (ending March 2031). On the other hand, cash flow from financing activities was ¥-1,496 million, and cash and cash equivalents decreased from ¥7,665 million to ¥6,490 million. The equity ratio also declined from 74.3% to 69.6%, and the pace of consumption of financial capacity resulting from balancing M&A investment with shareholder returns needs to be monitored continuously.

Growth Strategy

Under the new medium-term plan "TCG Future Vision 2030," the company aims to achieve ROE of 15% and a market capitalization of ¥500 million

With targets of ROE of 15% and market capitalization of ¥500 million, the company will continue aggressive M&A investment and shareholder returns (interim/year-end dividends, agile share buybacks, shareholder benefit programs) through FY2031 (ending March 2031), pursuing improvements in growth, profitability, and efficiency.

Under the medium-term business strategy of "diversification of the Management Consulting domain," the company will continue aggressive M&A investment. Of the FY2026 (ending March 2026) net sales, approximately ¥25 million is attributable to growth M&A investment funded by cash on hand exceeding ¥10,000 million. The Peace Mind Inc. group joining added the corporate wellbeing domain.

Against a backdrop of growing needs for human capital management, the HR domain was significantly strengthened through the group joining of Peace Mind Inc. (EAP and corporate wellbeing) and Surpass Inc. (women's advancement and DE&I). In FY2026 (ending March 2026), HR domain net sales grew +29.7% year on year (¥3,384 million), the largest growth among all domains.

Strengthening the development and sales promotion of industry-specific professional DX services such as "Executive KARTE®," "HR KARTE®," "ACADEMY CLOUD+®," and "Working Better Cloud." Also promoting operational efficiency and continuous improvement in service quality through the use and advancement of AI.

Continuing to increase dividends, with an annual dividend of ¥27 for FY2026 (ending March 2026) (payout ratio of 79.6%) and a forecast of ¥29 for FY2027 (ending March 2027) (forecast payout ratio of 80.3%). Share buybacks will also be conducted flexibly to improve capital efficiency toward achieving the ROE target.

Last updated: July 19, 2026