NSD CO.,LTD.
9759・Prime Market・Information & Communication
Business
NSD Co., Ltd. is an independent IT services company founded in 1969, forming a group consisting of the company itself, 14 consolidated subsidiaries, and 3 affiliated companies. Its core systems development business is organized into four segments: Financial IT (banking, insurance, securities), Industrial IT (manufacturing, commerce), Social Infrastructure IT (telecommunications, transportation, public sector, electricity/gas/water), and IT Infrastructure, providing software development, systems consulting, and IT infrastructure construction to customers across a wide range of industries. As a second pillar under development, the Solutions business offers problem-solving solutions in areas such as healthcare, shareholder benefit services, security, and RFID. Consolidated revenue for FY2026 (ending March 2026) reached ¥117,813 million, and the company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The main revenue source is the SI-type business that undertakes system development for client companies, with stable earnings supported by long-term continuing transactions with major clients in finance, manufacturing, public sector, and other industries. The order backlog (¥32,083 million at the end of FY2026 (ending March 2026), up 14.8% year on year) enhances the visibility of next-period revenue. In addition, the company is cultivating a product/service-based solutions business as a second pillar, aiming to diversify revenue sources and improve profit margins. Funding needs are mainly covered by internal funds and operating cash flow, with borrowings from financial institutions also utilized for M&A.
Company Strengths
Financial IT for banks, insurers, and securities firms is the largest segment (FY2026 (ending March 2026) sales of ¥35,073 million, operating margin of 19.3%), with a customer base diversified across multiple industries including manufacturing, public sector, and telecommunications. The financial IT order backlog reached ¥14,023 million, up 31.4% year-on-year, providing high visibility into next-period earnings. Long-term continuous business relationships with customers, backed by a track record of over 55 years since founding, form a barrier to entry for competitors.
In FY2026 (ending March 2026), the operating margin was 16.2% and ROE was 18.4%, maintaining a high level of profitability within the industry. EBITDA margin was 18.3%. With net assets of ¥74,799 million and cash and cash equivalents of ¥32,491 million, the company maintains a robust financial base, achieving five consecutive years of revenue and profit growth while absorbing M&A and human capital investments, and FY2026 (ending March 2026) marked a new record profit.
The company has expanded its business domains and talent base through M&A, including Art Holdings (made a subsidiary in April 2023) and Noza (made a subsidiary in May 2023). It has sequentially opened regional offices in Sendai (August 2022), Hiroshima (January 2023), and Sapporo (May 2026), promoting the securing of talented personnel in regional areas. Synergies are being realized through a group structure of 14 companies.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) came to ¥117,813 million (up 9.3% year on year), operating profit reached ¥19,073 million (up 13.2%), and profit attributable to owners of parent totaled ¥13,009 million (up 10.3%), with all three metrics setting new record highs. Compared with FY2022 (ending March 2022), revenue grew 65.5% and operating profit 67.1%, marking substantial expansion in scale over the five years of the mid-term plan. This growth was mainly driven by a favorable order environment, underpinned by robust corporate demand for DX investment, AI adoption, and core system renewal. By segment, Industrial IT (operating profit +17.7%) and the Solutions business (+92.6%) were the primary drivers of the strong growth. Operating cash flow improved significantly to ¥16,156 million (versus ¥12,298 million in the previous period), and the cash balance at period-end rose to ¥32,491 million. For FY2027 (ending March 2027), the company forecasts revenue of ¥126,000 million (+6.9%) and operating profit of ¥19,500 million (+2.2%), with profit growth expected to slow temporarily as it factors in increased investment in R&D and human capital.
Growth Strategy
Expansion of the DX, AI, and solutions businesses, and transition to the next growth stage under the new medium-term management plan
The company has positioned system development for DX purposes, utilization of new AI technologies, and the solutions business as priority focus areas. In FY2026 (ended March 2026), DAS business revenue reached ¥57,578 million (up 15.8% year on year), of which revenue related to DX, AI, and other new technologies was ¥39,870 million (up 16.2% year on year). For FY2027 (ending March 2027), the company targets DAS business revenue of ¥63,000 million (up 9.4% year on year) and will continue to serve as the driver of company-wide growth.
The company is developing and providing "BizInsight," a business efficiency solution usable in dedicated in-house environments such as on-premises systems. It is positioned as a core product to establish a second earnings pillar for the solutions business, aiming to capture generative AI demand that meets both public- and private-sector security requirements. Operating profit in the solutions business roughly doubled year on year in FY2026 (ended March 2026).
The company achieved the revenue target of ¥100.0 billion under its previous medium-term plan (with FY2026 (ended March 2026) as the final year) two years ahead of schedule, and a new medium-term management plan will commence from FY2027 (ending March 2027). In the first year, priority will be given to expanding investment in R&D and human capital, with an anticipated increase in cost of sales and SG&A expenses. The company forecasts revenue of ¥126,000 million (up 6.9%) and operating profit of ¥19,500 million (up 2.2%), clearly indicating a shift into an investment phase.
Effective April 1, 2026, NSD-DX Technology Co., Ltd. was renamed NSD AI Technology Co., Ltd., clarifying its function as a dedicated AI organization. Art Holdings Co., Ltd. simplified its organizational structure through an absorption-type merger with Art Technology Co., Ltd. as the surviving company. Stellas Co., Ltd. was renamed NSD Digital Solutions Co., Ltd., strengthening the specialization of the solutions business. These changes aim to optimize resources and improve operational efficiency across the group as a whole.
The company is promoting support for resolving management issues directly tied to business operations, including identifying challenges and examining countermeasures related to "next-generation water utility DX," which water utility operators are advancing. Revenue in the social infrastructure IT business expanded to ¥24,200 million (up 7.8% year on year), and the company aims to diversify its order base by winning DX projects in the public and infrastructure sectors.
Last updated: July 19, 2026