INES Corporation
9742・Prime Market・Information & Communication
Information services business (single segment)
A single-segment company providing integrated IT services to the public and private sectors
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (FY2026, ending March 2026, actual) | ¥36,616 million | ¥40,563 million | ↓ |
| Operating income (FY2026, ending March 2026, actual) | -¥647 million | ¥3,536 million | ↓ |
| Ordinary income (FY2026, ending March 2026, actual) | -¥460 million | ¥3,608 million | ↓ |
| Net income attributable to owners of parent (FY2026, ending March 2026, actual) | -¥1,843 million | ¥2,436 million | ↓ |
| Operating margin (FY2026, ending March 2026, actual) | -1.8% | 8.7% | ↓ |
| Public sector revenue (FY2026, ending March 2026, actual) | ¥17,077 million | ¥19,873 million | ↓ |
| Private sector revenue (FY2026, ending March 2026, actual) | ¥19,538 million | ¥20,689 million | ↓ |
| Equity ratio (end of FY2026, ending March 2026) | 74.9% | 69.1% | ↑ |
| Net assets per share (end of FY2026, ending March 2026) | ¥1,776.13 | ¥1,884.21 | ↓ |
| Operating cash flow (FY2026, ending March 2026, actual) | ¥3,480 million | ¥1,478 million | ↑ |
| Cash and cash equivalents at period-end (end of FY2026, ending March 2026) | ¥8,273 million | ¥7,991 million | ↑ |
Business Details
Ines Corporation Group operates a single-segment information services business, providing integrated services from the planning and development of information systems and networks through to post-launch operation, maintenance, and upkeep. Its customer base is divided into the public sector (administrative systems for local governments, etc.) and the private sector (finance, insurance, retail, etc.), with its core product being "WebRings," an administrative system for local governments. The company collaborates with its four subsidiaries (Ines Research Institute, Ines Relations, Ines Technologies, and Ines General Services) to broadly develop BPO, cloud, and system operation services, among others. It is accelerating R&D and implementation of AI agent functions, aiming to drive DX (digital transformation) for local governments through advanced automation of administrative tasks.
Recent Overview
Fell into a substantial loss due to standardization delays and impairment losses, with a V-shaped recovery expected in the following period
In FY2026 (ending March 2026), revenue fell sharply to ¥36,616 million (down 9.7% year on year), and the company posted an operating loss of ¥647 million (compared with operating income of ¥3,536 million in the prior period). The public sector declined 14.1% due to the effects of revenue recognition standards amid delays and plan changes in local government system standardization work, while the private sector fell 5.6% due to a decline following large prior-period projects and a partial withdrawal from the outsourcing business. In addition, the company recorded an impairment loss of ¥1,104 million on software for service provision due to the unrecoverability of standardization-related development investments, as well as a provision for loss on construction contracts of ¥488 million, resulting in a net loss of ¥1,843 million for the period. For FY2027 (ending March 2027), the company forecasts revenue of ¥40,000 million (up 9.2% year on year) and a recovery to operating income of ¥2,500 million. An annual dividend of ¥55 per share (an increase of ¥5 year on year) is planned.
Key Products
Growth Drivers
- From FY2027 (ending March 2027), the first year of the "2028 Medium-Term Management Plan," the company will pursue three business strategies: a "regional social issue resolution model," a "municipal package strategy," and a "solutions business strategy"
- Progressive rollout of the national-standard-compliant WebRings to local governments began in January 2026, with expected order growth under standardization migration plans from FY2026 onward
- Full-scale development of the next-generation WebRings in anticipation of standardized system migration by specific migration-support organizations
- Accelerated R&D and implementation of AI agent functions, driving advanced automation of administrative tasks and local government DX
- Productivity improvements through the construction of a development environment leveraging generative AI to enable high-quality, short-turnaround implementation
- Expansion of customer numbers and strengthening of the customer base through the use of alliance partners' solutions
- Promotion of talent utilization through a revised HR system centered on evaluating engineer expertise (effective from April 2025)
Risks
- Risk of deteriorating cost ratios due to delays in local government system standardization work and quality issues (a provision for loss on construction contracts of ¥488 million was recorded in the current period)
- Risk of additional provisions for loss on construction contracts due to changes in progress estimates for custom software
- Risk of additional impairment losses due to the unrecoverability of standardization-related development investments (an impairment loss of ¥1,104 million was recorded in the current period)
- Risk of declining orders for large-scale system development projects in the private sector (system development revenue fell 15.8% year on year in the current period)
- Risk of revenue decline associated with the scaling back of outsourcing business at group companies
- Risk of rising personnel costs due to a structural shortage of IT talent and intensifying competition for human resources
- Uncertainty in the domestic economy due to rising prices and policy developments in foreign countries (such as U.S. tariff policy)
Last updated: June 22, 2026