Digital Grid has raised its outlook for the year ending July 2026 after nine-month earnings ran ahead of its earlier plan, but the upgrade says as much about where growth is coming from as about the headline number. Net profit for the first nine months rose 17.9% year on year to ¥1.872 billion, while revenue increased 6.6% to ¥5.107 billion, operating profit rose 3.1% to ¥2.448 billion and ordinary profit increased 12.2% to ¥2.551 billion. The company now expects full-year revenue of ¥6.595 billion, operating profit of ¥2.836 billion, ordinary profit of ¥2.660 billion and net profit of ¥1.919 billion.
Here is what changed in the full-year guide.
| Metric | Old guide | Revised guide | Change |
|---|---|---|---|
| Revenue | 6,281 | 6,595 | +5.0% |
| Operating profit | 2,363 | 2,836 | +20.0% |
| Ordinary profit | 2,128 | 2,660 | +25.0% |
| Net profit | 1,476 | 1,919 | +30.0% |
Management said the main reasons for the revision were stronger-than-budgeted revenue recognition in the Power PF and Renewable PF businesses, plus solid performance in the AS business within the other segment. That matters because the core power platform is still the group’s earnings anchor, but it was not the fastest-growing part of the business. Over the first nine months, Power PF sales rose 2.9% to ¥4.357 billion while segment profit slipped 1.0% to ¥2.859 billion. Renewable PF sales, by contrast, jumped 54.6% to ¥493 million and segment profit more than doubled to ¥253 million. The other segment moved to a ¥19.6 million profit from a ¥174.9 million loss a year earlier, helped by improved earnings in the balancing-power aggregation business.
The latest quarter broadly supports the stronger year-end story. In the three months to April, revenue rose to ¥1.778 billion from ¥1.323 billion in the previous quarter, operating profit to ¥910 million from ¥469 million, ordinary profit to ¥899 million from ¥585 million and net profit to ¥655 million from ¥424 million, according to the company’s presentation. Total contracted capacity, a key operating indicator, reached a record 1,367 MW, up 33.9% from a year earlier.
Still, this was not a simple story of the core fee engine accelerating. The same presentation shows DGP fee revenue slipped to ¥1.038 billion from ¥1.086 billion quarter on quarter even as handled power volume edged up to 741 GWh from 714 GWh. Digital Grid attributed that to seasonality and a fee-unit adjustment. Presentation materials also said higher settlement amounts with general transmission and distribution operators helped lift total revenue. So the read-through for investors is encouraging, but slightly messier than a clean platform-fee surge: the year-end outlook is better, yet a meaningful share of the improvement is coming from renewables and balancing services, not just from the core platform alone.