VRAIN Solution (135A) Q2 2027 earnings summary

Executive summary

• FY27 H1 revenue reached ¥1,884M, up 80.0% YoY; operating income rose 328.1% to ¥409M and net income rose 336.2% to ¥267M. Order backlog was ¥1,308M.

• Growth reflected delivery of prior-period orders, expanded sales activity and strong demand for manufacturing AI inspection systems.

Financial highlights

• H1 gross profit was ¥1,436M, up 70.6% YoY; gross margin was 76.2%, down 4.2 percentage points as physical AI and large-equipment projects gained sales share.

• SG&A rose 37.6% YoY to ¥1,026M, including personnel costs of ¥421M, recruiting costs of ¥157M and R&D of ¥161M.

• Q2 standalone revenue rose 90.6% QoQ to ¥1,236M; operating income was ¥440M versus a ¥31M operating loss in Q1. Gross margin was 76.0% and operating margin 35.7%.

Outlook and guidance

• FY2027 guidance unchanged: revenue ¥4,823M (+47.1%), operating income ¥1,449M (+58.5%), ordinary income ¥1,449M (+58.9%), net income ¥972M (+49.2%) and EPS ¥94.85.

• H1 performance is tracking plan; management expects H2 revenue growth to drive further profit accumulation.

• Expansion plans include sales offices in Utsunomiya, Nagano, Hiroshima and Fukuoka following Kanazawa, plus overseas entry preparations.

• Medium-term targets are 50% revenue CAGR and 30–40% operating margin; FY29 revenue planning range is ¥9,600M–¥12,000M.

• Forecasts depend on current information and assumptions, and actual results may differ materially.