ENVALITH
株式会社ビジネスブレイン太田昭和 logo

BUSINESS BRAIN SHOWAOTA INC.

9658・Prime Market・Information & Communication

Official website
株式会社ビジネスブレイン太田昭和 logo
BUSINESS BRAIN SHOWAOTA INC.9658

Business

Business Brain Showa-Ota, Inc. (BBS), founded in 1967, is a domestic IT services company with over 50 years of history. It comprises two segments: Consulting & System Development (revenue ¥27,602 million) and Management Services (BPO) Business (revenue ¥11,451 million). The core of its business is the "BBS Cycle," which seamlessly provides everything from advanced consulting in management accounting, IFRS response, internal controls, and PLM Support Solutions, to accounting and HR package implementation, and further to BPO in the accounting, HR, and finance domains. Its main customers are major domestic corporations in manufacturing, infrastructure, financial institutions, and other sectors. The company has 13 consolidated subsidiaries and 2 equity-method affiliates, and is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

Through the "BBS Cycle," in which the company identifies clients' operational challenges via consulting, implements solutions using systems built with proprietary and partner products, and then takes on the subsequent business operations as BPO, the company builds ongoing revenue relationships that extend beyond one-off projects. Consulting & System Development accounts for approximately 71% of revenue, while BPO accounts for approximately 29%, with the rising BPO ratio contributing to revenue stabilization. The company is also actively pursuing expansion of its service domains through M&A.

Company Strengths

The company explains that no competitor has a system capable of seamlessly providing Management Accounting Consulting & Solutions, System Development, and BPO. In FY2025 (ended March 2025), orders received amounted to ¥40,377 million (up 16.4% year on year), and the order backlog stood at ¥12,998 million (up 13.8% year on year), reflecting an accumulation of on-hand orders. This demonstrates that the effectiveness of the service chain is being reflected in order results.

Due to the full-year contribution of Fresco Corp. (acquired in November 2023) and Twinkle Corp. (acquired in January 2024), BPO business revenue for FY2025 (ended March 2025) increased 31.1% year on year to ¥11,451 million. Twinkle Corp. alone contributed ¥2,086 million in incremental revenue. Historically, the company has continuously carried out M&A since 2014, building a track record of expanding group functions.

As of the end of FY2025 (ended March 2025), cash and cash equivalents stood at ¥9,908 million, and against total assets of ¥45,323 million, equity capital was ¥29,612 million (an equity ratio of approximately 65%). The company also holds overdraft agreements with two partner banks (with a maximum limit of ¥1,500 million), maintaining financial flexibility to support growth investments such as M&A.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue was ¥42,100 million (up 8.5% year on year), operating profit was ¥3,262 million (up 13.6%), and net income was ¥2,987 million (up 21.0%), achieving revenue and profit growth on a normalized, underlying basis even after the drop-off of extraordinary gains from the prior period. As indicated by the accumulation of order intake and order backlog in the Consulting & System Development segment, current demand conditions remain solid, and earnings momentum can be assessed as favorable.

To reach ¥100,000 million in revenue by 2030 from ¥42,100 million in FY2026 (ending March 2026), an annual growth rate of approximately 24% is required over the remaining four years. This is difficult to achieve through organic growth alone (most recently +8.5%), making an expansion in the scale and frequency of M&A essential. Close attention should be paid to the impact of M&A deal quality, integration risk, and goodwill amortization burden on future profit margins.

The BPO & Managed Services segment posted business profit of ¥902 million in the previous consolidated fiscal year (approximately 9.8% of revenue), a level comparable to the Consulting & System Development segment (approximately 9.3%). However, investment in the transition to BPaaS and rising personnel costs (an external factor stemming from a tightening labor market) could constrain further margin improvement. Whether the shift toward higher value-added services through BPaaS translates into improved profit margins is a key point of focus over the medium term.

Growth Strategy

Under BBS2026, the company aims to achieve Goal2030 (revenue of ¥100 billion) through strengthening the BBS cycle, M&A, and BPaaS deployment

Strengthening the circular model of consulting → system implementation → BPO operations, driving deeper engagement with existing clients and acquisition of new clients. The revenue growth achieved in FY2026 (ending March 2026) continues to demonstrate the effectiveness of the cycle.

Building on the acquisition track record of Fresco Corp. and Twinkle Corp., the company will continue to leverage M&A as a growth engine. Continued execution of large- and mid-sized M&A deals to complement organic growth is essential for achieving Goal2030.

Deploying BPaaS (BPO as a Service), which integrates BPO and DX in the HR/payroll and accounting domains, to pursue higher value-added offerings and improved profit margins. The company aims to drive differentiation while capturing stable growth in the BPO market (an external factor).

Last updated: July 17, 2026