DIGITAL GRID (350A) Q1 2026 earnings summary

Executive summary

• Achieved record-high quarterly net sales of ¥2,005 million and profit attributable to owners of ¥791 million in 1Q FYE26/7, with strong growth in both Power PF and RE PF businesses.

• Operating profit for the quarter was ¥1,067 million, up 9.7% year-over-year.

• Fee revenue from DGP remained flat as higher GMV was offset by lower unit prices; non-DGP fee revenue is expected to contract from 2Q onward.

• A 6-for-1 stock split was conducted on November 1, 2025; EPS figures are post-split.

• Full-year earnings forecast remains unchanged due to anticipated seasonality and revenue trends.

Financial highlights

• Net sales for 1Q FYE26/7 reached ¥2,005 million, up 18.8% year-over-year; operating profit was ¥1,067 million, up 9.7% year-over-year.

• Gross profit margin was 81.8%–81.9%, and operating profit margin was 53.2% for the quarter.

• Net income for the quarter was ¥791 million, up 12.1% year-over-year.

• DGP fee revenue was ¥1,207 million, nearly flat year-over-year due to a 31.2% increase in contracted capacity offset by an 18.9% decline in unit price.

• SG&A expenses increased due to higher advertising and personnel costs, with headcount up 40% year-over-year.

Outlook and guidance

• Full-year net sales forecast for FY ending July 31, 2026, is ¥6,281 million, up 2.1% year-over-year.

• Operating profit is projected at ¥2,363 million, down 13.8% year-over-year; profit attributable to owners is forecast at ¥1,476 million, a 21.0% decrease year-over-year.

• Non-DGP fee revenue is expected to contract from 2Q, mirroring last year’s pattern; full-year earnings forecast is unchanged.

• Operating profit margin is expected to temporarily dip below 40% for FYE26/7 due to investment and flat unit prices, but medium-term target remains above 40%.

• Medium-term plan targets ROE above 20%, operating profit margin above 40%, and 30%+ CAGR in GMV, with ¥10 billion CAPEX for grid-scale batteries by FYE28/7.